COMMITMENTS AND GUARANTEE

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        COMMITMENTS AND GUARANTEES


                                                                                                                  12 Months Ended
        COMMITMENTS AND GUARANTEES                                                                                   Dec. 31, 2009
                                                                                                                     USD / shares
COMMITMENTS AND GUARANTEES
                                         NOTE 25 COMMITMENTS AND GUARANTEES
                                         EQUITY FUNDING AND OTHER COMMITMENTS


                                         Our unfunded commitments at December 31, 2009 included private equity investments of $45
                                         STANDBY LETTERS OF CREDIT



                                         We issue standby letters of credit and have risk participations in standby letters of credit and
                                         each case to support obligations of our customers to third parties, such as remarketing progra
                                         outstanding standby letters of credit totaled $10.0 billion at December 31, 2009 and $10.3 billi
                                         process for standby letters of credit as of December 31, 2009, 86% of the net outstanding bal
                                         expected risk of loss is currently low compared to 88% as of December 31, 2008, while 14% o
                                         internal risk ratings below pass, indicating a higher degree of risk of default compared to 12%



                                         If the customer fails to meet its financial or performance obligation to the third party under the
                                         remarketing program, then upon the request of the guaranteed party, we would be obligated t
                                         participations in standby letters of credit and bankers’ acceptances outstanding on December
                                         The aggregate maximum amount of future payments PNC could be required to make under o
                                         standby letters of credit and bankers’ acceptances was $13.1 billion at December 31, 2009, o



                                         As of December 31, 2009, assets of approximately $1.0 billion secured certain specifically ide
                                         recourse provisions from third parties was also available for this purpose as of December 31,
                                         credit and letter of credit risk participations issued on behalf of specific customers is also secu
                                         other obligations to us. The carrying amount of the liability for our obligations related to standb
                                         credit and bankers’ acceptances was $270 million at December 31, 2009.


                                         STANDBY BOND PURCHASE AGREEMENTS AND OTHER LIQUIDITY FACILITIES

                                         We enter into standby bond purchase agreements to support municipal bond obligations. At D
                                         these facilities was $476 million. We also enter into certain other liquidity facilities to support i
                                         conduits including Market Street. At December 31, 2009, our total commitments under these
                                         Market Street.
                                         INDEMNIFICATIONS
                                         We are a party to numerous acquisition or divestiture agreements under which we have purch
                                         assets. These agreements can cover the purchase or sale of:
                                                      •
                                                        •
                                                        •
                                                        •
                                                        •



                                         These agreements generally include indemnification provisions under which we indemnify the
                                         the indemnified parties as a result of the transaction in question. When PNC is the seller, the
                                         with protection relating to the quality of the assets we are selling and the extent of any liabilitie
                                         indemnification provisions, we cannot quantify the total potential exposure to us resulting from
We provide indemnification in connection with securities offering transactions in which we are
indemnification to the underwriters or placement agents analogous to the indemnification prov
above. When we are an underwriter or placement agent, we provide a limited indemnification
offering and, if there are other underwriters, indemnification to the other underwriters intended
in the offering. Due to the nature of these indemnification provisions, we cannot quantify the to


We enter into certain types of agreements that include provisions for indemnifying third partie
              •
               •



               •
               •
               •
               •
               •
Due to the nature of these indemnification provisions, we cannot calculate our aggregate pote

We enter into certain types of agreements, including leases, assignments of leases, and subl
our agents, assignees and/or sublessees, and employees. Due to the nature of these indemn
potential exposure under them.


We enter into contracts for the delivery of technology service in which we indemnify the other
third parties. Due to the nature of these indemnification provisions, we cannot calculate our ag
We engage in certain insurance activities which require our employees to be bonded. We sati
were insignificant at December 31, 2009.

In the ordinary course of business, we enter into contracts with third parties under which the th
these contracts, we agree to indemnify the third party service provider under certain circumsta
contract and the amount of the indemnification liability, if any, cannot be determined.


We are a general or limited partner in certain asset management and investment limited partn
would require us to make payments in excess of our remaining funding commitments. While i
limited to the sum of our unfunded commitments and partnership distributions received by us,
result, we cannot determine our aggregate potential exposure for these indemnifications.




