Quarterly report pursuant to Section 13 or 15(d)

Commitments, Contingencies and Guarantees (Tables)

v2.4.0.6
Commitments, Contingencies and Guarantees (Tables)
 6 Months Ended
Jun. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
Contractual Obligation, Fiscal Year Maturity Schedule
At June 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
$
5,494

 
$
1,867

 
$
714

 
$
2,608

 
$
305

Purchasing and other commitments
4,652

 
2,767

 
871

 
673

 
341

Operating leases
2,643

 
744

 
881

 
540

 
478

Commitments to enter into resale and securities borrowing agreements
95,727

 
95,727

 
—

 
—

 
—

Commitments to enter into repurchase and securities lending agreements
39,904

 
39,904

 
—

 
—

 
—

Total
$
148,420

 
$
141,009

 
$
2,466

 
$
3,821

 
$
1,124

 
 
 
 
 
 
 
 
 
 
Schedule of Guarantor Obligations
Merrill Lynch’s guarantee arrangements and their expiration at June 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
$
772

 
$
753

 
$
—

 
$
3

 
$
16

 
$
—

Residual value guarantees
320

 
—

 
320

 
—

 
—

 
—

Standby letters of credit and other guarantees
329

 
282

 
27

 
8

 
12

 
—

Schedule of Outstanding Claims by Category and Product
The table below presents unresolved representations and warranties claims by counterparty at June 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 six months ended June 30, 2012, Merrill Lynch received $2.2 billion and $2.5 billion of new repurchase claims primarily from private-label securitization trustees.
    
Unresolved Repurchase Claims by Counterparty
(dollars in millions)
 
 
June 30, 2012
December 31, 2011
GSEs
$
62

$
65

Monoline
147

136

Whole-loan investors, private-label securitization trustees and other (1)
3,630

1,101

Total
$
3,839

$
1,302

(1) The majority of these repurchase claims are from trustees of private-label securitization trusts through which First Franklin sold subprime loans.

Schedule of Loan Repurchases and Indemnification Payments
(dollars in millions)
 
 
 
 
 
 
2012
 
2011
 
Three Months Ended
June 30
Six Months Ended
June 30
 
Three Months Ended
June 30
Six Months Ended
June 30
Claims resolved (1)
$
20

$
31

 
$
22

$
25

 
 
 
 
 
 
Repurchases
$
7

$
7

 
$
—

$
—

Indemnification payments
11

22

 
23

25

Total
$
18

$
29

 
$
23

$
25

(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 non-GSE representation and warranties exposure recorded in the three and six months ended June 30, 2012 and June 30, 2011.
(dollars in millions)
 
 
 
 
 
Three Months Ended June 30,
Six Months Ended June 30,
 
2012
2011
2012
2011
Balance, beginning of period
$
2,847

$
130

$
2,847

$
213

Charge-offs
(16
)
(24
)
(27
)
(85
)
Provision
(840
)
2,741

(829
)
2,719

Balance, end of period
$
1,991

$
2,847

$
1,991

$
2,847