Document and Entity Information
Document and Entity Information (USD $) | |||
6 Months Ended
Jun. 30, 2009 | Jul. 31, 2009
| Jun. 30, 2008
| |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | JPMorgan Chase & Co. | ||
Entity Central Index Key | 0000019617 | ||
Document Type | 10-Q | ||
Document Period End Date | 2009-06-30 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float (actual number) | $117,255,349,362 | ||
Entity Common Stock, Shares Outstanding (actual number) | 3,932,572,941 |
Consolidated Statements of Inco
Consolidated Statements of Income (USD $) | |||||||||||||||||||
In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 | |||||||||||||||
Revenue | |||||||||||||||||||
Investment banking fees | $2,106 | $1,612 | $3,492 | $2,828 | |||||||||||||||
Principal transactions | 3,097 | 752 | 5,098 | (51) | |||||||||||||||
Lending & deposit-related fees | 1,766 | 1,105 | 3,454 | 2,144 | |||||||||||||||
Asset management, administration and commissions | 3,124 | 3,628 | 6,021 | 7,224 | |||||||||||||||
Securities gains | 347 | [1] | 647 | [1] | 545 | [1] | 680 | [1] | |||||||||||
Mortgage fees and related income | 784 | 696 | 2,385 | 1,221 | |||||||||||||||
Credit card income | 1,719 | 1,803 | 3,556 | 3,599 | |||||||||||||||
Other income | 10 | (138) | 60 | 1,691 | |||||||||||||||
Noninterest revenue | 12,953 | 10,105 | 24,611 | 19,336 | |||||||||||||||
Interest income | 16,549 | 16,529 | 34,475 | 34,061 | |||||||||||||||
Interest expense | 3,879 | 8,235 | 8,438 | 18,108 | |||||||||||||||
Net interest income | 12,670 | 8,294 | 26,037 | 15,953 | |||||||||||||||
Total net revenue | 25,623 | 18,399 | 50,648 | 35,289 | |||||||||||||||
Provision for credit losses | 8,031 | 3,455 | 16,627 | 7,879 | |||||||||||||||
Noninterest expense | |||||||||||||||||||
Compensation expense | 6,917 | 6,913 | 14,505 | 11,864 | |||||||||||||||
Occupancy expense | 914 | 669 | 1,799 | 1,317 | |||||||||||||||
Technology, communications and equipment expense | 1,156 | 1,028 | 2,302 | 1,996 | |||||||||||||||
Professional & outside services | 1,518 | 1,450 | 3,033 | 2,783 | |||||||||||||||
Marketing | 417 | 413 | 801 | 959 | |||||||||||||||
Other expense | 2,190 | 1,233 | 3,565 | 1,402 | |||||||||||||||
Amortization of intangibles | 265 | 316 | 540 | 632 | |||||||||||||||
Merger costs | 143 | 155 | 348 | 155 | |||||||||||||||
Total noninterest expense | 13,520 | 12,177 | 26,893 | 21,108 | |||||||||||||||
Income before income tax expense | 4,072 | 2,767 | 7,128 | 6,302 | |||||||||||||||
Income tax expense | 1,351 | 764 | 2,266 | 1,926 | |||||||||||||||
Net income | 2,721 | 2,003 | 4,862 | 4,376 | |||||||||||||||
Net income applicable to common stockholders | $1,072 | $1,843 | $2,591 | $4,133 | |||||||||||||||
Net income per common share data | |||||||||||||||||||
Basic earnings per share | 0.28 | 0.54 | 0.68 | 1.21 | |||||||||||||||
Diluted earnings per share | 0.28 | 0.53 | 0.68 | 1.2 | |||||||||||||||
Weighted-average basic shares | 3811.5 | 3426.2 | 3783.6 | 3411.1 | |||||||||||||||
Weighted-average diluted shares | 3824.1 | 3453.1 | 3791.4 | 3438.2 | |||||||||||||||
Cash dividends declared per common share | 0.05 | 0.38 | 0.1 | 0.76 | |||||||||||||||
[1]Securities gains for the three and six months ended June 30, 2009, respectively, included credit losses of $186 million and $191 million, consisting of $882 million and $887 million of gross unrealized losses, net of $696 million and $696 million recognized in other comprehensive income. |
Consolidated Statement of Incom
Consolidated Statement of Income (Parenthetical) (USD $) | ||
In Millions | 3 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2009 |
Gross unrealized losses | $882 | $887 |
Credit losses | 186 | 191 |
Impairment losses recognized in other comprehensive income | $696 | $696 |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
Assets | ||
Cash and due from banks | $25,133 | $26,895 |
Deposits with banks | 61,882 | 138,139 |
