Merger and Restructuring Charges Merger and restructuring charges are recorded in the Consolidated Statement of Income and include incremental costs to integrate the operations of the Corporation and its recent acquisitions.
These charges represent costs associated with these one-time activities and do not represent ongoing costs of the fully integrated combined organization.
On January 1, 2009, the Corporation adopted new accounting guidance, on a prospective basis, that requires that acquisition-related transaction and restructuring costs be charged to expense as incurred.
Previously, these expenses were recorded as an adjustment to goodwill.
The following table presents severance and employee-related charges, systems integrations and related charges, and other merger-related charges.
## Table 0 ##
Included for 2009 are merger-related charges of $1.8 billion related to the Merrill Lynch acquisition, $843 million related to the Countrywide acquisition, and $97 million related to the LaSalle acquisition.
Included for 2008 are merger-related charges of $623 million related to the LaSalle acquisition, $205 million related to the Countrywide acquisition, and $107 million related to the U. S.  Trust Corporation acquisition.
Included for 2007 are merger-related charges of $233 million related to the 2006 MBNA Corporation (MBNA) acquisition, $109 million related to the U. S.  Trust Corporation acquisition and $68 million related to the LaSalle acquisition.
During 2009, the $1.8 billion merger-related charges for the Merrill Lynch acquisition included $1.2 billion for severance and other employeerelated costs, $480 million of system integration costs, and $129 million in other merger-related costs.
Merger-related Exit Cost and Restructuring Reserves The following table presents the changes in exit cost and restructuring reserves for 2009 and 2008.
Exit cost reserves were established in purchase accounting resulting in an increase in goodwill.
Restructuring reserves are established by a charge to merger and restructuring charges.
Exit costs were not recorded in purchase accounting for the Merrill Lynch acquisition in accordance with amendments to the accounting guidance for business combinations which were effective January 1, 2009.
## Table 1 ##
At December 31, 2008, there were $523 million of exit cost reserves related principally to the Countrywide acquisition, including $347 million for severance, relocation and other employee-related costs and $176 million for contract terminations.
During 2009, $24 million of exit cost reserve adjustments were recorded for the LaSalle acquisition primarily due to lower than expected contract terminations.
Cash payments of $387 million during 2009 consisted of $271 million in severance, relocation and other employee-related costs and $116 million in contract terminations.
At December 31, 2009, exit cost reserves of $112 million related principally to Countrywide.
At December 31, 2008, there were $86 million of restructuring reserves related to the Countrywide, LaSalle and U. S.  Trust Corporation acquisitions related to severance and other employee-related costs.
During 2009, $1.1 billion was added to the restructuring reserves related to severance and other employee-related costs primarily associated with the Merrill Lynch acquisition.
Cash payments of $816 million during 2009 were all related to severance and other employee-related costs.
As of December 31, 2009, restructuring reserves of $403 million included $328 million for Merrill Lynch and $74 million for Countrywide.
Payments under exit cost and restructuring reserves associated with the U. S.  Trust Corporation acquisition were completed in 2009 while payments associated with the LaSalle, Countrywide and Merrill Lynch acquisitions will continue into 2010.
NOTE 3 – Trading Account Assets and Liabilities The following table presents the components of trading account assets and liabilities at December 31, 2009 and 2008.
## Table 2 ##
(1) Includes $23.5 billion and $52.6 billion at December 31, 2009 and 2008 of government-sponsored enterprise (GSE) obligations.
Recent Accounting Developments On January 1, 2010, the Corporation adopted new Financial Accounting Standards Board (FASB) guidance that results in the consolidation of entities that were off-balance sheet as of December 31, 2009.
The adoption of this new accounting guidance resulted in a net incremental increase in assets on January 1, 2010, on a preliminary basis, of $100 billion, including $70 billion resulting from consolidation of credit card trusts and $30 billion from consolidation of other special purpose entities including multi seller conduits.
