

	Commercial and industrial				Real estate				Financial institutions				Government agencies				Other				Total retained loans
(in millions)	Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010
Impaired loans
With an allowance	$	1,018	$	1,512	$	850	$	2,510	$	37	$	127	$	17	$	22	$	645	$	697	$	2,567	$	4,868
Without an allowance^(a)	103		157		314		445		23		8		—		—		46		8		486		618
Total impaired loans	$	1,121	$	1,669	$	1,164	$	2,955	$	60	$	135	$	17	$	22	$	691	$	705	$	3,053	$	5,486
Allowance for loan losses related to impaired loans	$	256	$	435	$	209	$	825	$	7	$	61	$	12	$	14	$	186	$	239	$	670	$	1,574
Unpaid principal balance of impaired loans^(b)	1,798		2,453		1,538		3,487		115		244		18		30		1,017		1,046		4,486		7,260


(a)	When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, then the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged-off and/or there have been interest payments received and applied to the loan balance.


(b)	Represents the contractual amount of principal owed at September 30, 2011, and December 31, 2010. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs; interest payments received and applied to the carrying value; net deferred loan fees or costs; and unamortized discount or premiums on purchased loans.

Loans modified in troubled debt restructuring



	Three months ended September 30,				Nine months ended September 30,
(in millions)	2011		2010		2011		2010
Commercial and industrial	$	1,205	$	1,544	$	1,395	$	1,674
Real estate	1,258		3,251		2,034		3,231
Financial institutions	62		224		76		335
Government agencies	18		—		21		3
Other	634		725		634		864
Total^(a)	$	3,177	$	5,744	$	4,160	$	6,107


(a)	The related interest income on accruing impaired loans and interest income recognized on a cash basis were not material for the three and nine months ended September 30, 2011 and 2010.



	Commercial and industrial				Real estate				Financial institutions				Government agencies				Other				Total retained loans
(in millions)	Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010
Loans modified in troubled debt restructurings	$	625	$	212	$	261	$	907	$	2	$	1	$	17	$	22	$	23	$	1	$	928	$	1,143
TDRs on nonaccrual status	574		163		243		831		—		1		17		22		19		1		853		1,018
Additional commitments to lend to borrowers whose loans have been modified in TDRs	220		1		—		—		—		—		—		—		—		—		220		1

TDR activity rollforward



	Three months ended September 30, 2011												Nine months ended September 30, 2011
(in millions)	Commercial and industrial			Real estate			Other^(c)			Total			Commercial and industrial			Real estate			Other^(c)			Total
Beginning balance of TDRs	$	683		$	289		$	28		$	1,000		$	212		$	907		$	24		$	1,143
New TDRs^(a)	60			43			20			123			642			103			26			771
Increases to existing TDRs	—			—			—			—			19			4			—			23
Charge-offs post-modification	(13		)	(1		)	—			(14		)	(19		)	(143		)	—			(162		)
Sales and other^(b)	(105		)	(70		)	(6		)	(181		)	(229		)	(610		)	(8		)	(847		)
Ending balance of TDRs	$	625		$	261		$	42		$	928		$	625		$	261		$	42		$	928


(a)	New TDRs are predominantly term or payment extensions but also may include interest rate reductions and deferrals of principal and/or interest payments.


(b)	Sales and other are predominantly sales and paydowns, but may include performing loans restructured at market rates that are no longer reported as TDRs.


(c)	Includes loans to Financial institutions, Government agencies and Other.

Schedule of loans recorded, credit quality indicator



Financial institutions						Government agencies						Other^(d)						Total retained loans
September 30, 2011			December 31, 2010			September 30, 2011			December 31, 2010			September 30, 2011			December 31, 2010			September 30, 2011			December 31, 2010

$	26,674		$	22,525		$	7,245		$	6,871		$	68,965		$	56,450		$	175,855		$	146,047

8,571			8,480			285			382			6,643			6,012			69,378			62,173
203			317			4			3			627			320			7,555			8,780
57			136			17			22			688			781			3,011			5,510
8,831			8,933			306			407			7,958			7,113			79,944			76,463
$	35,505		$	31,458		$	7,551		$	7,278		$	76,923		$	63,563		$	255,799		$	222,510
0.73		%	1.44		%	0.28		%	0.34		%	1.71		%	1.73		%	4.13		%	6.42		%
0.16			0.43			0.23			0.30			0.89			1.23			1.18			2.48

$	27,266		$	19,756		$	903		$	870		$	32,373		$	25,831		$	87,199		$	66,151
8,239			11,702			6,648			6,408			44,550			37,732			168,600			156,359
$	35,505		$	31,458		$	7,551		$	7,278		$	76,923		$	63,563		$	255,799		$	222,510


$	35,438		$	31,289		$	7,532		$	7,222		$	75,494		$	61,837		$	251,735		$	215,148
10			31			2			34			676			704			915			1,493
—			2			—			—			65			241			138			359
57			136			17			22			688			781			3,011			5,510
$	35,505		$	31,458		$	7,551		$	7,278		$	76,923		$	63,563		$	255,799		$	222,510