Federal funds sold and securities purchased under resale agreements (included $18,996 and $20,843 at fair value at June 30, 2009, and December 31, 2008, respectively) | 159,170 | 203,115 |
Securities borrowed (included $3,360 and $3,381 at fair value at June 30, 2009, and December 31, 2008, respectively) | 129,263 | 124,000 |
Trading assets (included assets pledged of $82,702 and $75,063 at June 30, 2009, and December 31, 2008, respectively) | 395,626 | 509,983 |
Securities (included $345,534 and $205,909 at fair value at June 30, 2009, and December 31, 2008, respectively, and assets pledged of $95,932 and $25,942 at June 30, 2009, and December 31, 2008, respectively) | 345,563 | 205,943 |
Loans (included $3,073 and $7,696 at fair value at June 30, 2009, and December 31, 2008, respectively) | 680,601 | 744,898 |
Allowance for loan losses | (29,072) | (23,164) |
Loans, net of allowance for loan losses | 651,529 | 721,734 |
Accrued interest and accounts receivable | 61,302 | 60,987 |
Premises and equipment | 10,668 | 10,045 |
Goodwill | 48,288 | 48,027 |
Other intangible assets: | ||
Mortgage servicing rights | 14,600 | 9,403 |
Purchased credit card relationships | 1,431 | 1,649 |
All other intangibles | 3,651 | 3,932 |
Other assets (included $32,225 and $29,199 at fair value at June 30, 2009, and December 31, 2008, respectively) | 118,536 | 111,200 |
Total assets | 2,026,642 | 2,175,052 |
Liabilities | ||
Deposits (included $3,787 and $5,605 at fair value at June 30, 2009, and December 31, 2008, respectively) | 866,477 | 1,009,277 |
Federal funds purchased and securities loaned or sold under repurchase agreements (included $2,977 and $2,993 at fair value at June 30, 2009, and December 31, 2008, respectively) | 300,931 | 192,546 |
Commercial paper | 42,713 | 37,845 |
Other borrowed funds (included $16,264 and $14,713 at fair value at June 30, 2009, and December 31, 2008, respectively) | 73,968 | 132,400 |
Trading liabilities | 123,218 | 166,878 |
Accounts payable and other liabilities (included the allowance for lending-related commitments of $746 and $659 at June 30, 2009, and December 31, 2008, respectively, and $441 and zero at fair value at June 30, 2009, and December 31, 2008, respectively) | 171,685 | 187,978 |
Beneficial interests issued by consolidated variable interest entities (included $1,763 and $1,735 at fair value at June 30, 2009, and December 31, 2008, respectively) | 20,945 | 10,561 |
Long-term debt (included $53,442 and $58,214 at fair value at June 30, 2009, and December 31, 2008, respectively) | 254,226 | 252,094 |
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities | 17,713 | 18,589 |
Total liabilities | 1,871,876 | 2,008,168 |
Stockholders' equity | ||
Preferred stock ($1 par value; authorized 200,000,000 shares at June 30, 2009, and December 31, 2008; issued 2,538,107 and 5,038,107 shares at June 30, 2009, and December 31, 2008, respectively) | 8,152 | 31,939 |
Common stock ($1 par value; authorized 9,000,000,000 shares at June 30, 2009, and December 31, 2008; issued 4,104,933,895 and 3,941,633,895 shares at June 30, 2009, and December 31, 2008, respectively) | 4,105 | 3,942 |
Capital surplus | 97,662 | 92,143 |
Retained earnings | 56,355 | 54,013 |
Accumulated other comprehensive income (loss) | (3,438) | (5,687) |
Shares held in RSU Trust, at cost (1,926,714 and 4,794,723 shares at June 30, 2009, and December 31, 2008, respectively) | (86) | (217) |
Treasury stock, at cost (180,799,067 and 208,833,260 shares at June 30, 2009, and December 31, 2008, respectively) | (7,984) | (9,249) |
Total stockholders' equity | 154,766 | 166,884 |
Total liabilities and stockholders' equity | $2,026,642 | $2,175,052 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | ||
In Millions, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
Federal funds sold and securities purchased under resale agreements, at fair value | $18,996 | $20,843 |
Trading assets pledged as collateral | 82,702 | 75,063 |