Pursuant to their bylaws, PNC and its subsidiaries provide indemnification to directors, officer
liabilities incurred as a result of their service on behalf of or at the request of PNC and its subs
covered individuals costs incurred in connection with certain claims or proceedings, subject to
amounts advanced if it is ultimately determined that the individual is not entitled to indemnifica
and advancement obligations that companies we acquire had to their officers, directors and so
We advanced such costs on behalf of several such individuals with respect to pending litigatio
determine the aggregate potential exposure resulting from the obligation to provide this indem

In connection with the lending of securities facilitated by Global Investment Servicing as an in
indemnification to those clients against the failure of the borrowers to return the securities. Th
basis; therefore, the exposure to us is limited to temporary shortfalls in the collateral as a resu
securities. At December 31, 2009, the total maximum potential exposure as a result of these i
the time exceeded that amount.
VISA INDEMNIFICATION


Our payment services business issues and acquires credit and debit card transactions throug
In October 2007 Visa completed a restructuring and issued shares of Visa Inc. common stock
contemplation of its initial public offering (IPO). As part of the Visa Reorganization, we receive
stock allocated to the US members. Prior to the IPO, the US members, which included PNC,
settlements related to the specified litigation. We continue to have an obligation to indemnify V
litigation.

As a result of the acquisition of National City, we became party to judgment and loss sharing
and loss sharing agreements were designed to apportion financial responsibilities arising from
related to the specified litigation.



In July 2009, Visa funded $700 million to an escrow account and reduced the conversion ratio
estimated $66 million share of the $700 million as a reduction of our indemnification liability an

Our Visa indemnification liability included on our Consolidated Balance Sheet at December 31
provision in Section 2.05j of the Visa By-Laws and/or the indemnification provided through the
exposure to the specified Visa litigation may be different than this amount.
RECOURSE AGREEMENTS
We are authorized to underwrite, originate, fund, sell and service commercial mortgage loans
We have similar arrangements with FHLMC.



Under these programs, we generally assume up to one-third of the risk of loss on unpaid princ
December 31, 2009, the potential exposure to loss was $6.0 billion. Accordingly, we maintain
fair value of this exposure. At December 31, 2009, the unpaid principal balance outstanding o
billion. The approximate fair value of the loss share arrangement in the form of reserves for lo
December 31, 2009 and is included in other liabilities on our Consolidated Balance Sheet. If p
a contractual interest in the collateral underlying the mortgage loans on which losses occurred
determining our share of such losses. The serviced loans are not included on our Consolidate



We sell residential mortgage loans pursuant to agreements which contain representations con
documentation, collateral, and insurability. Prior to the acquisition, National City also sold hom
On a regular basis, investors may request PNC to indemnify them against losses on certain lo
comply with applicable representations. During 2009 the frequency of such requests increase
loan delinquencies, resulting from deterioration in overall economic conditions and trends, par


Upon completion of its own investigation as to the validity of the claim, PNC will repurchase o
form of an outright repurchase of the loan or a settlement payment to the investor. If the loan
loan disclosures and statistics. Indemnification requests are generally received within two yea



Management maintains a liability for estimated losses on loans expected to be repurchased, o
regularly evaluates the adequacy of this recourse liability based on trends in repurchase and i
inherent risks in the loans, and current economic conditions. As part of its evaluation of the ad
estimated loss projections over the life of the subject loan portfolio. At December 31, 2009 the
indemnification claims was $275 million, which is reported in other liabilities on the Consolidat
REINSURANCE AGREEMENTS



We have two wholly-owned captive insurance subsidiaries which provide reinsurance to third-
These subsidiaries enter into various types of reinsurance agreements with third-party insurer
an excess of loss or quota share agreement up to 100% reinsurance. In excess of loss agreem
excess layer of coverage up to specified limits, once a defined first loss percentage is met. In
insurers share the responsibility for payment of all claims. Reserves were recognized for prob
2009 and $207 million at December 31, 2008. The aggregate maximum exposure up to the sp
of December 31, 2009.
Form 10-K • XBRL Rendering • Last update 3.10.2010
esponding XBRL tags and definitions*



                                                         12 Months Ended
                                                            Dec. 31, 2009
                                                            USD / shares

MMITMENTS AND GUARANTEES
DING AND OTHER COMMITMENTS


commitments at December 31, 2009 included private equity investments of $453 million and other investments of $66 million.
TTERS OF CREDIT



dby letters of credit and have risk participations in standby letters of credit and bankers’ acceptances issued by other financial institutions, in
 upport obligations of our customers to third parties, such as remarketing programs for customers’ variable rate demand notes. Net
andby letters of credit totaled $10.0 billion at December 31, 2009 and $10.3 billion at December 31, 2008. Based on PNC’s internal risk rating
 ndby letters of credit as of December 31, 2009, 86% of the net outstanding balance had internal credit ratings of pass, indicating the
of loss is currently low compared to 88% as of December 31, 2008, while 14% of the net outstanding balance as of December 31, 2009 had
 ings below pass, indicating a higher degree of risk of default compared to 12% as of December 31, 2008.



 fails to meet its financial or performance obligation to the third party under the terms of the contract or there is a need to support a
ogram, then upon the request of the guaranteed party, we would be obligated to make payment to them. The standby letters of credit and risk
n standby letters of credit and bankers’ acceptances outstanding on December 31, 2009 had terms ranging from less than 1 year to 9 years.
 maximum amount of future payments PNC could be required to make under outstanding standby letters of credit and risk participations in
 of credit and bankers’ acceptances was $13.1 billion at December 31, 2009, of which $6.1 billion support remarketing programs.



er 31, 2009, assets of approximately $1.0 billion secured certain specifically identified standby letters of credit. Approximately $3.1 billion in
sions from third parties was also available for this purpose as of December 31, 2009. In addition, a portion of the remaining standby letters of
 r of credit risk participations issued on behalf of specific customers is also secured by collateral or guarantees that secure the customers’
ns to us. The carrying amount of the liability for our obligations related to standby letters of credit and risk participations in standby letters of
kers’ acceptances was $270 million at December 31, 2009.


