Guarantees and Other Commitments (Tables)

9 Months Ended

Sep. 30, 2022

Guarantees - Carrying Value and Maximum Exposure to Loss

Table 11.1 shows carrying value and maximum exposure to loss on our guarantees.

Table 11.1: Guarantees – Carrying Value and Maximum Exposure to Loss


			Maximum exposure to loss
(in millions)	Carrying value of obligation (asset)		Expires in one year or less	Expires after one year through three years	Expires after three years through five years	Expires after five years	Total	Non-investment grade
September 30, 2022
Standby letters of credit (1)	$	116	15,299	4,170	2,064	432	21,965	6,557
Direct pay letters of credit (1)	13		1,480	2,512	464	6	4,462	1,360
Written options (2)	725		14,127	6,779	1,399	460	22,765	17,171
Loans and LHFS sold with recourse (3)	16		302	916	3,486	8,896	13,600	11,457
Exchange and clearing house guarantees	—		—	—	—	4,438	4,438	—
Other guarantees and indemnifications (4)	—		583	1	10	183	777	527
Total guarantees	$	870	31,791	14,378	7,423	14,415	68,007	37,072
December 31, 2021
Standby letters of credit (1)	$	119	13,816	5,260	1,572	460	21,108	6,939
Direct pay letters of credit (1)	6		1,597	2,137	1,283	4	5,021	1,373
Written options (2)	(280)		12,107	4,575	513	36	17,231	13,645
Loans and LHFS sold with recourse (3)	20		71	943	3,610	8,650	13,274	11,268
Exchange and clearing house guarantees	—		—	—	—	8,100	8,100	—
Other guarantees and indemnifications (4)	—		797	2	12	263	1,074	756
Total guarantees	$	(135)	28,388	12,917	6,990	17,513	65,808	33,981

(1)Standby and direct pay letters of credit are reported net of syndications and participations.

(2)Written options, which are in the form of derivatives, are also included in the derivative disclosures in Note 14 (Derivatives). Carrying value net asset position is a result of certain deferred premium option trades.

(3)Represents recourse provided, predominantly to the GSEs, on loans sold under various programs and arrangements.

(4)Includes indemnifications provided to certain third-party clearing agents. Estimated maximum exposure to loss was $138 million and $216 million with related collateral of $1.4 billion and $2.3 billion as of September 30, 2022, and December 31, 2021, respectively.