
6.	*Credit Loss Reserves*

An analysis of credit loss reserves was as follows:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010

				(in millions)

Credit loss reserves at beginning of period	$	4,590		$	6,106		$	5,512		$	7,275
Provision for credit losses⁽¹⁾		2,182			1,305			3,473			4,290
Charge-offs		(973	)		(1,699	)		(3,467	)		(6,084	)
Recoveries		112			123			393			354

Credit loss reserves at end of period	$	5,911		$	5,835		$	5,911		$	5,835


⁽¹⁾		During both the three and nine months ended September 30, 2011, provision for credit losses included approximately $925 million related to the adoption of new accounting guidance for TDR Loans as discussed above of which approximately $180 million reflects the impact of charges in market conditions during the quarter.

The following table summarizes the changes in credit loss reserves by product/class during the three and nine months ended September 30, 2011 and 2010 and the related receivable balance by product/class at September 30, 2011 and 2010:


	Real Estate Secured
	First			Second			Personal Non-			Comm’l
	Lien			Lien			Credit Card			and Other		Total

				(in millions)

Three Months Ended September 30, 2011:
Credit loss reserve balances at beginning of period	$	3,002		$	635		$	953		$	-	$	4,590
Provision for credit losses⁽²⁾		1,534			375			273			-		2,182
Charge-offs		(578	)		(168	)		(227	)		-		(973	)
Recoveries		7			15			90			-		112

Net charge-offs		(571	)		(153	)		(137	)		-		(861	)

Credit loss reserve balance at end of period	$	3,965		$	857		$	1,089		$	-	$	5,911

Three Months Ended September 30, 2010:
Credit loss reserve balances at beginning of period	$	3,386		$	1,097		$	1,623		$	-	$	6,106
Provision for credit losses		897			146			262			-		1,305
Charge-offs		(908	)		(315	)		(476	)		-		(1,699	)
Recoveries		12			15			96			-		123

Net charge-offs		(896	)		(300	)		(380	)		-		(1,576	)

Credit loss reserve balance at end of period	$	3,387		$	943		$	1,505		$	-	$	5,835

Nine Months Ended September 30, 2011:
Credit loss reserve balances at beginning of period	$	3,355		$	832		$	1,325		$	-	$	5,512
Provision for credit losses⁽²⁾		2,525			613			335			-		3,473
Charge-offs		(1,941	)		(636	)		(890	)		-		(3,467	)
Recoveries		26			48			319			-		393

Net charge-offs		(1,915	)		(588	)		(571	)		-		(3,074	)

Credit loss reserve balance at end of period	$	3,965		$	857		$	1,089		$	-	$	5,911

Ending balance: collectively evaluated for impairment	$	1,080		$	357		$	421		$	-	$	1,858
Ending balance: individually evaluated for impairment⁽¹⁾		2,876			499			668			-		4,043
Ending balance: loans acquired with deteriorated credit quality		9			1			-			-		10

Total credit loss reserves	$	3,965		$	857		$	1,089		$	-	$	5,911

Receivables at September 30, 2011:
Collectively evaluated for impairment	$	23,996		$	3,707		$	4,285		$	26	$	32,014
Individually evaluated for impairment⁽¹⁾		9,926			933			1,315			-		12,174
Receivables carried fair value less cost to sell		5,504			89			-			-		5,593
Receivables acquired with deteriorated credit quality		35			6			-			-		41

Total receivables	$	39,461		$	4,735		$	5,600		$	26	$	49,822

Nine Months Ended September 30, 2010:
Credit loss reserve balances at beginning of period	$	3,997		$	1,430		$	1,848		$	-	$	7,275
Provision for credit losses		2,418			618			1,254			-		4,290
Charge-offs		(3,060	)		(1,158	)		(1,866	)		-		(6,084	)
Recoveries		32			53			269			-		354

Net charge-offs		(3,028	)		(1,105	)		(1,597	)		-		(5,730	)

Credit loss reserve balance at end of period	$	3,387		$	943		$	1,505		$	-	$	5,835

Ending balance: collectively evaluated for impairment	$	1,531		$	648		$	1,079		$	-	$	3,258
Ending balance: individually evaluated for impairment⁽¹⁾		1,843			292			426			-		2,561
Ending balance: loans acquired with deteriorated credit quality		13			3			-			-		16

Total credit loss reserves	$	3,387		$	943		$	1,505		$	-	$	5,835

Receivables at September 30, 2010:
Collectively evaluated for impairment	$	33,353		$	5,170		$	7,087		$	45	$	45,655
Individually evaluated for impairment⁽¹⁾		7,513			676			729			-		8,918
Receivables carried at fair value less cost to sell		4,811			64			-			-		4,875
Receivables acquired with deteriorated credit quality		34			7			-			-		41

Total receivables	$	45,711		$	5,917		$	7,816		$	45	$	59,489


⁽¹⁾		These amounts represent TDR Loans for which we evaluate reserves using a discounted cash flow methodology. Each loan is individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow impairment analysis is then applied to these groups of TDR Loans. This amount excludes TDR Loans that are carried at fair value less cost to sell which totaled $2.2 billion at September 30, 2011 and $1.3 billion at September 30, 2010.