ND PURCHASE AGREEMENTS AND OTHER LIQUIDITY FACILITIES

standby bond purchase agreements to support municipal bond obligations. At December 31, 2009, the aggregate of our commitments under
 was $476 million. We also enter into certain other liquidity facilities to support individual pools of receivables acquired by commercial paper
 ing Market Street. At December 31, 2009, our total commitments under these facilities were $5.7 billion, of which $5.6 billion was related to

TIONS
 to numerous acquisition or divestiture agreements under which we have purchased or sold, or agreed to purchase or sell, various types of
agreements can cover the purchase or sale of:
               Entire businesses,
                 Loan portfolios,
                 Branch banks,
                 Partial interests in companies, or
                 Other types of assets.



 ents generally include indemnification provisions under which we indemnify the third parties to these agreements against a variety of risks to
d parties as a result of the transaction in question. When PNC is the seller, the indemnification provisions will generally also provide the buyer
 relating to the quality of the assets we are selling and the extent of any liabilities being assumed by the buyer. Due to the nature of these
n provisions, we cannot quantify the total potential exposure to us resulting from them.
demnification in connection with securities offering transactions in which we are involved. When we are the issuer of the securities, we provide
n to the underwriters or placement agents analogous to the indemnification provided to the purchasers of businesses from us, as described
we are an underwriter or placement agent, we provide a limited indemnification to the issuer related to our actions in connection with the
 there are other underwriters, indemnification to the other underwriters intended to result in an appropriate sharing of the risk of participating
 Due to the nature of these indemnification provisions, we cannot quantify the total potential exposure to us resulting from them.


certain types of agreements that include provisions for indemnifying third parties, such as:
                  Agreements relating to providing various servicing and processing functions to third parties,
                  Agreements relating to the creation of trusts or other legal entities to facilitate leasing transactions, commercial and
                  residential mortgage-backed securities transactions (loan securitizations) and certain other off-balance sheet transactions,

                  Confidentiality agreements,
                  Syndicated credit agreements, as a syndicate member,
                  Sales of individual loans and equipment leases,
                  Arrangements with brokers to facilitate the hedging of derivative and convertible arbitrage activities, and
                  Litigation settlement agreements.
ure of these indemnification provisions, we cannot calculate our aggregate potential exposure under them.

certain types of agreements, including leases, assignments of leases, and subleases, in which we agree to indemnify third parties for acts by
signees and/or sublessees, and employees. Due to the nature of these indemnification provisions, we cannot calculate our aggregate
sure under them.


contracts for the delivery of technology service in which we indemnify the other party against claims of patent and copyright infringement by
ue to the nature of these indemnification provisions, we cannot calculate our aggregate potential exposure under this type of indemnification.
certain insurance activities which require our employees to be bonded. We satisfy this bonding requirement by issuing letters of credit which
ant at December 31, 2009.

 course of business, we enter into contracts with third parties under which the third parties provide services on behalf of PNC. In many of
s, we agree to indemnify the third party service provider under certain circumstances. The terms of the indemnity vary from contract to
 e amount of the indemnification liability, if any, cannot be determined.


 ral or limited partner in certain asset management and investment limited partnerships, many of which contain indemnification provisions that
us to make payments in excess of our remaining funding commitments. While in certain of these partnerships the maximum liability to us is
 um of our unfunded commitments and partnership distributions received by us, in the others the indemnification liability is unlimited. As a
not determine our aggregate potential exposure for these indemnifications.




eir bylaws, PNC and its subsidiaries provide indemnification to directors, officers and, in some cases, employees and agents against certain
 ed as a result of their service on behalf of or at the request of PNC and its subsidiaries. PNC and its subsidiaries also advance on behalf of
 uals costs incurred in connection with certain claims or proceedings, subject to written undertakings by each such individual to repay all
nced if it is ultimately determined that the individual is not entitled to indemnification. We generally are responsible for similar indemnifications
 ent obligations that companies we acquire had to their officers, directors and sometimes employees and agents at the time of acquisition.
such costs on behalf of several such individuals with respect to pending litigation or investigations during 2009. It is not possible for us to
aggregate potential exposure resulting from the obligation to provide this indemnity or to advance such costs.

