1.0.0.3falseFair Value of Financial Instrumentsfalse1$falsefalseiso4217_USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170iso4217_USD_per_sharesDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instanceshares0sharesStandardhttp://www.xbrl.org/2003/instanceshares053bac_FairValueOfFinancialInstrumentsDisclosureTextBlockbacfalsenadurationstringThis item represents the estimated fair value of financial instruments including those carried at fair value.falsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalse00<div>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Arial" color="#B23040" size="3"><b>NOTE 21 –
Fair Value of Financial Instruments</b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="justify">
<font style="FONT-FAMILY: ARIAL" size="1">The fair values of
financial instruments have been derived, in part, by the
Corporation’s assumptions, the estimated amount and timing of
future cash flows and estimated discount rates. Different
assumptions could significantly affect these estimated fair values.
Accordingly, the net realizable values could be materially
different from the estimates presented below. In addition, the
estimates are only indicative of the value of individual financial
instruments and should not be considered an indication of the fair
value of the Corporation.</font></p>
<p style="MARGIN-TOP: 0px; TEXT-INDENT: 16px; MARGIN-BOTTOM: 0px" align="justify"><font style="FONT-FAMILY: ARIAL" size="1">The
following disclosures represent financial instruments in which the
ending balance at December 31, 2009 and 2008 are not carried
at fair value in its entirety on the Corporation’s
Consolidated Balance Sheet.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><font style="FONT-FAMILY: ARIAL" color="#4C4C4C" size="1">Short-term Financial
Instruments</font></b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="justify">
<font style="FONT-FAMILY: ARIAL" size="1">The carrying value of
short-term financial instruments, including cash and cash
equivalents, time deposits placed, federal funds sold and
purchased, resale and certain repurchase agreements, commercial
paper and other short-term investments and borrowings, approximates
the fair value of these instruments. These financial instruments
generally expose the Corporation to limited credit risk and have no
stated maturities or have short-term maturities and carry interest
rates that approximate market. The Corporation elected to account
for certain structured reverse repurchase agreements under the fair
value option. See <i>Note 20 – Fair Value Measurements</i>
for additional information on these structured reverse repurchase
agreements.</font></p>
<p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><font style="FONT-FAMILY: ARIAL" color="#4C4C4C" size="1">Loans</font></b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="justify">
<font style="FONT-FAMILY: ARIAL" size="1">Fair values were
generally determined by discounting both principal and interest
cash flows expected to be collected using an observable discount
rate for similar instruments with adjustments that the Corporation
believes a market participant would consider in determining fair
value. The Corporation estimates the cash flows expected to be
collected using internal credit risk, interest rate and prepayment
risk models that incorporate the Corporation’s best estimate
of current key assumptions, such as default rates, loss severity
and prepayment speeds for the life of the loan. The Corporation
elected to account for certain large corporate loans which exceeded
the Corporation’s single name credit risk concentration
guidelines under the fair value option. See <i>Note 20 –
Fair</i> <i>Value Measurements</i> for additional information on
loans for which the Corporation adopted the fair value
option.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size="1"> </font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size="1"> </font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><font style="FONT-FAMILY: ARIAL" color="#4C4C4C" size="1">Deposits</font></b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="justify">
<font style="FONT-FAMILY: ARIAL" size="1">The fair value for
certain deposits with stated maturities was calculated by
discounting contractual cash flows using current market rates for
instruments with similar maturities. The carrying value of foreign
time deposits approximates fair value. For deposits with no stated
maturities, the carrying amount was considered to approximate fair
value and does not take into account the significant value of the
cost advantage and stability of the Corporation’s long-term
relationships with depositors. The Corporation elected to account
for certain long-term fixed-rate deposits which are economically
hedged with derivatives under the fair value option. See <i>Note 20
– Fair Value Measurements</i> for additional information on
these long-term fixed-rate deposits.</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font size="1"> </font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b><font style="FONT-FAMILY: ARIAL" color="#4C4C4C" size="1">Long-term Debt</font></b></font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px" align="justify">
<font style="FONT-FAMILY: ARIAL" size="1">The Corporation uses
quoted market prices for its long-term debt when available. When
quoted market prices are not available, fair value is estimated
based on current market interest rates and credit spreads for debt
with similar maturities. The Corporation elected to account for
certain structured notes under the fair value option. See <i>Note
20 – Fair Value Measurements</i> for additional information
on these structured notes.</font></p>
<p style="MARGIN-TOP: 0px; TEXT-INDENT: 16px; MARGIN-BOTTOM: 0px" align="justify"><font style="FONT-FAMILY: ARIAL" size="1">The
carrying and fair values of certain financial instruments at
December 31, 2009 and 2008 were as follows:</font></p>
<p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px">
 </p>
<p style="BORDER-BOTTOM: #b23040 2pt solid; LINE-HEIGHT: 1px; MARGIN-TOP: 0px; MARGIN-BOTTOM: 2px">
 </p>
<table border="0" cellspacing="0" cellpadding="0" width="100%" align="center">
<tr>
<td width="62%"></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td valign="bottom" width="2%"></td>