These preliminary amounts are net of retained interests in securitizations held on our balance sheet and an $11 billion increase in the allowance for loan losses, the majority of which relates to credit card receivables.
This increase in the allowance for loan losses was recorded on January 1, 2010 as a charge net-of-tax to retained earnings for the cumulative effect of the adoption of this new accounting guidance.
Initial recording of these assets and related allowance and liabilities on the Corporation’s balance sheet had no impact on results of operations.
Segment Results
## Table 3 ##
(1) Total revenue is net of interest expense, and is on a FTE basis for the business segments and All Other.
(2) Global Card Services is presented on a managed basis with a corresponding offset recorded in All Other.
Deposits net income narrowed due to declines in net revenue and increased noninterest expense.
Net revenue declined mainly due to a lower net interest income allocation from ALM activities and spread compression as interest rates declined.
This decrease was partially offset by growth in average deposits on strong organic growth and the migration of certain client deposits from GWIM partially offset by an expected decline in higher-yielding Countrywide deposits.
Noninterest expense increased as a result of higher Federal Deposit Insurance Corporation (FDIC) insurance and special assessment costs.
Global Card Services reported a net loss as credit costs continued to rise reflecting weak economies in the U. S. , Europe and Canada.
Managed net revenue declined mainly due to lower fee income driven by changes in consumer retail purchase and payment behavior in the current economic environment and the absence of one-time gains that positively impacted 2008 results.
The decline was partially offset by higher net interest income as lower funding costs outpaced the decline in average managed loans.
Provision for credit losses increased as economic conditions led to higher losses.
Home Loans & Insurance net loss widened as higher credit costs continued to negatively impact results.
Net revenue and noninterest expense increased primarily driven by the full-year impact of Countrywide and higher loan production from increased refinance activity.
Provision for credit losses increased driven by continued economic and housing market weakness combined with further deterioration in the purchased impaired portfolio.
Global Banking net income declined as increases in revenue driven by strong deposit growth, the impact of the Merrill Lynch acquisition and favorable market conditions for debt and equity issuances were more than offset by increased credit costs.
Provision for credit losses increased driven by higher net charge-offs and reserve additions in the commercial real estate and commercial – domestic portfolios.
These increases reflect deterioration across a broad range of property types, industries and borrowers.
Noninterest expense increased as a result of the Merrill Lynch acquisition, and higher FDIC insurance and special assessment costs.
Global Markets net income increased driven by the addition of Merrill Lynch and a more favorable trading environment.
Net revenue increased due to improved market conditions and new issuance capabilities due to the addition of Merrill Lynch driving increased fixed income, currency and commodity, and equity revenues.
In addition, improved market conditions led to significantly lower write-downs on legacy assets compared with the prior year.
GWIM net income increased driven by the addition of Merrill Lynch partially offset by a lower net interest income allocation from ALM activities, the migration of client balances to Deposits and Home Loans & Insurance, lower average equity market levels and higher credit costs.
Net revenue more than doubled as a result of higher investment and brokerage services income due to the addition of Merrill Lynch, the gain on our investment in BlackRock and the lower level of support we provided for certain cash funds.
Provision for credit losses increased driven by higher net charge-offs in the consumer real estate and commercial portfolios.
All Other net income increased driven by higher equity investment income and increased gains on the sale of debt securities partially offset by negative credit valuation adjustments on certain Merrill Lynch structured notes as credit spreads improved.
Results were also impacted by lower other-than-temporary impairment charges primarily related to non-agency CMOs.
Excluding the securitization impact to show Global Card Services on a managed basis, the provision for credit losses increased due to higher credit costs related to our ALM residential mortgage portfolio.
significant variable interest in the conduits and they are not included in our discussion of VIEs in Note 9 – Variable Interest Entities to the Consolidated Financial Statements.
Impact of Adopting New Accounting Guidance on Consolidation On June 12, 2009, the FASB issued new guidance on sale accounting criteria for transfers of financial assets, including transfers to QSPEs and consolidation of VIEs.
