Bank of America Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Commitments, Contingencies and Guarantees (Tables)

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

- Definition

Tabular disclosure of each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties.

+ References + Details