<td></td>
<td></td>
<td valign="bottom" width="4%"></td>
<td></td>
<td></td>
</tr>
<tr>
<td height="8"></td>
<td height="8" colspan="14"></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="13" align="center"><font style="FONT-FAMILY: Arial" size="1"><b>December 31</b></font></td>
</tr>
<tr>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="5" align="center"><font style="FONT-FAMILY: Arial" size="1"><b>2009</b></font></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"><font size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="5" align="center"><font style="FONT-FAMILY: ARIAL" size="1">2008</font></td>
</tr>
<tr>
<td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1">(Dollars in millions)</font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: Arial" size="1"><b>Carrying Value <font size="1"><sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">(1)</sup></font></b></font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1">    </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: Arial" size="1"><b>Fair Value</b></font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1">    </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
 <font size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: ARIAL" size="1">Carrying Value <sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">(1)</sup></font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1">    </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="2" align="right"><font style="FONT-FAMILY: ARIAL" size="1">Fair Value</font></td>
</tr>
<tr>
<td valign="top">
<p style="TEXT-INDENT: -1.5em; MARGIN-LEFT: 1.5em"><font style="FONT-FAMILY: Arial" size="1"><b>Financial assets</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="TEXT-INDENT: -1.6em; MARGIN-LEFT: 3.2em"><font style="FONT-FAMILY: ARIAL" size="1">Loans <sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">(2)</sup></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="FONT-FAMILY: Arial" size="1"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: Arial" size="1"><b>841,020</b></font></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"><font style="FONT-FAMILY: Arial" size="1"><b>$</b></font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: Arial" size="1"><b>813,596</b></font></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">886,198</font></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1">$</font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">841,629</font></td>
</tr>
<tr>
<td valign="top">
<p style="TEXT-INDENT: -1.5em; MARGIN-LEFT: 1.5em"><font style="FONT-FAMILY: Arial" size="1"><b>Financial
liabilities</b></font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>
<tr>
<td valign="top">
<p style="TEXT-INDENT: -1.6em; MARGIN-LEFT: 3.2em"><font style="FONT-FAMILY: ARIAL" size="1">Deposits</font></p>
</td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="FONT-FAMILY: Arial" size="1"><b> </b></font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: Arial" size="1"><b>991,611</b></font></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"><font style="FONT-FAMILY: Arial" size="1"><b> </b></font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: Arial" size="1"><b>991,768</b></font></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"></td>
<td valign="bottom"><font size="1"> </font></td>
<td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1"> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">882,997</font></td>
<td valign="bottom"><font size="1">    </font></td>
<td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="1"> </font></td>
<td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">883,987</font></td>
</tr>
<tr>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="top">
<p style="TEXT-INDENT: -1.6em; MARGIN-LEFT: 3.2em"><font style="FONT-FAMILY: ARIAL" size="1">Long-term debt</font></p>
</td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font style="FONT-FAMILY: Arial" size="1"><b> </b></font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right"><font style="FONT-FAMILY: Arial" size="1"><b>438,521</b></font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1">    </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font style="FONT-FAMILY: Arial" size="1"><b> </b></font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right"><font style="FONT-FAMILY: Arial" size="1"><b>440,246</b></font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1">    </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font style="FONT-FAMILY: ARIAL" size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">268,292</font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font size="1">    </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">
<font style="FONT-FAMILY: ARIAL" size="1"> </font></td>
<td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="1">260,291</font></td>
</tr>
</table>
<table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="1"><sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">(1)</sup></font></td>
<td valign="top" align="left">
<p align="justify"><font style="FONT-FAMILY: ARIAL" size="1">The
carrying value of loans is presented net of allowance for loan and
lease losses. Amounts exclude leases.</font></p>
</td>
</tr>
</table>
<table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td valign="top" width="1%" align="left"><font style="FONT-FAMILY: ARIAL" size="1"><sup style="POSITION: relative; BOTTOM: 0.8ex; VERTICAL-ALIGN: baseline">(2)</sup></font></td>
<td valign="top" align="left">
<p align="justify"><font style="FONT-FAMILY: ARIAL" size="1">Fair
value is determined based on the present value of future cash flows
using credit spreads or risk adjusted rates of return that a buyer
of the portfolio would require at December 31, 2009 and 2008.
However, the Corporation expects to collect the principal cash
flows underlying the book values as well as the related interest
cash flows.</font></p>
</td>
</tr>
</table>
</div>NOTE 21 –
Fair Value of Financial Instruments
The fair values of
financial instruments have been derived, in part, by the
Corporation’sfalsefalseThis item represents the estimated fair value of financial instruments including those carried at fair value.No authoritative reference available.falsefalse11falseUnKnownUnKnownUnKnownfalsetrue