with the lending of securities facilitated by Global Investment Servicing as an intermediary on behalf of certain of its clients, we provide
n to those clients against the failure of the borrowers to return the securities. The market value of the securities lent is fully secured on a daily
e, the exposure to us is limited to temporary shortfalls in the collateral as a result of short-term fluctuations in trading prices of the loaned
December 31, 2009, the total maximum potential exposure as a result of these indemnity obligations was $7.5 billion, although the collateral at
 ded that amount.
 IFICATION


 ervices business issues and acquires credit and debit card transactions through Visa U.S.A. Inc. card association or its affiliates (Visa).
 7 Visa completed a restructuring and issued shares of Visa Inc. common stock to its financial institution members (Visa Reorganization) in
 of its initial public offering (IPO). As part of the Visa Reorganization, we received our proportionate share of a class of Visa Inc. common
  to the US members. Prior to the IPO, the US members, which included PNC, were obligated to indemnify Visa for judgments and
 ated to the specified litigation. We continue to have an obligation to indemnify Visa for judgments and settlements for the remaining specified


he acquisition of National City, we became party to judgment and loss sharing agreements with Visa and certain other banks. The judgment
ng agreements were designed to apportion financial responsibilities arising from any potential adverse judgment or negotiated settlements
 pecified litigation.



 isa funded $700 million to an escrow account and reduced the conversion ratio of Visa B to A shares. We consequently recognized our
 million share of the $700 million as a reduction of our indemnification liability and a reduction of noninterest expense.

mnification liability included on our Consolidated Balance Sheet at December 31, 2009 totaled $194 million as a result of the indemnification
 ction 2.05j of the Visa By-Laws and/or the indemnification provided through the judgment and loss sharing agreements. Any ultimate
e specified Visa litigation may be different than this amount.
AGREEMENTS
 zed to underwrite, originate, fund, sell and service commercial mortgage loans and then sell them to FNMA under FNMA’s DUS program.
ar arrangements with FHLMC.



 ograms, we generally assume up to one-third of the risk of loss on unpaid principal balances through a loss share arrangement. At
 2009, the potential exposure to loss was $6.0 billion. Accordingly, we maintain a reserve for such potential losses which approximates the
 s exposure. At December 31, 2009, the unpaid principal balance outstanding of loans sold as a participant in these programs was $19.7
proximate fair value of the loss share arrangement in the form of reserves for losses under these programs, totaled $71 million as of
 2009 and is included in other liabilities on our Consolidated Balance Sheet. If payment is required under these programs, we would not have
nterest in the collateral underlying the mortgage loans on which losses occurred, although the value of the collateral is taken into account in
 r share of such losses. The serviced loans are not included on our Consolidated Balance Sheet.



ntial mortgage loans pursuant to agreements which contain representations concerning subjects such as credit information, loan
, collateral, and insurability. Prior to the acquisition, National City also sold home equity loans/lines of credit pursuant to such agreements.
asis, investors may request PNC to indemnify them against losses on certain loans or to repurchase loans which the investors believe do not
 plicable representations. During 2009 the frequency of such requests increased in relation to prior years. This increase was driven by higher
cies, resulting from deterioration in overall economic conditions and trends, particularly those impacting the residential housing sector.


 on of its own investigation as to the validity of the claim, PNC will repurchase or provide indemnification on such loans. This may take the
 ight repurchase of the loan or a settlement payment to the investor. If the loan is repurchased it is properly considered in our nonperforming
es and statistics. Indemnification requests are generally received within two years subsequent to the date of sale.



maintains a liability for estimated losses on loans expected to be repurchased, or on which indemnification is expected to be provided, and
 ates the adequacy of this recourse liability based on trends in repurchase and indemnification requests, actual loss experience, known and
 n the loans, and current economic conditions. As part of its evaluation of the adequacy of this recourse liability, management considers
 projections over the life of the subject loan portfolio. At December 31, 2009 the liability for estimated losses on repurchase and
n claims was $275 million, which is reported in other liabilities on the Consolidated Balance Sheet.
 E AGREEMENTS



wholly-owned captive insurance subsidiaries which provide reinsurance to third-party insurers related to insurance sold to our customers.
aries enter into various types of reinsurance agreements with third-party insurers where the subsidiary assumes the risk of loss through either
oss or quota share agreement up to 100% reinsurance. In excess of loss agreements, these subsidiaries assume the risk of loss for an
  coverage up to specified limits, once a defined first loss percentage is met. In quota share agreements, the subsidiaries and third-party
 the responsibility for payment of all claims. Reserves were recognized for probable losses on these policies of $220 million at December 31,
  million at December 31, 2008. The aggregate maximum exposure up to the specified limits for all reinsurance contracts was $1.7 billion as
 1, 2009.

				
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