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Allowance For Credit Losses (Tables)
9 Months Ended
Sep. 30, 2011
Allowance For Credit Losses (Tables) [Abstract] 
Allowance for Loan Losses
 
2011
 
2010
Nine months ended September 30,
(in millions)
Wholesale
Consumer,
excluding
credit card
 
Credit card
Total
 
Wholesale
Consumer,
excluding
credit card
 
Credit card
Total
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
Beginning balance at January 1,
$
4,761

$
16,471

 
$
11,034

$
32,266

 
$
7,145

$
14,785

 
$
9,672

$
31,602

Cumulative effect of change in accounting principles(a)
—

—

 
—

—

 
14

127

 
7,353

7,494

Gross charge-offs
485

4,109

 
6,527

11,121

 
1,575

6,106

 
12,430

20,111

Gross recoveries
(391
)
(408
)
 
(992
)
(1,791
)
 
(119
)
(359
)
 
(1,064
)
(1,542
)
Net charge-offs
94

3,701

 
5,535

9,330

 
1,456

5,747

 
11,366

18,569

Provision for loan losses
(347
)
3,731

 
2,035

5,419

 
(750
)
6,999

 
7,366

13,615

Other
(18
)
19

 
(6
)
(5
)
 
10

5

 
4

19

Ending balance at September 30,
$
4,302

$
16,520

 
$
7,528

$
28,350

 
$
4,963

$
16,169

 
$
13,029

$
34,161

Allowance for loan losses by impairment methodology
 
 
 
 
 
 
 
 
 
 
 
Asset-specific(b)(c)(d)
$
670

$
1,016

 
$
3,052

$
4,738

 
$
1,246

$
1,088

 
$
4,573

$
6,907

Formula-based(d)
3,632

10,563

 
4,476

18,671

 
3,717

12,270

 
8,456

24,443

PCI
—

4,941

 
—

4,941

 
—

2,811

 
—

2,811

Total allowance for loan losses
$
4,302

$
16,520

 
$
7,528

$
28,350

 
$
4,963

$
16,169

 
$
13,029

$
34,161

Loans by impairment methodology
 
 
 
 
 
 
 
 
 
 
 
Asset-specific
$
3,053

$
9,096

 
$
7,820

$
19,969

 
$
5,689

$
6,025

 
$
10,562

$
22,276

Formula-based
252,713

233,880

 
119,221

605,814

 
211,816

252,254

 
125,874

589,944

PCI
33

67,128

 
—

67,161

 
77

74,752

 
—

74,829

Total retained loans
$
255,799

$
310,104

 
$
127,041

$
692,944

 
$
217,582

$
333,031

 
$
136,436

$
687,049

 
 
 
 
 
 
 
 
 
 
 
 
Impaired collateral-dependent loans
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs(e)
$
73

$
79

 
$
—

$
152

 
$
473

$
274

 
$
—

$
747

Loans measured at fair value of collateral less cost to sell(e)
997

847

(f) 
—

1,844

 
1,798

833

(f) 
—

2,631

(a)
Effective January 1, 2010, the Firm adopted accounting guidance related to variable interest entities (“VIEs”). Upon adoption of the guidance, the Firm consolidated its Firm-sponsored credit card securitization trusts, its Firm-administered multi-seller conduits and certain other consumer loan securitization entities, primarily mortgage-related. As a result, $7.4 billion, $14 million and $127 million, respectively, of allowance for loan losses were recorded on-balance sheet with the consolidation of these entities. For further discussion, see Note 16 on pages 244–259 of JPMorgan Chase’s 2010 Annual Report.
(b)
Relates to risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a troubled debt restructuring.
(c)
At September 30, 2011 and 2010, the asset-specific consumer excluding credit card allowance for loan losses included TDR reserves of $930 million and $980 million, respectively. The asset-specific credit card allowance for loan losses is related to loans modified in TDRs.
(d)
At September 30, 2011 and 2010, the Firm’s allowance for loan losses on all impaired credit card loans was reclassified to the asset-specific allowance. This reclassification has no incremental impact on the Firm’s allowance for loan losses. Prior periods have been revised to reflect the current presentation.
(e)
Prior periods have been revised to conform with the current presentation.
(f)
Includes collateral-dependent residential mortgage loans that are charged off to the fair value of the underlying collateral less cost to sell. These loans are considered collateral-dependent under regulatory guidance because they involve modifications where an interest-only period is provided or a significant portion of principal is deferred.
Allowance for lending related commitments
 
2011
 
2010
Nine months ended September 30, (in millions)
Wholesale
Consumer,
excluding
credit card
Credit Card
Total
 
Wholesale
Consumer,
excluding
credit card
Credit Card
Total
Allowance for lending-related commitments
 
 
 
 
 
 
 
 
 
 
 
Beginning balance at January 1,
$
711

$
6

 
$
—

$
717

 
$
927

$
12

 
$
—

$
939

Cumulative effect of change in accounting principles(a)
—

—

 
—

—

 
(18
)
—

 
—

(18
)
Provision for lending-related commitments
(29
)
—

 
—

(29
)
 
(14
)
(5
)
 
—

(19
)
Other
(2
)
—

 
—

(2
)
 
(29
)
—

 
—

(29
)
Ending balance at September 30,
$
680

$
6

 
$
—

$
686

 
$
866

$
7

 
$
—

$
873

Allowance for lending-related commitments by impairment methodology
 
 
 
 
 
 
 
 
 
 
 
Asset-specific
$
156

$
—

 
$
—

$
156

 
$
267

$
—

 
$
—

$
267

Formula-based
524

6

 
—

530

 
599

7

 
—

606

Total allowance for lending-related commitments
$
680

$
6

 
$
—

$
686

 
$
866

$
7

 
$
—

$
873

Lending-related commitments by impairment methodology
 
 
 
 
 
 
 
 
 
 
 
Asset-specific
$
705

$
—

 
$
—

$
705

 
$
1,344

$
—

 
$
—

$
1,344

Formula-based
378,977

64,581

 
528,830

972,388

 
337,268

68,275

 
547,195

952,738

Total lending-related commitments
$
379,682

$
64,581

 
$
528,830

$
973,093

 
$
338,612

$
68,275

 
$
547,195

$
954,082

(a)
Effective January 1, 2010, the Firm adopted accounting guidance related to VIEs. Upon adoption of the guidance, the Firm consolidated its administered multi-seller conduits. As a result, related assets are now primarily recorded in loans and other assets on the Consolidated Balance Sheets.