	Commercial and industrial						Real estate
(in millions, except ratios)	September 30, 2011			December 31, 2010			September 30, 2011			December 31, 2010
Loans by risk ratings
Investment grade	$	41,735		$	31,697		$	31,236		$	28,504
Noninvestment grade:
Noncriticized	37,087			30,874			16,792			16,425
Criticized performing	2,332			2,371			4,389			5,769
Criticized nonaccrual	1,070			1,634			1,179			2,937
Total noninvestment grade	40,489			34,879			22,360			25,131
Total retained loans	$	82,224		$	66,576		$	53,596		$	53,635
% of total criticized to total retained loans	4.14		%	6.02		%	10.39		%	16.23		%
% of nonaccrual loans to total retained loans	1.30			2.45			2.20			5.48
Loans by geographic distribution^(a)
Total non-U.S.	$	24,987		$	17,731		$	1,670		$	1,963
Total U.S.	57,237			48,845			51,926			51,672
Total retained loans	$	82,224		$	66,576		$	53,596		$	53,635

Loan delinquency^(b)
Current and less than 30 days past due and still accruing	$	81,049		$	64,501		$	52,222		$	50,299
30–89 days past due and still accruing	104			434			123			290
90 or more days past due and still accruing^(c)	1			7			72			109
Criticized nonaccrual	1,070			1,634			1,179			2,937
Total retained loans	$	82,224		$	66,576		$	53,596		$	53,635


(a)	U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.


(b)	Credit quality of wholesale loans is assessed primarily through ongoing review and monitoring of an obligor's ability to meet contractual obligations rather than relying on the past due status, which is generally a lagging indicator of credit quality. For a discussion of more significant risk factors, see Note 14 on page 223 of JPMorgan Chase’s 2010 Annual Report.


(c)	Represents loans that are 90 days or more past due as to principal and/or interest, but that are still accruing interest; these loans are considered well-collateralized.


(d)	Other primarily includes loans to special purpose entities and loans to private banking clients. See Note 1 on pages 164–165 of the Firm’s 2010 Annual Report for additional information on special-purpose entities (“SPEs”).

Consumer Excluding Credit Card

Consumer loans by class, excluding credit card loan portfolio segment



(in millions)	September 30, 2011		December 31, 2010
Residential real estate – excluding PCI
Home equity:
Senior lien	$	22,364	$	24,376
Junior lien	57,914		64,009
Mortgages:
Prime, including option ARMs	74,230		74,539
Subprime	10,045		11,287
Other consumer loans
Auto	46,659		48,367
Business banking	17,272		16,812
Student and other	14,492		15,311
Residential real estate – PCI
Home equity	23,105		24,459
Prime mortgage	15,626		17,322
Subprime mortgage	5,072		5,398
Option ARMs	23,325		25,584
Total retained loans	$	310,104	$	327,464

Consumer Excluding Credit Card | Residential real estate, excluding PCI [Member]

Nature and extent of modifications

TDR activity rollforward



	Three months ended September 30, 2011
	Home equity						Mortgages						Total residential real estate – (excluding PCI)
(in millions)	Senior lien			Junior lien			Prime, including option ARMs			Subprime			Total residential real estate – (excluding PCI)
Beginning balance of TDRs	$	261		$	517		$	3,390		$	2,843		$	7,011
New TDRs	21			117			1,116			271			1,525
Charge-offs post-modification	(2		)	(13		)	(24		)	(54		)	(93		)
Foreclosures and other liquidations (e.g., short sales)	—			(1		)	(28		)	(25		)	(54		)
Principal payments and other	(5		)	(14		)	(78		)	(28		)	(125		)
Ending balance of TDRs	$	275		$	606		$	4,376		$	3,007		$	8,264



	Nine months ended September 30, 2011
	Home equity						Mortgages						Total residential real estate – (excluding PCI)
(in millions)	Senior lien			Junior lien			Prime, including option ARMs			Subprime			Total residential real estate – (excluding PCI)
Beginning balance of TDRs	$	226		$	283		$	2,084		$	2,751		$	5,344
New TDRs	67			410			2,614			559			3,650
Charge-offs post-modification	(8		)	(48		)	(77		)	(168		)	(301		)
Foreclosures and other liquidations (e.g., short sales)	—			(6		)	(67		)	(60		)	(133		)
Principal payments and other	(10		)	(33		)	(178		)	(75		)	(296		)
Ending balance of TDRs	$	275		$	606		$	4,376		$	3,007		$	8,264



	Three months ended September 30, 2011
	Home equity				Mortgages
	Senior lien		Junior lien		Prime, including option ARMs		Subprime		Total residential real estate – (excluding PCI)
Number of loans modified	262		2,555		2,772		1,963		7,552
Concession granted^(a)(b):
Interest rate reduction	77	%	94	%	89	%	77	%	87	%
Term or payment extension	98		85		94		83		88
Principal and/or interest deferred	15		22		19		19		20
Principal forgiveness	10		17		2		11		10
Other^(c)	29		8		67		26		35



	Nine months ended September 30, 2011
	Home equity				Mortgages
	Senior lien		Junior lien		Prime, including option ARMs		Subprime		Total residential real estate – (excluding PCI)
Number of loans modified	789		7,811		8,470		4,048		21,118
Concession granted^(a)(b):
Interest rate reduction	80	%	95	%	48	%	80	%	73	%
Term or payment extension	88		83		71		75		77
Principal and/or interest deferred	8		21		13		19		17
Principal forgiveness	8		22		1		9		11
Other^(c)	37		8		74		28		40

(a) As a percentage of the number of loans modified.

