Off-Balance Sheet Lending-Related Financial Instruments, Guarantees and Other Commitments (Tables)

9 Months Ended

Sep. 30, 2011

Off Balance Sheet Lending Related Financial Instruments Guarantees and Other Commitments (Tables) [Abstract]

Off-balance sheet lending-related financial instruments, guarantees and other commitments

	Contractual amount				Carrying value(j)
(in millions)	September 30, 2011		December 31, 2010		September 30, 2011			December 31, 2010
Lending-related
Consumer, excluding credit card:
Home equity – senior lien	$	16,902	$	17,662	$	—		$	—
Home equity – junior lien	27,576		30,948		—			—
Prime mortgage	1,512		1,266		—			—
Subprime mortgage	—		—		—			—
Auto	7,416		5,246		1			2
Business banking	10,284		9,702		5			4
Student and other	891		579		—			—
Total consumer, excluding credit card	64,581		65,403		6			6
Credit card	528,830		547,227		—			—
Total consumer	593,411		612,630		6			6
Wholesale:
Other unfunded commitments to extend credit(a)(b)	217,751		199,859		366			364
Standby letters of credit and other financial guarantees(a)(b)(c)(d)	99,515		94,837		691			705
Unused advised lines of credit	56,245		44,720		—			—
Other letters of credit(a)(d)	6,171		6,663		2			2
Total wholesale	379,682		346,079		1,059			1,071
Total lending-related	$	973,093	$	958,709	$	1,065		$	1,077
Other guarantees and commitments
Securities lending guarantees(e)	$	199,020	$	181,717	NA			NA
Derivatives qualifying as guarantees(f)	81,243		87,768		$	718		$	294
Unsettled reverse repurchase and securities borrowing agreements(g)	69,752		39,927		—			—
Other guarantees and commitments(h)	6,113		6,492		(6		)	(6		)
Loan sale and securitization-related indemnifications:
Repurchase liability(i)	NA		NA		3,616			3,285
Loans sold with recourse	10,615		10,982		155			153

(a) At September 30, 2011, and December 31, 2010, represented the contractual amount net of risk participations totaling $617 million and $542 million, respectively, for Other unfunded commitments to extend credit; $21.2 billion and $22.4 billion, respectively, for Standby letters of credit and other financial guarantees; and $1.4 billion and $1.1 billion, respectively, for Other letters of credit. In regulatory filings with the Federal Reserve Board these commitments are shown gross of risk participations.

(b) At September 30, 2011, and December 31, 2010, included credit enhancements and bond and commercial paper liquidity commitments to U.S. states and municipalities, hospitals and other not-for-profit entities of $48.5 billion and $43.4 billion, respectively. These commitments also include liquidity facilities to nonconsolidated municipal bond VIEs; for further information, see Note 15 on pages 160–168 of this Form 10-Q.

(c) At September 30, 2011, and December 31, 2010, included unissued Standby letters of credit commitments of $43.0 billion and $41.6 billion, respectively.

(d) At September 30, 2011, and December 31, 2010, JPMorgan Chase held collateral relating to $40.7 billion and $37.8 billion, respectively, of Standby letters of credit; and $1.5 billion and $2.1 billion, respectively, of Other letters of credit.

(e) At September 30, 2011, and December 31, 2010, collateral held by the Firm in support of securities lending indemnification agreements was $200.8 billion and $185.0 billion, respectively. Securities lending collateral comprises primarily cash and securities issued by governments that are members of the Organisation for Economic Co-operation and Development (“OECD”) and U.S. government agencies.

(f) Represents notional amounts of derivatives qualifying as guarantees. The carrying value at September 30, 2011, and December 31, 2010, reflected derivative payables of $823 million and $390 million, respectively, less derivative receivables of $105 million and $96 million, respectively.

(g) At September 30, 2011, and December 31, 2010, the amount of commitments related to forward starting reverse repurchase agreements and securities borrowing agreements were $20.4 billion and $14.4 billion, respectively. Commitments related to unsettled reverse repurchase agreements and securities borrowing agreements with regular way settlement periods were $49.3 billion and $25.5 billion, at September 30, 2011, and December 31, 2010, respectively.

(h) At September 30, 2011, and December 31, 2010, includedunfunded commitments of$853 million and $1.0 billion, respectively, to third-party private equity funds; and $1.4 billion and $1.4 billion, respectively, to other equity investments. These commitments included $790 million and $1.0 billion, respectively, related to investments that are generally fair valued at net asset value as discussed in Note 3 on pages 104–116 of this Form 10-Q. In addition, at September 30, 2011, and December 31, 2010, included letters of credit hedged by derivative transactions and managed on a market risk basis of $3.9 billionand$3.8 billion,respectively.

(i) Represents the estimated repurchase liability related to indemnifications for breaches of representations and warranties in loan sale and securitization agreements. For additional information, see Loan sale and securitization-related indemnifications on page 179 of this Note.

(j) For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability, for derivative-related products, the carrying value represents the fair value. For all other products the carrying value represents the valuation reserve.

Standby letters of credit and other financial guarantees and other letters of credit

	September 30, 2011						December 31, 2010
(in millions)	Standby letters of credit and other financial guarantees				Other letters of credit		Standby letters of credit and other financial guarantees				Other letters of credit
Investment-grade(a)		$	76,321		$	4,971		$	70,236		$	5,289
Noninvestment-grade(a)		23,194			1,200			24,601			1,374
Total contractual amount(b)		$	99,515	(c)	$	6,171		$	94,837	(c)	$	6,663
Allowance for lending-related commitments		$	312		$	2		$	345		$	2
Commitments with collateral		40,715			1,468			37,815			2,127

(a) The ratings scale is based on the Firm’s internal ratings which generally correspond to ratings as defined by S&P and Moody’s.

(b) At September 30, 2011, and December 31, 2010, represented contractual amount net of risk participations totaling $21.2 billion and $22.4 billion, respectively, for Standby letters of credit and other financial guarantees; and $1.4 billion and $1.1 billion, respectively, for Other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.

(c) At September 30, 2011, and December 31, 2010, included unissued Standby letters of credit commitments of $43.0 billion and $41.6 billion, respectively.

Summary of changes in repurchase liability

	Three months ended September 30,						Nine months ended September 30,
(in millions)	2011			2010			2011			2010
Repurchase liability at beginning of period	$	3,631		$	2,332		$	3,285		$	1,705
Realized losses(a)	(329		)	(489		)	(801		)	(1,052		)
Provision for repurchase losses	314			1,464			1,132			2,654
Repurchase liability at end of period	$	3,616		$	3,307		$	3,616		$	3,307

(a) Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants, and certain related expenses. Make-whole settlements were $162 million and $225 million for the three months ended September 30, 2011 and 2010, respectively, and $403 million and $480 million for the nine months ended September 30, 2011 and 2010, respectively.