Commitments, Contingent Liabilities and Guarantees (Tables)

9 Months Ended

Sep. 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:
		September 30,	December 31,
($ in millions)		2015	2014
Commitments to extend credit	$	66,661	63,827
Letters of credit		3,323	3,974
Forward contracts related to held for sale residential mortgage loans		1,392	999
Noncancelable operating lease obligations		642	697
Purchase obligations		70	77
Capital commitments for private equity investments		60	78
Capital expenditures		42	28
Capital lease obligations		25	37

Credit Risk Associated With Commitments

Risk ratings under this risk rating system are summarized in the following table as of:
		September 30,	December 31,
($ in millions)		2015	2014
Pass	$	65,596	62,787
Special mention		539	660
Substandard		526	380
Total commitments to extend credit	$	66,661	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 September 30, 2015:
($ in millions)
Less than 1 year(a)	$	1,914
1 - 5 years(a)		1,355
Over 5 years		54
Total letters of credit	$	3,323

• Includes $64and $15issued 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:
		September 30,	December 31,
($ in millions)		2015	2014
Pass	$	2,894	3,483
Special mention		107	147
Substandard		265	299
Doubtful		57	45
Total letters of credit	$	3,323	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 nine months ended
		September 30,		September 30,
($ in millions)		2015	2014	2015	2014
Balance, beginning of period	$	32	36	35	44
Net additions to the reserve		(3)	1	(1)	5
Losses charged against the reserve		(1)	(2)	(6)	(14)
Balance, end of period	$	28	35	28	35

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following tables provide a rollforward of unresolved claims by claimant type for the nine months ended September 30:
	GSE			Private Label
2015 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	37	$	6	1	$	1
New demands	350		26	257		42
Loan paydowns/payoffs	(26)		(2)	-		-
Resolved demands	(337)		(26)	(258)		(43)
Balance, end of period	24	$	4	-	$	-

	GSE			Private Label
2014 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	264	$	41	33	$	5
New demands	643		84	11		-
Loan paydowns/payoffs	(33)		(4)	(2)		(1)
Resolved demands	(780)		(106)	(42)		(4)
Balance, end of period	94	$	15	-	$	-

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:

		Visa	Bancorp Cash
($ in millions)		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