(b) The sum of the percentages exceeds 100% because predominantly all of the loan modifications include more than one type of concession.

Financial effects of modifications and redefaults



Three months ended September 30, 2011 (in millions, except weighted-average data and number of loans)	Home equity						Mortgages						Total residential real estate – (excluding PCI)
	Senior lien			Junior lien			Prime, including option ARMs			Subprime			Total residential real estate – (excluding PCI)
Weighted-average interest rate of loans with interest rate reductions – before TDR	7.39		%	5.49		%	5.86		%	8.25		%	6.32		%
Weighted-average interest rate of loans with interest rate reductions – after TDR	3.88			1.55			3.88			3.41			3.56
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	19			21			25			23			24
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	31			34			36			33			35
Charge-offs recognized upon modification	$	1		$	32		$	10		$	5		$	48
Principal deferred	1			10			55			26			92
Principal forgiven	—			14			4			15			33
Number of loans that redefaulted within one year of modification^(a)	56			407			292			419			1,174
Loans that redefaulted within one year of modification^(a)	$	4		$	18		$	94		$	52		$	168



Nine months ended September 30, 2011 (in millions, except weighted-average data and number of loans)	Home equity						Mortgages						Total residential real estate – (excluding PCI)
	Senior lien			Junior lien			Prime, including option ARMs			Subprime			Total residential real estate – (excluding PCI)
Weighted-average interest rate of loans with interest rate reductions – before TDR	7.35		%	5.48		%	5.99		%	8.25		%	6.44		%
Weighted-average interest rate of loans with interest rate reductions – after TDR	3.67			1.48			3.51			3.49			3.20
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	18			21			25			23			24
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	31			35			35			34			35
Charge-offs recognized upon modification	$	1		$	106		$	44		$	13		$	164
Principal deferred	2			30			109			48			189
Principal forgiven	1			58			7			25			91
Number of loans that redefaulted within one year of modification^(a)	144			801			890			1,601			3,436
Loans that redefaulted within one year of modification^(a)	$	12		$	36		$	262		$	234		$	544

(a) Represents loans modified in TDRs that experienced a payment default in the period presented, and for which the payment default occurred within one year of the modification. The dollar amounts presented represent the balance of such loans at the end of the reporting period in which they defaulted. For residential real estate loans modified in TDRs, payment default is deemed to occur when the loan becomes two contractual payments past due. In the event that a modified loan redefaults, it is probable that the loan will ultimately be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last 12 months may not be representative of ultimate redefault levels.

Consumer Excluding Credit Card | Total other consumer [Member]

TDR activity rollforward



	Three months ended September 30, 2011									Nine months ended September 30, 2011
(in millions)	Auto			Business banking			Total other consumer			Auto			Business banking			Total other consumer
Beginning balance of TDRs	$	88		$	429		$	517		$	91		$	395		$	486
New TDRs	13			48			61			38			166			204
Charge-offs	(1		)	(5		)	(6		)	(4		)	(7		)	(11		)
Foreclosures and other liquidations	—			(1		)	(1		)	—			(3		)	(3		)
Principal payments and other	(14		)	(41		)	(55		)	(39		)	(121		)	(160		)
Ending balance of TDRs	$	86		$	430		$	516		$	86		$	430		$	516

Credit Card



	Chase, excluding Washington Mutual portfolio				Washington Mutual portfolio				Total credit card
(in millions)	Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010
Impaired loans with an allowance^(a)(b)
Credit card loans with modified payment terms^(c)	$	5,373	$	6,685	$	1,225	$	1,570	$	6,598	$	8,255
Modified credit card loans that have reverted to pre-modification payment terms^(d)	998		1,439		224		311		1,222		1,750
Total impaired loans	$	6,371	$	8,124	$	1,449	$	1,881	$	7,820	$	10,005
Allowance for loan losses related to impaired loans	$	2,447	$	3,175	$	605	$	894	$	3,052	$	4,069


(a)	The carrying value and the unpaid principal balance are the same for credit card impaired loans.


(b)	There were no impaired loans without an allowance.


(c)	Represents credit card loans outstanding to borrowers enrolled in a credit card modification program as of the date presented.

(d)

Represents credit card loans that were modified in TDRs but that have subsequently reverted back to the loans’ pre-modification payment terms. At September 30, 2011, and December 31, 2010, approximately $804 million and $1.2 billion, respectively, of loans have reverted back to the pre-modification payment terms of the loans due to noncompliance with the terms of the modified loans. Based on the Firm’s historical experience a substantial portion of these loans is expected to be charged-off in accordance with the Firm’s standard charge-off policy. The remaining $418 million and $590 million at September 30, 2011, and December 31, 2010, respectively, of these loans are to borrowers who have successfully completed a short-term modification program. The Firm continues to report these loans as TDRs since the borrowers’ credit lines remain closed.

Nature and extent of modifications



	Average impaired loans								Interest income on impaired loans^(a)
	Three months ended September 30,				Nine months ended September 30,				Three months ended September 30,				Nine months ended September 30,
(in millions)	2011		2010		2011		2010		2011		2010		2011		2010
Chase, excluding Washington Mutual portfolio	$	6,629	$	8,743	$	7,178	$	8,872	$	87	$	123	$	282	$	363
Washington Mutual portfolio	1,513		2,002		1,651		1,998		24		32		80		94
Total credit card	$	8,142	$	10,745	$	8,829	$	10,870	$	111	$	155	$	362	$	457

(a)

As permitted by regulatory guidance, credit card loans are generally exempt from being placed on nonaccrual status; accordingly, interest and fees related to credit card loans continue to accrue until the loan is charged off or paid in full. However, the Firm separately establishes an allowance for the estimated uncollectible portion of billed and accrued interest and fee income on credit card loans.