Securities borrowed, at fair value | 3,360 | 3,381 |
Securities, at fair value | 345,534 | 205,909 |
Securities, assets pledged | 95,932 | 25,942 |
Loans, at fair value | 3,073 | 7,696 |
Other assets, at fair value | 32,225 | 29,199 |
Deposits, at fair value | 3,787 | 5,605 |
Federal funds purchased and securities loaned or sold under repurchase agreements, at fair value | 2,977 | 2,993 |
Other borrowed funds, at fair value | 16,264 | 14,713 |
Allowance for lending-related commitments | 746 | 659 |
Accounts payable and other liabilities, at fair value | 441 | 0 |
Beneficial interests issued by consolidated variable interest entities, at fair value | 1,763 | 1,735 |
Long-term debt, at fair value | $53,442 | $58,214 |
Preferred stock, par value (actual number) | 1 | 1 |
Preferred stock, share authorized (actual number) | 200,000,000 | 200,000,000 |
Preferred stock, share issued (actual number) | 2,538,107 | 5,038,107 |
Common stock, par value (actual number) | 1 | 1 |
Common stock, share authorized (actual number) | 9,000,000,000 | 9,000,000,000 |
Common stock, shares issued (actual number) | 4,104,933,895 | 3,941,633,895 |
Shares held in RSU Trust, shares (actual number) | 1,926,714 | 4,794,723 |
Treasury stock, shares (actual number) | 180,799,067 | 208,833,260 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders Equity and Comprehensive Income (USD $) | ||||||||
In Millions | Common stock
| Preferred stock
| Capital surplus
| Treasury stock, at cost
| Retained earnings
| Accumulated other comprehensive income (loss)
| Total
| |
Balance at January 1 at Dec. 31, 2007 | $0 | $3,658 | $0 | $78,597 | ($12,832) | $54,715 | ($917) | |
Issuance of stock | 0 | 6,000 | 0 | |||||
Accretion of preferred stock discount on issuance to the U.S. Treasury | 0 | |||||||
Redemption of preferred stock issued to the U.S. Treasury | 0 | |||||||
Shares issued and commitments to issue common stock for employee stock-based compensation awards and related tax effects | (46) | |||||||
Net Change from the Bear Stearns Merger - Reissuance of treasury stock and the Share Exchange agreement | 48 | |||||||
Net Change from the Bear Stearns Merger - Employee stock awards | 271 | |||||||
Net income | 4,376 | 4,376 | ||||||
Dividends declared - preferred stock | (90) | |||||||
Dividend declared - Accelerated amortization from redemption of preferred stock issued to the U.S. Treasury | 0 | |||||||
Dividend declared - Common stock ($0.10 and $0.76 per share for the six months ended June 30, 2009 and 2008, respectively) | (2,688) | |||||||
Resulting from the Bear Stearns merger | (269) | |||||||
Reissuance from RSU Trust | 0 | |||||||
Reissuance from treasury stock | 1,852 | |||||||
Share repurchases related to employee stock-based compensation awards | 0 | |||||||
Net change from the Bear Stearns merger as a result of the reissuance of treasury stock and the Share Exchange agreement | 1,150 | |||||||
Other comprehensive income (loss) | (649) | |||||||
Ending Balance at Jun. 30, 2008 | (269) | 3,658 | 6,000 | 78,870 | (9,830) | 56,313 | (1,566) | 133,176 |
Balance at January 1 at Dec. 31, 2008 | (217) | 3,942 | 31,939 | 92,143 | (9,249) | 54,013 | (5,687) | 166,884 |
Issuance of stock | 163 | 0 | 5,589 | |||||
Accretion of preferred stock discount on issuance to the U.S. Treasury | 1,213 | |||||||
Redemption of preferred stock issued to the U.S. Treasury | (25,000) | |||||||
Shares issued and commitments to issue common stock for employee stock-based compensation awards and related tax effects | (70) | |||||||
Net Change from the Bear Stearns Merger - Reissuance of treasury stock and the Share Exchange agreement | 0 | |||||||
Net Change from the Bear Stearns Merger - Employee stock awards | 0 | |||||||
Net income | 4,862 | 4,862 | ||||||
Dividends declared - preferred stock | (1,003) | |||||||
Dividend declared - Accelerated amortization from redemption of preferred stock issued to the U.S. Treasury | (1,112) | |||||||