As described more fully in Note 8 – Securitizations to the Consolidated Financial Statements, the Corporation routinely transfers mortgage loans, credit card receivables and other financial instruments to SPEs that meet the definition of a QSPE which are not currently subject to consolidation by the transferor.
Among other things, this new guidance eliminates the concept of a QSPE and as a result, existing QSPEs generally will be subject to consolidation under the new guidance.
This new guidance also significantly changes the criteria by which an enterprise determines whether it must consolidate a VIE, as described more fully in Note 9 – Variable Interest Entities to the Consolidated Financial Statements.
A VIE is an entity, typically an SPE, which has insufficient equity at risk or which is not controlled through voting rights held by equity investors.
Currently, a VIE is consolidated by the enterprise that will absorb a majority of the expected losses or expected residual returns created by the assets of the VIE.
This new guidance requires that a VIE be consolidated by the enterprise that has both the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.
This new guidance also requires that an enterprise continually reassesses, based on current facts and circumstances, whether it should consolidate the VIEs with which it is involved.
The table below shows the impact on a preliminary basis of this new accounting guidance in terms of incremental GAAP assets and riskweighted assets for those VIEs and QSPEs that we consolidated on January 1, 2010.
The assets and liabilities of the newly consolidated credit card securitization trusts, multi-seller commercial paper conduits, home equity lines of credit and certain other VIEs are recorded at their respective carrying values.
The Corporation has elected to account for the assets and liabilities of the newly consolidated asset acquisition commercial paper conduits, municipal bond trusts and certain other VIEs under the fair value option.
## Table 4 ##
(1) The Corporation undertook certain actions during 2009 related to its off-balance sheet credit card securitization trusts.
As a result of these actions, we included approximately $63.6 billion of incremental risk-weighted assets in its risk-based capital ratios as of December 31, 2009.
(2) Regulatory capital requirements changed effective January 1, 2010 for all ABCP conduits.
The increase in risk-weighted assets in this table reflects the impact of these changes on all ABCP conduits, including those that were consolidated prior to January 1, 2010.
In addition to recording the incremental assets and liabilities on the Corporation’s Consolidated Balance Sheet, we recorded an after-tax charge of approximately $6 billion to retained earnings on January 1, 2010 as the cumulative effect of adoption of these new accounting standards.
The charge relates primarily to the addition of $11 billion of allowance for loan losses for the newly consolidated assets, principally credit card related.
On January 21, 2010, the joint agencies issued a final rule regarding risk-based capital and the impact of adoption of the new consolidation guidance issued by the FASB.
The final rule allows for a phase-in period for a maximum of one year for the effect on risk-weighted assets and the regulatory limit on the inclusion of the allowance for loan and lease losses in Tier 2 capital related to the assets that are consolidated.
Our current estimate of the incremental impact is a decrease in our Tier 1 and Tier 1 common capital ratios of 65 to 75 bps.
However, the final capital impact will be affected by certain factors, including, the final determination of the cumulative effect of adoption of this new accounting guidance on retained earnings, and limitations of deferred tax assets for riskbased capital purposes.
The Corporation has elected to forgo the phase-in period and consolidate the amounts for regulatory capital purposes as of January 1, 2010.
For more information, refer to the Regulatory Initiatives section on page 55.
Basel Regulatory Capital Requirements In June 2004, the Basel II Accord was published with the intent of more closely aligning regulatory capital requirements with underlying risks, similar to economic capital.
While economic capital is measured to cover unexpected losses, the Corporation also manages regulatory capital to adhere to regulatory standards of capital adequacy.
The Basel II Final Rule (Basel II Rules), which was published on December 7, 2007, establishes requirements for the U. S.  implementation and provided detailed capital requirements for credit and operational risk under Pillar 1, supervisory requirements under Pillar 2 and disclosure requirements under Pillar 3.
The Corporation will begin Basel II parallel implementation during the second quarter of 2010.
