Allowance For Credit Losses (Tables)

3 Months Ended

Mar. 31, 2011

Allowance For Credit Losses (Tables) [Abstract]

Allowance for Loan Losses

	2011												2010
Three months				Consumer,												Consumer,
ended March 31,				excluding												excluding
(in millions)	Wholesale			credit card			Credit Card			Total			Wholesale			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		253			1,460			2,631			4,344			1,014			2,555			4,882			8,451
Gross (recoveries)		(88	)		(131	)		(405	)		(624	)		(55	)		(116	)		(370	)		(541	)
Net charge-offs		165			1,329			2,226			3,720			959			2,439			4,512			7,910
Provision for loan losses		(359	)		1,329			226			1,196			(257	)		3,736			3,512			6,991
Other		(3	)		4			7			8			(1	)		3			7			9
Ending balance at March 31	$	4,234		$	16,475		$	9,041		$	29,750		$	5,942		$	16,212		$	16,032		$	38,186
Allowance for loan losses by impairment methodology
Asset-specific(b)(c)(d)	$	1,030		$	1,067		$	3,819		$	5,916		$	1,557		$	911		$	5,402		$	7,870
Formula-based(d)		3,204			10,467			5,222			18,893			4,385			12,490			10,630			27,505
PCI		—			4,941			—			4,941			—			2,811			—			2,811
Total allowance for loan losses	$	4,234		$	16,475		$	9,041		$	29,750		$	5,942		$	16,212		$	16,032		$	38,186
Loans by impairment methodology
Asset-specific	$	4,498		$	7,254		$	9,236		$	20,988		$	6,286		$	4,406		$	11,020		$	21,712
Formula-based		225,094			242,979			115,555			583,628			203,818			263,641			138,240			605,699
PCI		56			70,765			—			70,821			107			79,323			—			79,430
Total retained loans	$	229,648		$	320,998		$	124,791		$	675,437		$	210,211		$	347,370		$	149,260		$	706,841

(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 TDR.
(c)	At March 31, 2011 and 2010, the asset-specific consumer, excluding credit card allowance for loan losses included TDR reserves of $970 million and $754 million, respectively. The asset-specific credit card allowance for loan losses is related to loans modified in TDRs.
(d)	Prior period has been revised to reflect the reclassification of the Firm’s allowance for loan losses on all impaired credit card loans from formula-based into asset-specific allowance.

Allowance for lending related commitments

	2011											2010
				Consumer,											Consumer,
Three months ended March 31,				excluding											excluding
(in millions)	Wholesale			credit card			Credit Card		Total			Wholesale			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		(27	)		—			—		(27	)		21			(2	)		—		19
Other		(2	)		—			—		(2	)		—			—			—		—
Ending balance at March 31	$	682		$	6		$	—	$	688		$	930		$	10		$	—	$	940
Allowance for lending-related commitments by impairment methodology
Asset-specific	$	184		$	—		$	—	$	184		$	296		$	—		$	—	$	296
Formula-based		498			6			—		504			634			10			—		644
Total allowance for lending-related commitments	$	682		$	6		$	—	$	688		$	930		$	10		$	—	$	940
Lending-related commitments by impairment methodology
Asset-specific	$	895		$	—		$	—	$	895		$	1,552		$	—		$	—	$	1,552
Formula-based		354,666			64,560			565,813		985,039			325,369			72,243			556,207		953,819
Total lending-related commitments	$	355,561		$	64,560		$	565,813	$	985,934		$	326,921		$	72,243		$	556,207	$	955,371
Impaired collateral-dependent loans
Net charge-offs	$	20		$	25		$	—	$	45		$	113		$	126		$	—	$	239
Loans measured at fair value of collateral less cost to sell		715			864	(b)		—		1,579			1,069			545	(b)		—		1,614

(a)	Effective January 1, 2010, the Firm adopted accounting guidance related to VIEs. Upon adoption of the guidance, the Firm consolidated its Firm-administered multi-seller conduits. As a result, related assets are now primarily recorded in loans and other assets on the Consolidated Balance Sheets.
(b)	Includes collateral-dependent residential mortgage loans that are charged off to the fair value of the underlying collateral. 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.