Commitments, Contingent Liabilities and Guarantees (Tables)

3 Months Ended

Mar. 31, 2015

Commitments, Contingent Liabilities and Guarantees

Summary of Significant Commitments

Commitments
The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of:
		March 31,	December 31,
($ in millions)		2015	2014
Commitments to extend credit	$	64,425	63,827
Letters of credit		3,781	3,974
Forward contracts related to held for sale mortgage loans		1,956	999
Noncancelable operating lease obligations		693	697
Purchase obligations		71	77
Capital commitments for private equity investments		68	78
Capital expenditures		37	37
Capital lease obligations		30	28

Credit Risk Associated With Commitments

Risk ratings under this risk rating system are summarized in the following table as of:
		March 31,	December 31,
($ in millions)		2015	2014
Pass	$	63,538	62,787
Special mention		447	660
Substandard		440	380
Total	$	64,425	63,827

Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party

Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of March 31, 2015:
($ in millions)
Less than 1 year(a)	$	2,245
1 - 5 years(a)		1,484
Over 5 years		52
Total	$	3,781

• Includes $84and$22issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than one year and between one and five years, respectively.

Credit Risk associated with Letters of Credit

Risk ratings under this risk rating system are summarized in the following table as of:
		March 31,	December 31,
($ in millions)		2015	2014
Pass	$	3,296	3,483
Special mention		151	147
Substandard		286	299
Doubtful		48	45
Total	$	3,781	3,974

Activity in Reserve for Representation and Warranty Provisions

The following table summarizes activity in the reserve for representation and warranty provisions:
		For the three months ended March 31,
($ in millions)		2015	2014
Balance, beginning of period	$	35	44
Net additions to the reserve		2	2
Losses charged against the reserve		(1)	(8)
Balance, end of period	$	36	38

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following tables provide a rollforward of unresolved claims by claimant type for the three months ended March 31:
	GSE			Private Label
2015 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	37	$	6	1	$	1
New demands	118		9	6		-
Loan paydowns/payoffs	(4)		-	-		-
Resolved demands	(119)		(11)	(5)		(1)
Balance, end of period	32	$	4	2	$	-

	GSE			Private Label
2014 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	264	$	41	33	$	5
New demands	230		34	10		1
Loan paydowns/payoffs	(16)		(1)	(2)		(1)
Resolved demands	(375)		(55)	(31)		(3)
Balance, end of period	103	$	19	10	$	2

Visa Funding and Bancorp Cash Payments

After the Bancorp's sale of Visa Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilution in the conversion of Class B Shares into Class AShares, and along with other terms of the total return swap, required the Bancorp to make cash payments to the swap counterparty as follows:

($ in millions)
		Visa		Bancorp Cash
Period		Funding Amount		Payment Amount
Q2 2010	$	500	$	20
Q4 2010		800		35
Q2 2011		400		19
Q1 2012		1,565		75
Q3 2012		150		6
Q3 2014		450		18	i