Dividend declared - Common stock ($0.10 and $0.76 per share for the six months ended June 30, 2009 and 2008, respectively) | (405) | |||||||
Resulting from the Bear Stearns merger | 0 | |||||||
Reissuance from RSU Trust | 131 | |||||||
Reissuance from treasury stock | 1,284 | |||||||
Share repurchases related to employee stock-based compensation awards | (19) | |||||||
Net change from the Bear Stearns merger as a result of the reissuance of treasury stock and the Share Exchange agreement | 0 | |||||||
Other comprehensive income (loss) | 2,249 | |||||||
Ending Balance at Jun. 30, 2009 | ($86) | $4,105 | $8,152 | $97,662 | ($7,984) | $56,355 | ($3,438) | $154,766 |
1_Consolidated Statements of Ch
Consolidated Statements of Changes in Equity and Comprehensive Income (Parenthetical) (Retained earnings, USD $) | ||
6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 | |
Common stock, dividends, per share, declared | 0.1 | 0.76 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | ||
In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
Operating activities | ||
Net income | $4,862 | $4,376 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for credit losses | 16,627 | 7,879 |
Depreciation and amortization | 1,209 | 1,503 |
Amortization of intangibles | 540 | 632 |
Deferred tax benefit | (2,276) | (1,139) |
Investment securities gains | (545) | (680) |
Proceeds on sale of investment | 0 | (1,540) |
Stock-based compensation | 1,672 | 1,388 |
Originations and purchases of loans held-for-sale | (9,850) | (21,289) |
Proceeds from sales, securitizations and paydowns of loans held-for-sale | 16,212 | 22,660 |
Net change in: | ||
Trading assets | 140,934 | 1,494 |
Securities borrowed | (5,282) | (3,396) |
Accrued interests and accounts receivable | (441) | 3,031 |
Other assets | 17,722 | (8,122) |
Trading liabilities | (61,751) | 13,383 |
Accounts payable and other liabilities | (14,854) | (1,669) |
Other operating adjustments | (1,520) | 5,462 |
Net cash provided by operating activities | 103,259 | 23,973 |
Investing activities | ||
Net change in deposits with banks | 76,177 | (1,457) |
Net change in federal funds sold and securities purchased under resale agreements | 43,374 | (20,457) |
Held-to-maturity securities: | ||
Proceeds | 5 | 5 |
Available-for-sale securities: | ||
Proceeds from maturities | 47,129 | 21,219 |
Proceeds from sales | 67,472 | 32,438 |
Purchases | (249,770) | (88,119) |
Proceeds from sales and securitization of loans held-for-investment | 17,897 | 18,021 |
Other changes in loans, net | 37,593 | (41,648) |
Net cash (used) received in business acquisitions or dispositions | (18) | 444 |
Proceeds from asset sale to the FRBNY | 0 | 28,850 |
Net purchases of asset-backed commercial paper guaranteed by the FRBB | (3,257) | 0 |
All other investing activities, net | (2,172) | (3,378) |
Net cash provided by (used in) investing activities | 34,430 | (54,082) |
Financing activities | ||
Net change in deposits | (173,304) | (2,564) |
Net change in federal funds purchased and securities loaned or sold under repurchase agreements | 107,281 | 22,107 |
Net change in commercial paper and other borrowed funds | (53,690) | (10,023) |
Proceeds from the issuance of long-term debt and trust preferred capital debt securities | 38,079 | 38,184 |
Repayments of long-term debt and trust-preferred capital debt securities | (34,924) | (29,973) |
Excess tax benefits related to stock-based compensation | 1 | 121 |
Proceeds from issuance of preferred stock | 0 | 6,000 |
Redemption of preferred stock issued to the U.S. Treasury | (25,000) | 0 |
Proceeds from issuance of common stock | 5,756 | 0 |
Cash dividends paid | (2,681) | (2,663) |
All other financing activities, net | (931) | 765 |
Net cash (used in) provided by financing activities | (139,413) | 21,954 |
Effect of exchange rate changes on cash and due from banks | (38) | 266 |
Net (decrease) in cash and due from banks | (1,762) | (7,889) |
Cash and due from banks at the beginning of the year | 26,895 | 40,144 |
