Quarterly report pursuant to Section 13 or 15(d)

Commitments, Contingencies and Guarantees (Tables)

v2.4.0.6
Commitments, Contingencies and Guarantees (Tables)
3 Months Ended
Mar. 31, 2013
Commitments and Contingencies Disclosure [Abstract]  
Contractual Obligation, Fiscal Year Maturity Schedule
At March 31, 2013, 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
$
5,013

 
$
1,134

 
$
1,761

 
$
2,003

 
$
115

Purchasing and other commitments
3,650

 
1,878

 
1,017

 
571

 
184

Operating leases
3,257

 
674

 
962

 
698

 
923

Commitments to enter into resale and securities borrowing agreements
86,243

 
86,243

 

 

 

Commitments to enter into repurchase and securities lending agreements
56,906

 
56,906

 

 

 

Total
$
155,069

 
$
146,835

 
$
3,740

 
$
3,272

 
$
1,222

 
 
 
 
 
 
 
 
 
 
Schedule of Guarantor Obligations
Merrill Lynch’s guarantee arrangements and their expiration at March 31, 2013 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
$
108

 
$
92

 
$
3

 
$

 
$
13

 
$

Residual value guarantees
320

 
320

 

 

 

 

Standby letters of credit and other guarantees
386

 
287

 
72

 
20

 
7

 

Schedule of Outstanding Claims by Category and Product
The table below presents unresolved representations and warranties claims by counterparty at March 31, 2013 and December 31, 2012. The unresolved repurchase claims include only claims where Merrill Lynch believes that the counterparty has a basis to submit claims. During the three months ended March 31, 2013, Merrill Lynch received $1,075 million of new repurchase claims, which consisted of approximately $1,037 million from private-label securitization trustees, $37 million from GSEs, and $1 million from whole-loan investors.
    
Unresolved Repurchase Claims by Counterparty
(dollars in millions)
 
 
March 31, 2013
December 31, 2012
GSEs
$
100

$
93

Monoline
147

147

Whole-loan investors, private-label securitization trustees and other 
6,806

5,805

Total
$
7,053

$
6,045


Schedule of Loan Repurchases and Indemnification Payments
(dollars in millions)
 
 
 
 
Three Months Ended
March 31, 2013
 
Three Months Ended
March 31, 2012
Claims resolved (1)
$
16

 
$
11

 
 
 
 
Repurchases
$
3

 
$

Indemnification payments
18

 
11

Total
$
21

 
$
11

(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 months ended March 31, 2013 and March 31, 2012.
(dollars in millions)
 
 
 
Three Months Ended March 31,
 
2013
2012
Balance, beginning of period
$
2,011

$
2,847

Indemnification payments
(18
)
(11
)
Provision
15

11

Balance, end of period
$
2,008

$
2,847