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)

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligation, Fiscal Year Maturity Schedule

At June 30, 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	$	4,718	$	961	$	1,656	$	2,005	$	96
Purchasing and other commitments	3,418		1,987		848		435		148
Operating leases	3,285		615		974		692		1,004
Commitments to enter into resale and securities borrowing agreements	93,225		93,225		—		—		—
Commitments to enter into repurchase and securities lending agreements	58,872		58,872		—		—		—
Total	$	163,518	$	155,660	$	3,478	$	3,132	$	1,248

Schedule of Guarantor Obligations

Merrill Lynch’s guarantee arrangements and their expiration at June 30, 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	$	107	$	91	$	3	$	—	$	13	$	—
Residual value guarantees	320		320		—		—		—		—
Standby letters of credit and other guarantees	359		257		68		21		13		—

Schedule of Outstanding Claims by Category and Product

The table below presents unresolved representations and warranties claims by counterparty at June 30, 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 June 30, 2013, Merrill Lynch received $641 million of new repurchase claims, which consisted of approximately $613 million from private-label securitization trustees and $28 million from GSEs.

Unresolved Repurchase Claims by Counterparty

(dollars in millions)
	June 30, 2013		December 31, 2012
GSEs	$	46	$	93
Monoline	146		147
Whole-loan investors, private-label securitization trustees and other	7,227		5,805
Total	$	7,419	$	6,045

Schedule of Loan Repurchases and Indemnification Payments

As presented in the table below, during the three and six months ended June 30, 2013, Merrill Lynch paid $70 million and $91 million to resolve $71 million and $87 million, respectively, of repurchase claims through repurchase or reimbursement to investors or securitization trusts for losses they incurred, resulting in a loss on the related loans at the time of repurchase or reimbursement of $61 million and $79 million, respectively. During the three and six months ended June 30, 2012, Merrill Lynch paid $18 million and $29 million to resolve $20 million and $31 million, respectively, of repurchase claims through repurchase or reimbursement to investors or securitization trusts for losses they incurred, resulting in a loss on the related loans at the time of repurchase or reimbursement of $12 million and $23 million, respectively.



(dollars in millions)	2013				2012
	Three Months Ended June 30		Six Months Ended June 30		Three Months Ended June 30		Six Months Ended June 30
Claims resolved ⁽¹⁾	$	71	$	87	$	20	$	31

Repurchases	$	10	$	13	$	7	$	7
Indemnification payments	60		78		11		22
Total	$	70	$	91	$	18	$	29

⁽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 six months ended June 30, 2013 and June 30, 2012.



(dollars in millions)
	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Balance, beginning of period	$	2,008		$	2,847		$	2,011		$	2,847
Provision	(4		)	(840		)	11			(829		)
Other net reductions	(63		)	(16		)	(81		)	(27		)
Balance, end of period	$	1,941		$	1,991		$	1,941		$	1,991

- 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