Cash and due from banks at the end of the period | 25,133 | 32,255 |
Cash interest paid | 8,463 | 19,462 |
Cash income taxes paid | $3,837 | $2,264 |
2_Consolidated Statements of Ca
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | |
In Billions, except Share data in Millions | Jun. 30, 2008
|
Noncash assets acquired in the merger with Bear Stearns | 288.2 |
Liabilities assumed in merger with Bear Stearns | 287.7 |
Approximate number of shares of common stock issued in connection with the Merger with Bear Stearns | 26 |
Common stock issued in connection with Bear Stearns Merger | 1.2 |
Basis of Presentation
Basis of Presentation | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Basis of Presentation [Abstract] | |
Basis of Presentation | NOTE 1 BASIS OF PRESENTATION JPMorgan Chase Co. (JPMorgan Chase or the Firm), a financial holding company incorporated under Delaware law in 1968, is a leading global financial services firm and one of the largest banking institutions in the United States of America (U.S.), with operations worldwide. The Firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing and asset management. For a discussion of the Firms business segments information, see Note 25 on pages 163166 of this Form 10-Q. The accounting and financial reporting policies of JPMorgan Chase and its subsidiaries conform to accounting principles generally accepted in the United States of America (U.S. GAAP). Additionally, where applicable, the policies conform to the accounting and reporting guidelines prescribed by bank regulatory authorities. The unaudited consolidated financial statements prepared in conformity with U.S. GAAP require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expense, and the disclosures of contingent assets and liabilities. Actual results could be different from these estimates. In the opinion of management, all normal recurring adjustments have been included for a fair statement of this interim financial information. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in JPMorgan Chases Annual Report on Form 10-K for the year ended December31, 2008, as filed with the U.S. Securities and Exchange Commission (the 2008 Annual Report). Certain amounts in prior periods have been reclassified to conform to the current presentation. |
Business Changes and Developmen
Business Changes and Developments | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Business Changes and Developments [Abstract] | |
Business Changes and Developments | NOTE 2 BUSINESS CHANGES AND DEVELOPMENTS Decrease in common stock dividend On February23, 2009, the Board of Directors reduced the Firms quarterly common stock dividend from $0.38 to $0.05 per share, effective with the dividend paid on April30, 2009, to shareholders of record on April6, 2009. Acquisition of the banking operations of Washington Mutual Bank Refer to Note 2 on pages 123124 and 127 of JPMorgan Chases 2008 Annual Report for a discussion of JPMorgan Chases acquisition of the banking operations of Washington Mutual Bank (Washington Mutual) on September25, 2008, including its purchase price and the allocation of the purchase price to net assets acquired and the resulting extraordinary gain. The acquisition is being accounted for under the purchase method of accounting in accordance with SFAS 141. The total purchase price to complete the acquisition was $1.9billion, which was allocated to the Washington Mutual assets acquired and liabilities assumed using their fair values as of September25, 2008. The allocation of the purchase price may be modified through September25, 2009, as more information is obtained about the fair value of assets acquired and liabilities assumed. Merger with The Bear Stearns Companies Inc. Refer to Note 2 on pages 125127 of JPMorgan Chases 2008 Annual Report for a discussion of the merger on May30, 2008, of a wholly-owned subsidiary of JPMorgan Chase with The Bear Stearns Companies Inc. (Bear