New enrollments



	September 30, 2011
	Chase, excluding Washington Mutual portfolio				Washington Mutual portfolio				Total credit card
(in millions)	Short-term programs		Long-term programs		Short-term programs		Long-term programs		Short-term programs		Long-term programs
Three months ended	$	30	$	470	$	6	$	98	$	36	$	568
Nine months ended	104		1,652		20		361		124		2,013

Financial effects of modifications and redefaults



	Three months ended September 30, 2011
(in millions, except weighted-average data)	Chase, excluding Washington Mutual portfolio			Washington Mutual portfolio			Total credit card
Weighted-average interest rate of loans – before TDR	14.79		%	21.20		%	15.89		%
Weighted-average interest rate of loans – after TDR	5.00			6.36			5.23
Loans that redefaulted within one year of modification ^(a)	$	125		$	29		$	154



	Nine months ended September 30, 2011
(in millions, except weighted-average data)	Chase, excluding Washington Mutual portfolio			Washington Mutual portfolio			Total credit card
Weighted-average interest rate of loans – before TDR	14.98		%	21.51		%	16.15		%
Weighted-average interest rate of loans – after TDR	4.98			6.33			5.22
Loans that redefaulted within one year of modification^(a)	$	454		$	104		$	558


(a)	Represents loans modified in TDRs that experienced a payment default in the period presented, and for which the payment default occurred within one year of the modification. The amounts presented represent the balance of such loans as of the end of the quarter in which they defaulted.

Schedule of loans recorded, credit quality indicator



	Chase, excluding Washington Mutual portfolio^(c)						Washington Mutual portfolio^(c)						Total credit card^(c)
(in millions, except ratios)	Sep 30, 2011			Dec 31, 2010			Sep 30, 2011			Dec 31, 2010			Sep 30, 2011			Dec 31, 2010
Loan delinquency^(a)
Current and less than 30 days past due and still accruing	$	112,636		$	117,248		$	10,723		$	12,670		$	123,359		$	129,918
30–89 days past due and still accruing	1,547			2,092			315			459			1,862			2,551
90 or more days past due and still accruing	1,487			2,449			331			604			1,818			3,053
Nonaccrual loans	2			2			—			—			2			2
Total retained loans	$	115,672		$	121,791		$	11,369		$	13,733		$	127,041		$	135,524
Loan delinquency ratios
% of 30+ days past due to total retained loans	2.62		%	3.73		%	5.68		%	7.74		%	2.90		%	4.14		%
% of 90+ days past due to total retained loans	1.29			2.01			2.91			4.40			1.43			2.25
Credit card loans by geographic region
California	$	14,695		$	15,454		$	2,181		$	2,650		$	16,876		$	18,104
New York	9,300			9,540			861			1,032			10,161			10,572
Texas	8,985			9,217			841			1,006			9,826			10,223
Florida	6,310			6,724			951			1,165			7,261			7,889
Illinois	6,802			7,077			453			542			7,255			7,619
New Jersey	4,913			5,070			409			494			5,322			5,564
Ohio	4,684			5,035			330			401			5,014			5,436
Pennsylvania	4,194			4,521			354			424			4,548			4,945
Michigan	3,669			3,956			226			273			3,895			4,229
Virginia	2,882			3,020			245			295			3,127			3,315
Georgia	2,625			2,834			325			398			2,950			3,232
Washington	2,006			2,053			369			438			2,375			2,491
All other	44,607			47,290			3,824			4,615			48,431			51,905
Total retained loans	$	115,672		$	121,791		$	11,369		$	13,733		$	127,041		$	135,524
Percentage of portfolio based on carrying value with estimated refreshed FICO scores^(b)
Equal to or greater than 660	83.6		%	80.6		%	61.6		%	56.4		%	81.5		%	77.9		%
Less than 660	16.4			19.4			38.4			43.6			18.5			22.1

(a)

The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. Under guidance issued by the FFIEC, credit card loans are charged off by the end of the month in which the account becomes 180 days past due or within 60 days from receiving notification about a specified event (e.g., bankruptcy of the borrower), whichever is earlier.


(b)	Refreshed FICO scores are estimated based on a statistically significant random sample of credit card accounts in the credit card portfolio for the period shown. The Firm obtains refreshed FICO scores at least quarterly.


(c)	Includes billed finance charges and fees net of an allowance for uncollectible amounts.

