Commitments, Contingent Liabilities and Guarantees (Tables)

6 Months Ended

Jun. 30, 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:
		June 30,	December 31,
($ in millions)		2015	2014
Commitments to extend credit	$	65,455	63,827
Letters of credit		3,542	3,974
Forward contracts related to held for sale mortgage loans		1,096	999
Noncancelable operating lease obligations		655	697
Purchase obligations		75	77
Capital commitments for private equity investments		66	78
Capital expenditures		38	37
Capital lease obligations		27	28

Credit Risk Associated With Commitments

Risk ratings under this risk rating system are summarized in the following table as of:
		June 30,	December 31,
($ in millions)		2015	2014
Pass	$	64,412	62,787
Special mention		503	660
Substandard		539	380
Doubtful		1	-
Total commitments to extend credit	$	65,455	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 June 30, 2015:
($ in millions)
Less than 1 year(a)	$	1,960
1 - 5 years(a)		1,532
Over 5 years		50
Total letters of credit	$	3,542

• Includes $47and $21issued 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:
		June 30,	December 31,
($ in millions)		2015	2014
Pass	$	3,099	3,483
Special mention		114	147
Substandard		282	299
Doubtful		47	45
Total letters of credit	$	3,542	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		For the six months ended
		June 30,		June 30,
($ in millions)		2015	2014	2015	2014
Balance, beginning of period	$	36	38	35	44
Net additions to the reserve		-	1	2	4
Losses charged against the reserve		(4)	(3)	(5)	(12)
Balance, end of period	$	32	36	32	36

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following tables provide a rollforward of unresolved claims by claimant type for the six months ended June 30:
	GSE			Private Label
2015 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	37	$	6	1	$	1
New demands	240		20	11		-
Loan paydowns/payoffs	(12)		-	-		-
Resolved demands	(225)		(20)	(9)		(1)
Balance, end of period	40	$	6	3	$	-

	GSE			Private Label
2014 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	264	$	41	33	$	5
New demands	464		59	10		-
Loan paydowns/payoffs	(24)		(2)	(2)		(1)
Resolved demands	(656)		(90)	(34)		(3)
Balance, end of period	48	$	8	7	$	1

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 dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts 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