Financial institutions are required to successfully complete a minimum parallel qualification period before receiving regulatory approval to report regulatory capital using the Basel II methodology.
During the parallel period, the resulting capital calculations under both the current (Basel I) rules and the Basel II Rules will be reported to the financial institutions regulatory supervisors for at least four consecutive quarterly periods.
Once the parallel period is successfully completed, the financial institution will utilize Basel II as their methodology for calculating regulatory capital.
A three-year transitional floor period will follow after which use of Basel I will be discontinued.
In July 2009, the Basel Committee on Banking Supervision released a consultative document entitled “Revisions to the Basel II Market Risk
Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals.
Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity.
In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.
Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.
Use of Estimates The preparation of the financial statements requires management to make a number of estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period.
The most significant estimates, as discussed within our Summary of Significant Accounting Policies, pertain to the critical assumptions utilized in testing real estate assets for impairment as well as in estimating the fair value of real estate assets when an impairment event has taken place.
Actual results could differ from those estimates.
(3) Significant Acquisitions and Dispositions 2010 Acquisition of Remaining Interest in Dugan Realty, L. L. C.  On July 1, 2010, we acquired our joint venture partner’s 50% interest in Dugan Realty, L. L. C.  (“Dugan”), a real estate joint venture that we had previously accounted for using the equity method, for a payment of $166.7 million.
Dugan held $28.1 million of cash at the time of acquisition, which resulted in a net cash outlay of $138.6 million.
As the result of this transaction we obtained 100% of Dugan’s membership interests.
At the date of acquisition, Dugan owned 106 industrial buildings totaling 20.8 million square feet and 63 net acres of undeveloped land located in Midwest and Southeast markets.
Dugan had a secured loan with a face value of $195.4 million due in October 2010, which was repaid at its scheduled maturity date, and a secured loan with a face value of $87.6 million due in October 2012 (see Note 8).
The acquisition was completed in order to pursue our strategy to increase our overall allocation to industrial real estate assets.
The following table summarizes our allocation of the fair value of amounts recognized for each major class of assets and liabilities (in thousands):

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="2"> December 31</td></tr><tr><td>(Dollars in millions)</td><td> 2009</td><td>2008</td></tr><tr><td> Trading account assets</td><td></td><td></td></tr><tr><td>U.S. government and agency securities<sup>-1</sup></td><td>$44,585</td><td>$60,038</td></tr><tr><td>Corporate securities, trading loans and other</td><td>57,009</td><td>34,056</td></tr><tr><td>Equity securities</td><td>33,562</td><td>20,258</td></tr><tr><td>Foreign sovereign debt</td><td>28,143</td><td>13,614</td></tr><tr><td>Mortgage trading loans and asset-backed securities</td><td>18,907</td><td>6,349</td></tr><tr><td> Total trading account assets</td><td>$182,206</td><td>$134,315</td></tr><tr><td> Trading account liabilities</td><td></td><td></td></tr><tr><td>U.S. government and agency securities</td><td>$26,519</td><td>$27,286</td></tr><tr><td>Equity securities</td><td>18,407</td><td>12,128</td></tr><tr><td>Foreign sovereign debt</td><td>12,897</td><td>7,252</td></tr><tr><td>Corporate securities and other</td><td>7,609</td><td>5,057</td></tr><tr><td> Total trading account liabilities</td><td>$65,432</td><td>$51,723</td></tr></table>