Home Equity Junior Lien [Member]

Schedule of loans recorded, credit quality indicator



	Delinquencies
September 30, 2011 (in millions, except ratios)	30–89 days past due		90–149 days past due		150+ days past due		Total loans		Total 30+ day delinquency rate
HELOCs:^(a)
Within the revolving period^(b)	$	660	$	285	$	160	$	49,312	2.24	%
Within the required amortization period	46		17		13		1,541		4.93
HELOANs	203		110		41		7,061		5.01
Total	$	909	$	412	$	214	$	57,914	2.65	%



	Delinquencies
December 31, 2010 (in millions, except ratios)	30–89 days past due		90–149 days past due		150+ days past due		Total loans		Total 30+ day delinquency rate
HELOCs:^(a)
Within the revolving period^(b)	$	665	$	384	$	145	$	54,434	2.19	%
Within the required amortization period	41		19		10		1,177		5.95
HELOANs	250		149		31		8,398		5.12
Total	$	956	$	552	$	186	$	64,009	2.65	%

(a) In general, HELOCs are open-ended, revolving loans for a 10-year period, after which time the HELOC converts to a loan with a 20-year amortization period.

(b) The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are experiencing financial difficulty or when the collateral does not support the loan amount.

Residential real estate, excluding PCI [Member]



	Home equity								Mortgages
	Senior lien				Junior lien				Prime, including option ARMs				Subprime				Total residential real estate – excluding PCI
(in millions)	Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010
Impaired loans
With an allowance	$	258	$	211	$	574	$	258	$	3,814	$	1,525	$	2,833	$	2,563	$	7,479	$	4,557
Without an allowance^(a)	17		15		32		25		562		559		174		188		785		787
Total impaired loans^(b)	$	275	$	226	$	606	$	283	$	4,376	$	2,084	$	3,007	$	2,751	$	8,264	$	5,344
Allowance for loan losses related to impaired loans	$	93	$	77	$	177	$	82	$	77	$	97	$	452	$	555	$	799	$	811
Unpaid principal balance of impaired loans^(c)	343		265		871		402		5,479		2,751		4,409		3,777		11,102		7,195
Impaired loans on nonaccrual status	48		38		201		63		738		534		752		632		1,739		1,267


(a)	When discounted cash flows or collateral value equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically occurs when an impaired loan has been partially charged off.

(b)

At September 30, 2011, and December 31, 2010, $3.8 billion and $3.0 billion, respectively, of loans modified subsequent to repurchase from Ginnie Mae in accordance with the standards of the appropriate government agency (i.e., Federal Housing Administration (“FHA”), U.S. Department of Veterans Affairs (“VA”), Rural Housing Services (“RHS”)) were excluded from loans accounted for as TDRs. When such loans perform subsequent to modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform become subject to foreclosure.


(c)	Represents the contractual amount of principal owed at September 30, 2011, and December 31, 2010. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs; net deferred loan fees or costs; and unamortized discounts or premiums on purchased loans.

Schedule of loans recorded, credit quality indicator



Three months ended September 30,	Average impaired loans				Interest income on impaired loans^(a)				Interest income on impaired loans on a cash basis^(a)
(in millions)	2011		2010		2011		2010		2011		2010
Home equity
Senior lien	$	268	$	219	$	3	$	5	$	—	$	—
Junior lien	568		261		4		1		1		—
Mortgages
Prime, including option ARMs	4,089		1,741		42		19		4		5
Subprime	2,931		2,685		39		31		5		5
Total residential real estate – excluding PCI	$	7,856	$	4,906	$	88	$	56	$	10	$	10



Nine months ended September 30,	Average impaired loans				Interest income on impaired loans^(a)				Interest income on impaired loans on a cash basis^(a)
(in millions)	2011		2010		2011		2010		2011		2010
Home equity
Senior lien	$	248	$	202	$	8	$	10	$	1	$	1
Junior lien	464		262		12		9		2		1
Mortgages
Prime, including option ARMs	3,267		1,363		101		48		10		10
Subprime	2,823		2,457		110		87		11		15
Total residential real estate – excluding PCI	$	6,802	$	4,284	$	231	$	154	$	24	$	27

(a) Generally, interest income on loans modified in a TDR is recognized on a cash basis until such time as the borrower has made a minimum of six payments under the new terms. As of September 30, 2011 and 2010, $997 million and $933 million, respectively, of loans were TDRs for which the borrowers had not yet made six payments under their modified terms.



Residential real estate – excluding PCI loans
	Home equity
	Senior lien						Junior lien
(in millions, except ratios)	September 30, 2011			December 31, 2010			September 30, 2011			December 31, 2010
Loan delinquency^(a)
Current and less than 30 days past due	$	21,621		$	23,615		$	56,379		$	62,315
30–149 days past due	387			414			1,321			1,508
150 or more days past due	356			347			214			186
Total retained loans	$	22,364		$	24,376		$	57,914		$	64,009
% of 30+ days past due to total retained loans	3.32		%	3.12		%	2.65		%	2.65		%
90 or more days past due and still accruing	$	—		$	—		$	—		$	—
90 or more days past due and government guaranteed^(b)	—			—			—			—
Nonaccrual loans	479			479			811			784
Current estimated LTV ratios^(c)(d)(e)(f)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	319		$	363		$	6,248		$	6,928
Less than 660	162			196			2,109			2,495
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	654			619			9,014			9,403
Less than 660	253			249			2,665			2,873
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	1,867			1,900			11,869			13,333
Less than 660	635			657			2,770			3,155
Less than 80% and refreshed FICO scores:
Equal to or greater than 660	15,819			17,474			20,223			22,527
Less than 660	2,655			2,918			3,016			3,295
U.S. government-guaranteed	—			—			—			—
Total retained loans	$	22,364		$	24,376		$	57,914		$	64,009
Geographic region
California	$	3,135		$	3,348		$	13,276		$	14,656
New York	3,060			3,272			11,251			12,278
Florida	1,011			1,088			3,111			3,470
Illinois	1,530			1,635			3,900			4,248
Texas	3,160			3,594			1,950			2,239
New Jersey	701			732			3,324			3,617
Arizona	1,367			1,481			2,648			2,979
Washington	728			776			1,964			2,142
Ohio	1,814			2,010			1,385			1,568
Michigan	1,075			1,176			1,454			1,618
All other^(g)	4,783			5,264			13,651			15,194
Total retained loans	$	22,364		$	24,376		$	57,914		$	64,009

