Quarterly report pursuant to Section 13 or 15(d)

Commitments, Contingencies and Guarantees (Tables)

v2.4.0.6
Commitments, Contingencies and Guarantees (Tables)
 9 Months Ended
Sep. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
Contractual Obligation, Fiscal Year Maturity Schedule
At September 30, 2012, Merrill Lynch’s commitments had the following expirations:
(dollars in millions)
 
 
 
Commitment expiration
 
Total
 
Less than
1 Year
 
1-3
Years
 
3-5
Years
 
Over 5
Years
Lending commitments
$
4,707

 
$
915

 
$
617

 
$
2,921

 
$
254

Purchasing and other commitments
4,063

 
1,995

 
1,108

 
696

 
264

Operating leases
2,617

 
786

 
828

 
540

 
463

Commitments to enter into resale and securities borrowing agreements
98,340

 
98,340

 
—

 
—

 
—

Commitments to enter into repurchase and securities lending agreements
56,412

 
56,412

 
—

 
—

 
—

Total
$
166,139

 
$
158,448

 
$
2,553

 
$
4,157

 
$
981

 
 
 
 
 
 
 
 
 
 
Schedule of Guarantor Obligations
Merrill Lynch’s guarantee arrangements and their expiration at September 30, 2012 are summarized as follows (see Note 6 for information related to derivative financial instruments within the scope of Guarantees Accounting):
(dollars in millions)
 
 
 
Expiration
 
 
 
Maximum
Payout
 
Less than
1 year
 
1-3
years
 
3-5
years
 
Over 5 years
 
Carrying
Value
Standby liquidity facilities
$
783

 
$
764

 
$
—

 
$
3

 
$
16

 
$
—

Residual value guarantees
320

 
206

 
114

 
—

 
—

 
—

Standby letters of credit and other guarantees
412

 
323

 
62

 
27

 
—

 
—

Schedule of Outstanding Claims by Category and Product
The table below presents unresolved representations and warranties claims by counterparty at September 30, 2012 and December 31, 2011. The unresolved repurchase claims include only claims where Merrill Lynch believes that the counterparty has a basis to submit claims. During the three and nine months ended September 30, 2012, Merrill Lynch received $0.8 billion and $3.3 billion of new repurchase claims primarily from private-label securitization trustees.
    
Unresolved Repurchase Claims by Counterparty
(dollars in millions)
 
 
September 30, 2012
December 31, 2011
GSEs
$
74

$
65

Monoline
147

136

Whole-loan investors, private-label securitization trustees and other 
4,344

1,101

Total
$
4,565

$
1,302


Schedule of Loan Repurchases and Indemnification Payments
(dollars in millions)
 
 
 
 
 
 
2012
 
2011
 
Three Months Ended
September 30
Nine Months Ended
September 30
 
Three Months Ended
September 30
Nine Months Ended
September 30
Claims resolved (1)
$
22

$
53

 
$
26

$
51

 
 
 
 
 
 
Repurchases
$
4

$
11

 
$
6

$
6

Indemnification payments
15

37

 
10

35

Total
$
19

$
48

 
$
16

$
41

(1) Represents unpaid principal balance.
Schedule of Liability for Representations and Warranties
The table below presents a rollforward of the liability for representations and warranties and includes the provisions for representation and warranties exposure recorded in the three and nine months ended September 30, 2012 and September 30, 2011.
(dollars in millions)
 
 
 
 
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2012
2011
2012
2011
Balance, beginning of period
$
1,991

$
2,847

$
2,847

$
213

Charge-offs
(29
)
(17
)
(56
)
(102
)
Provision (Reversal)
60

17

(769
)
2,736

Balance, end of period
$
2,022

$
2,847

$
2,022

$
2,847