<table><tr><td>(Dollars in millions)</td><td> 2009</td><td>2008</td><td>2007</td></tr><tr><td>Severance and employee-related charges</td><td>$1,351</td><td>$138</td><td>$106</td></tr><tr><td>Systems integrations and related charges</td><td>1,155</td><td>640</td><td>240</td></tr><tr><td>Other</td><td>215</td><td>157</td><td>64</td></tr><tr><td> Total merger and restructuring charges</td><td>$2,721</td><td>$935</td><td>$410</td></tr></table>
<table><tr><td></td><td colspan="2">Exit Cost Reserves</td><td colspan="2">Restructuring Reserves</td></tr><tr><td>(Dollars in millions)</td><td>2009</td><td>2008</td><td>2009</td><td>2008</td></tr><tr><td> Balance, January 1</td><td>$523</td><td>$377</td><td>$86</td><td>$108</td></tr><tr><td>Exit costs and restructuring charges:</td><td></td><td></td><td></td><td></td></tr><tr><td>Merrill Lynch</td><td>n/a</td><td>n/a</td><td>949</td><td>n/a</td></tr><tr><td>Countrywide</td><td>–</td><td>588</td><td>191</td><td>71</td></tr><tr><td>LaSalle</td><td>-24</td><td>31</td><td>-6</td><td>25</td></tr><tr><td>U.S. Trust Corporation</td><td>–</td><td>-3</td><td>-1</td><td>40</td></tr><tr><td>MBNA</td><td>–</td><td>-6</td><td>–</td><td>-3</td></tr><tr><td>Cash payments</td><td>-387</td><td>-464</td><td>-816</td><td>-155</td></tr><tr><td> Balance, December 31</td><td>$112</td><td>$523</td><td>$403</td><td>$86</td></tr></table>
<table><tr><td></td><td colspan="2">Total Revenue -1</td><td colspan="2">Net Income (Loss)</td></tr><tr><td>(Dollars in millions)</td><td>2009</td><td>2008</td><td>2009</td><td>2008</td></tr><tr><td>Deposits</td><td>$14,008</td><td>$17,840</td><td>$2,506</td><td>$5,512</td></tr><tr><td>Global Card Services<sup>-2</sup></td><td>29,342</td><td>31,220</td><td>-5,555</td><td>1,234</td></tr><tr><td>Home Loans & Insurance</td><td>16,902</td><td>9,310</td><td>-3,838</td><td>-2,482</td></tr><tr><td>Global Banking</td><td>23,035</td><td>16,796</td><td>2,969</td><td>4,472</td></tr><tr><td>Global Markets</td><td>20,626</td><td>-3,831</td><td>7,177</td><td>-4,916</td></tr><tr><td>Global Wealth & Investment Management</td><td>18,123</td><td>7,809</td><td>2,539</td><td>1,428</td></tr><tr><td>All Other<sup>-2</sup></td><td>-1,092</td><td>-5,168</td><td>478</td><td>-1,240</td></tr><tr><td>Total FTE basis</td><td>120,944</td><td>73,976</td><td>6,276</td><td>4,008</td></tr><tr><td>FTE adjustment</td><td>-1,301</td><td>-1,194</td><td>–</td><td>–</td></tr><tr><td> Total Consolidated</td><td>$119,643</td><td>$72,782</td><td>$6,276</td><td>$4,008</td></tr></table>
<table><tr><td>(Dollars in billions)</td><td> Preliminary Incremental GAAP Assets</td><td> Estimated Incremental Risk-Weighted Assets</td></tr><tr><td> Type of VIE/QSPE</td><td></td><td></td></tr><tr><td>Credit card securitization trusts<sup>(</sup><sup>1</sup><sup>)</sup></td><td>$70</td><td>$8</td></tr><tr><td>Asset-backed commercial paper conduits<sup>(</sup><sup>2</sup><sup>)</sup></td><td>15</td><td>11</td></tr><tr><td>Municipal bond trusts</td><td>5</td><td>1</td></tr><tr><td>Home equity lines of credit</td><td>5</td><td>5</td></tr><tr><td>Other</td><td>5</td><td>–</td></tr><tr><td> Total</td><td>$100</td><td>$25</td></tr></table>

Question: What will total merger and restructuring charges be like in 2010 if it develops with the same increasing rate as current? (in dollars in millions)
Answer: 7918.55
Reasoning program: subtract(2721,935), divide(#0,935), add(1,#1), multiply(2721,#2)