(a) Individual delinquency classifications included mortgage loans insured by U.S. government agencies as follows: current and less than 30 days past due includes $3.1 billion and $2.5 billion; 30–149 days past due includes $2.1 billion and $2.5 billion; and 150 or more days past due includes $8.4 billion and $7.9 billion at September 30, 2011, and December 31, 2010, respectively.

(b)

These balances, which are 90 days or more past due but insured by U.S. government agencies, are excluded from nonaccrual loans. In predominately all cases, 100% of the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed servicing guidelines. These amounts are excluded from nonaccrual loans because reimbursement of insured and guaranteed amounts is proceeding normally. At September 30, 2011, and December 31, 2010, these balances included $5.9 billion and $2.8 billion, respectively, of loans that are no longer accruing interest because interest has been curtailed by the U.S. government agencies although, in predominantly all cases, 100% of the principal is still insured. For the remaining balance, interest is being accrued at the guaranteed reimbursement rate.

(c)

Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models utilizing nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates.


(d)	Junior lien represents combined LTV, which considers all available lien positions related to the property. All other products are presented without consideration of subordinate liens on the property.


(e)	Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm at least on a quarterly basis.


(f)	For senior lien home equity loans, prior-period amounts have been revised to conform with the current-period presentation.


(g)	At September 30, 2011, and December 31, 2010, included mortgage loans insured by U.S. government agencies of $13.6 billion and $12.9 billion, respectively.


(h)	At September 30, 2011, and December 31, 2010, excluded mortgage loans insured by U.S. government agencies of $10.5 billion and $10.3 billion, respectively. These amounts were excluded as reimbursement of insured amounts is proceeding normally.

(table continued from previous page)



Mortgages
Prime, including option ARMs								Subprime						Total residential real estate – excluding PCI
September 30, 2011				December 31, 2010				September 30, 2011			December 31, 2010			September 30, 2011				December 31, 2010

$	59,772			$	59,223			$	7,848		$	8,477		$	145,620			$	153,630
3,304				4,052				844			1,184			5,856				7,158
11,154				11,264				1,353			1,626			13,077				13,423
$	74,230			$	74,539			$	10,045		$	11,287		$	164,553			$	174,211
5.39		%	^(h)	6.68		%	^(h)	21.87		%	24.90		%	5.15		%	^(h)	5.88		%	^(h)
$	—			$	—			$	—		$	—		$	—			$	—
9,505				9,417				—			—			9,505				9,417
3,656				4,320				1,932			2,210			6,878				7,793


$	2,901			$	3,039			$	349		$	338		$	9,817			$	10,668
1,321				1,595				1,072			1,153			4,664				5,439

4,708				4,733				504			506			14,880				15,261
1,735				1,775				1,349			1,486			6,002				6,383

9,767				10,720				835			925			24,338				26,878
2,432				2,786				1,656			1,955			7,493				8,553

33,382				32,385				2,003			2,252			71,427				74,638
4,373				4,557				2,277			2,672			12,321				13,442
13,611				12,949				—			—			13,611				12,949
$	74,230			$	74,539			$	10,045		$	11,287		$	164,553			$	174,211

$	18,141			$	19,278			$	1,527		$	1,730		$	36,079			$	39,012
9,966				9,587				1,258			1,381			25,535				26,518
4,617				4,840				1,257			1,422			9,996				10,820
3,894				3,765				407			468			9,731				10,116
2,795				2,569				310			345			8,215				8,747
2,027				2,026				473			534			6,525				6,909
1,218				1,320				208			244			5,441				6,024
1,918				2,056				219			247			4,829				5,221
453				462				242			275			3,894				4,315
926				963				256			294			3,711				4,051
28,275				27,673				3,888			4,347			50,597				52,478
$	74,230			$	74,539			$	10,045		$	11,287		$	164,553			$	174,211

Total other consumer [Member]



	Auto				Business banking				Total other consumer^(c)
(in millions)	Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010		Sep 30, 2011		Dec 31, 2010
Impaired loans
With an allowance	$	86	$	102	$	745	$	774	$	831	$	876
Without an allowance^(a)	1		—		—		—		1		—
Total impaired loans	$	87	$	102	$	745	$	774	$	832	$	876
Allowance for loan losses related to impaired loans	$	12	$	16	$	205	$	248	$	217	$	264
Unpaid principal balance of impaired loans^(b)	122		132		858		899		980		1,031
Impaired loans on nonaccrual status	38		50		589		647		627		697


(a)	When discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, then the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged off and/or there have been interest payments received and applied to the loan balance.


(b)	Represents the contractual amount of principal owed at September 30, 2011, and December 31, 2010. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs; interest payments received and applied to the principal balance; net deferred loan fees or costs; and unamortized discounts or premiums on purchased loans.


