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Allowance For Credit Losses (Tables)
6 Months Ended
Jun. 30, 2011
Allowance For Credit Losses (Tables) [Abstract] 
Allowance for Loan Losses
 
2011
 
2010
Six months ended June 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
387

2,817

 
4,762

7,966

 
1,278

4,429

 
8,945

14,652

Gross recoveries
(142
)
(275
)
 
(726
)
(1,143
)
 
(88
)
(228
)
 
(712
)
(1,028
)
Net charge-offs
245

2,542

 
4,036

6,823

 
1,190

4,201

 
8,233

13,624

Provision for loan losses
(414
)
2,446

 
1,036

3,068

 
(812
)
5,450

 
5,733

10,371

Other
(11
)
12

 
8

9

 
(9
)
3

 
(1
)
(7
)
Ending balance at June 30,
$
4,091

$
16,387

 
$
8,042

$
28,520

 
$
5,148

$
16,164

 
$
14,524

$
35,836

Allowance for loan losses by impairment methodology
 
 
 
 
 
 
 
 
 
 
 
Asset-specific(b)(c)(d)
$
749

$
1,049

 
$
3,451

$
5,249

 
$
1,324

$
1,091

 
$
4,846

$
7,261

Formula-based(d)
3,342

10,397

 
4,591

18,330

 
3,824

12,262

 
9,678

25,764

PCI
—

4,941

 
—

4,941

 
—

2,811

 
—

2,811

Total allowance for loan losses
$
4,091

$
16,387

 
$
8,042

$
28,520

 
$
5,148

$
16,164

 
$
14,524

$
35,836

Loans by impairment methodology
 
 
 
 
 
 
 
 
 
 
 
Asset-specific
$
3,380

$
7,858

 
$
8,484

$
19,722

 
$
5,661

$
5,428

 
$
10,887

$
21,976

Formula-based
240,790

238,317

 
117,039

596,146

 
207,232

256,900

 
132,107

596,239

PCI
54

68,994

 
—

69,048

 
94

76,901

 
—

76,995

Total retained loans
$
244,224

$
315,169

 
$
125,523

$
684,916

 
$
212,987

$
339,229

 
$
142,994

$
695,210

 
 
 
 
 
 
 
 
 
 
 
 
Impaired collateral-dependent loans
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs(e)
$
59

$
53

 
$
—

$
112

 
$
297

$
227

 
$
—

$
524

Loans measured at fair value of collateral less cost to sell(e)
1,144

863

(f) 
—

2,007

 
2,064

801

(f) 
—

2,865

(a)
Effective January 1, 2010, the Firm adopted accounting guidance related to 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 June 30, 2011 and 2010, the asset-specific consumer excluding credit card allowance for loan losses included troubled debt restructuring reserves of $962 million and $946 million, respectively. The asset-specific credit card allowance for loan losses is related to loans modified in TDRs.
(d)
At June 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
Six months ended June 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
(89
)
—

 
—

(89
)
 
4

(2
)
 
—

2

Other
(2
)
—

 
—

(2
)
 
(11
)
—

 
—

(11
)
Ending balance at June 30,
$
620

$
6

 
$
—

$
626

 
$
902

$
10

 
$
—

$
912

Allowance for lending-related commitments by impairment methodology
 
 
 
 
 
 
 
 
 
 
 
Asset-specific
$
144

$
—

 
$
—

$
144

 
$
248

$
—

 
$
—

$
248

Formula-based
476

6

 
—

482

 
654

10

 
—

664

Total allowance for lending-related commitments
$
620

$
6

 
$
—

$
626

 
$
902

$
10

 
$
—

$
912

Lending-related commitments by impairment methodology
 
 
 
 
 
 
 
 
 
 
 
Asset-specific
$
793

$
—

 
$
—

$
793

 
$
1,195

$
—

 
$
—

$
1,195

Formula-based
364,896

64,649

 
535,625

965,170

 
323,357

69,499

 
550,442

943,298

Total lending-related commitments
$
365,689

$
64,649

 
$
535,625

$
965,963

 
$
324,552

$
69,499

 
$
550,442

$
944,493

(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.