(c)	There were no impaired student and other loans at September 30, 2011, and December 31, 2010.

Loans modified in troubled debt restructuring



	Average impaired loans^(b)
	Three months ended September 30,				Nine months ended September 30,
(in millions)	2011		2010		2011		2010
Auto	$	88	$	117	$	93	$	125
Business banking	751		786		762		647
Total other consumer^(a)	$	839	$	903	$	855	$	772


(a)	There were no impaired student and other loans at September 30, 2011 and 2010.


(b)	The related interest income on impaired loans, including those on a cash basis, was not material for the three and nine months ended September 30, 2011 and 2010.



	Auto				Business banking				Total other consumer^(c)
(in millions)	September 30, 2011		December 31, 2010		September 30, 2011		December 31, 2010		September 30, 2011		December 31, 2010
Loans modified in troubled debt restructurings^(a)(b)	$	86	$	91	$	430	$	395	$	516	$	486
TDRs on nonaccrual status	37		39		274		268		311		307


(a)	These modifications generally provided interest rate concessions to the borrower or deferral of principal repayments.


(b)	Additional commitments to lend to borrowers whose loans have been modified in TDRs as of September 30, 2011, and December 31, 2010, were immaterial.


(c)	There were no student and other loans modified in TDRs at September 30, 2011, and December 31, 2010.

Schedule of loans recorded, credit quality indicator



	Auto						Business banking						Student and other								Total other consumer
(in millions, except ratios)	Sep 30, 2011			Dec 31, 2010			Sep 30, 2011			Dec 31, 2010			Sep 30, 2011				Dec 31, 2010				Sep 30, 2011				Dec 31, 2010
Loan delinquency^(a)
Current and less than 30 days past due	$	46,188		$	47,778		$	16,798		$	16,240		$	13,222			$	13,998			$	76,208			$	78,016
30–119 days past due	465			579			303			351			804				795				1,572				1,725
120 or more days past due	6			10			171			221			466				518				643				749
Total retained loans	$	46,659		$	48,367		$	17,272		$	16,812		$	14,492			$	15,311			$	78,423			$	80,490
% of 30+ days past due to total retained loans	1.01		%	1.22		%	2.74		%	3.40		%	1.90		%	^(d)	1.61		%	^(d)	1.56		%	^(d)	1.75		%	^(d)
90 or more days past due and still accruing^(b)	$	—		$	—		$	—		$	—		$	567			$	625			$	567			$	625
Nonaccrual loans	114			141			756			832			68				67				938				1,040
Geographic region
California	$	4,335		$	4,307		$	1,211		$	851		$	1,253			$	1,330			$	6,799			$	6,488
New York	3,579			3,875			2,745			2,877			1,456				1,305				7,780				8,057
Florida	1,826			1,923			269			220			667				722				2,762				2,865
Illinois	2,398			2,608			1,340			1,320			871				940				4,609				4,868
Texas	4,397			4,505			2,635			2,550			1,096				1,273				8,128				8,328
New Jersey	1,819			1,842			419			422			472				502				2,710				2,766
Arizona	1,497			1,499			1,171			1,218			328				387				2,996				3,104
Washington	737			716			151			115			255				279				1,143				1,110
Ohio	2,674			2,961			1,555			1,647			912				1,010				5,141				5,618
Michigan	2,272			2,434			1,369			1,401			653				729				4,294				4,564
All other	21,125			21,697			4,407			4,191			6,529				6,834				32,061				32,722
Total retained loans	$	46,659		$	48,367		$	17,272		$	16,812		$	14,492			$	15,311			$	78,423			$	80,490
Loans by risk ratings^(c)
Noncriticized	$	5,537		$	5,803		$	11,402		$	10,351		NA				NA				$	16,939			$	16,154
Criticized performing	174			265			780			982			NA				NA				954				1,247
Criticized nonaccrual	1			12			556			574			NA				NA				557				586


(a)	Loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) are included in the delinquency classifications presented based on their payment status. Prior-period amounts have been revised to conform to the current-period presentation.


(b)	These amounts represent student loans, which are insured by U.S. government agencies under the FFELP. These amounts were accruing as reimbursement of insured amounts is proceeding normally.


(c)	For risk-rated business banking and auto loans, the primary credit quality indicator is the risk rating of the loan, including whether the loans are considered to be criticized and/or nonaccrual.


(d)	September 30, 2011, and December 31, 2010, excluded loans 30 days or more past due and still accruing, which are insured by U.S. government agencies under the FFELP, of $995 million and $1.1 billion, respectively. These amounts were excluded as reimbursement of insured amounts is proceeding normally.

Purchased Credit Impaired [Member]

Schedule of loans recorded, credit quality indicator



	Home equity						Prime mortgage						Subprime mortgage						Option ARMs						Total PCI
(in millions, except ratios)	Sep 30, 2011			Dec 31, 2010			Sep 30, 2011			Dec 31, 2010			Sep 30, 2011			Dec 31, 2010			Sep 30, 2011			Dec 31, 2010			Sep 30, 2011			Dec 31, 2010
Carrying value^(a)	$	23,105		$	24,459		$	15,626		$	17,322		$	5,072		$	5,398		$	23,325		$	25,584		$	67,128		$	72,763
Related allowance for loan losses^(b)	1,583			1,583			1,766			1,766			98			98			1,494			1,494			4,941			4,941
Loan delinquency (based on unpaid principal balance)
Current and less than 30 days past due	$	23,450		$	25,783		$	12,250		$	13,035		$	4,431		$	4,312		$	18,116		$	18,672		$	58,247		$	61,802
30–149 days past due	1,141			1,348			1,056			1,468			780			1,020			1,551			2,215			4,528			6,051
150 or more days past due	1,209			1,181			3,376			4,425			2,226			2,710			7,496			9,904			14,307			18,220
Total loans	$	25,800		$	28,312		$	16,682		$	18,928		$	7,437		$	8,042		$	27,163		$	30,791		$	77,082		$	86,073
% of 30+ days past due to total loans	9.11		%	8.93		%	26.57		%	31.13		%	40.42		%	46.38		%	33.31		%	39.36		%	24.44		%	28.20		%
Current estimated LTV ratios (based on unpaid principal balance)^(c)(d)(e)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	5,463		$	6,289		$	1,996		$	2,400		$	451		$	432		$	2,211		$	2,681		$	10,121		$	11,802
Less than 660	3,329			4,043			2,215			2,744			1,940			2,129			4,630			6,330			12,114			15,246
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	5,569			6,053			3,516			3,815			429			424			4,002			4,292			13,516			14,584
Less than 660	2,480			2,696			2,620			3,011			1,585			1,663			4,260			5,005			10,945			12,375
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	3,839			3,995			1,852			1,970			385			374			4,015			4,152			10,091			10,491
Less than 660	1,414			1,482			1,620			1,857			1,302			1,477			3,344			3,551			7,680			8,367
Lower than 80% and refreshed FICO scores:
Equal to or greater than 660	2,618			2,641			1,347			1,443			200			186			2,357			2,281			6,522			6,551
Less than 660	1,088			1,113			1,516			1,688			1,145			1,357			2,344			2,499			6,093			6,657
Total unpaid principal balance	$	25,800		$	28,312		$	16,682		$	18,928		$	7,437		$	8,042		$	27,163		$	30,791		$	77,082		$	86,073
Geographic region (based on unpaid principal balance)
California	$	15,522		$	17,012		$	9,486		$	10,891		$	1,729		$	1,971		$	14,111		$	16,130		$	40,848		$	46,004
New York	1,208			1,316			1,037			1,111			716			736			1,592			1,703			4,553			4,866
Florida	2,374			2,595			1,332			1,519			845			906			3,375			3,916			7,926			8,936
Illinois	575			627			526			562			421			438			719			760			2,241			2,387
Texas	472			525			173			194			414			435			144			155			1,203			1,309
New Jersey	489			540			458			486			302			316			987			1,064			2,236			2,406
Arizona	485			539			271			359			133			165			387			528			1,276			1,591
Washington	1,406			1,535			402			451			167			178			673			745			2,648			2,909
Ohio	33			38			83			91			116			122			115			131			347			382
Michigan	84			95			246			279			192			214			285			345			807			933
All other	3,152			3,490			2,668			2,985			2,402			2,561			4,775			5,314			12,997			14,350
Total unpaid principal balance	$	25,800		$	28,312		$	16,682		$	18,928		$	7,437		$	8,042		$	27,163		$	30,791		$	77,082		$	86,073


(a)	Carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition.


(b)	Management concluded as part of the Firm’s regular assessment of the PCI loan pools that it was probable that higher expected principal credit losses would result in a decrease in expected cash flows. As a result, an allowance for loan losses for impairment of these pools has been recognized.

(c)


(d)	Refreshed FICO scores represent each borrower’s most recent credit score obtained by the Firm. The Firm obtains refreshed FICO scores at least quarterly.


(e)	For home equity loans, prior-period amounts have been revised to conform with the current-period presentation.

Accretable yield activity



	Total PCI
	Three months ended September 30,						Nine months ended September 30,
(in millions, except rates)	2011			2010			2011			2010
Beginning balance	$	18,083		$	19,621		$	19,097		$	25,544
Accretion into interest income	(685		)	(772		)	(2,095		)	(2,445		)
Changes in interest rates on variable-rate loans	(159		)	(57		)	(372		)	(784		)
Other changes in expected cash flows^(a)	1,213			2,864			1,822			(659		)
Balance at September 30	$	18,452		$	21,656		$	18,452		$	21,656
Accretable yield percentage	4.31		%	4.20		%	4.32		%	4.33		%

(a)

Other changes in expected cash flows may vary from period to period as the Firm continues to refine its cash flow model and periodically updates model assumptions. For the three months ended September 30, 2011, other changes in expected cash flows were predominately driven by the impact of modifications. For the nine months ended September 30, 2011, other changes in expected cash flows were largely driven by the impact of modifications, but also related to changes in prepayment assumptions. For the three months ended September 30, 2010, other changes in expected cash flows were principally driven by changes in prepayment assumptions and modeling refinements related to modified loans. For the nine months ended September 30, 2010, other changes in expected cash flows were principally driven by changes in prepayment assumptions, as well as reclassification to the nonaccretable difference. Changes to prepayment assumptions change the expected remaining life of the portfolio, which drives changes in expected future interest cash collections. Such changes do not have a significant impact on the accretable yield percentage.

Purchased Credit-Impaired Home Equity Junior Liens [Member]