Stearns). The merger is being accounted for under the purchase method of accounting in accordance with SFAS 141. The total purchase price to complete the merger was $1.5 billion, which was allocated to the Bear Stearns assets acquired and liabilities assumed using their fair values as of April8, 2008, and May30, 2008. The updated summary computation of the purchase price and the allocation of the purchase price to the net assets of Bear Stearns are presented below. (in millions, except for shares (in thousands), per share amounts and where otherwise noted) Purchase price Shares exchanged in the Share Exchange transaction (April8, 2008) 95,000 Other Bear Stearns shares outstanding 145,759 Total Bear Stearns stock outstanding 240,759 Cancellation of shares issued in the Share Exchange transaction (95,000 ) Cancellation of shares acquired by JPMorgan Chase for cash in the open market (24,061 ) Bear Stearns common stock exchanged as of May30, 2008 121,698 Exchange ratio 0.21753 JPMorgan Chase common stock issued 26,473 Average purchase price per JPMorgan Chase common share(a) $ 45.26 Total fair value of JPMorgan Chase common stock issued $ 1,198 Bear Stearns common stock acquired for cash in the open market (24million shares at an average share price of $12.37 per share) 298 Fair value of employee stock awards (largely to be settled by shares held in the RSU Trust(b)) 242 Direct acquisition |
Fair Value Measurement
Fair Value Measurement | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Fair Value Measurement [Abstract] | |
Fair Value Measurement | NOTE 3 FAIR VALUE MEASUREMENT For a further discussion of JPMorgan Chases valuation methodologies for assets, liabilities and lending-related commitments measured at fair value and the SFAS 157 valuation hierarchy, see Note 4 on pages 129143 of JPMorgan Chases 2008 Annual Report. During the first half of 2009, there were no material changes made to the Firms valuation models. For a further discussion of the accounting for trading assets and liabilities, and private equity investments, see Note 6 on pages 146148 of JPMorgan Chases 2008 Annual Report. The following table presents the financial instruments carried at fair value as of June30, 2009, and December31, 2008, by major product category and by the SFAS 157 valuation hierarchy. Assets and liabilities measured at fair value on a recurring basis Fair value hierarchy FIN 39 Total June 30, 2009 (in millions) Level 1 Level 2 Level 3 netting(g) fair value Federal funds sold and securities purchased under resale agreements $ $ 18,996 $ $ $ 18,996 Securities borrowed 3,360 3,360 Trading assets: Debt instruments: Mortgage-backed securities: U.S. government agencies(a) 41,928 6,485 257 48,670 Residentialnonagency(b) 1,027 2,832 3,859 Commercialnonagency(b) 263 1,850 2,113 Total mortgage-backed securities 41,928 7,775 4,939 54,642 U.S. Treasury and government agencies(a) 24,302 48 24,350 Obligations of U.S. states and municipalities 7,211 2,416 9,627 Certificates of deposit, bankers acceptances and commercial paper 3,276 3,276 Non-U.S. government debt securities 28,546 27,562 726 56,834 Corporate debt securities 40,617 5,482 46,099 Loans 15,949 15,208 31,157 Asset-backed securities 1,919 7,683 9,602 Total debt instruments 94,776 104,357 36,454 235,587 Equity securities 50,712 3,994 1,509 56,215 Physical commodities(c) 984 2,498 3,482 Other 1,582 1,269 2,851 Total debt and equity instruments 146,472 112,431 39,232 298,135 Derivative receivables(d) 2,998 1,736,643 57,896 (1,700,046 ) 97,491 Total trading assets 149,470 1,849,074 97,128 (1,700,046 ) 395,626 Available-for-sale securities: Mortgage-backed securities: U.S. government agencies(a) 176,701 3,738 180,439 Residentialnonagency(b) 11,273 1,090 12,363 Commercialnonagency(b) 4,235 4,235 |
Fair Value Option
Fair Value Option | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Fair Value Option [Abstract] | |
Fair Value Option | NOTE 4 FAIR VALUE OPTION For a discussion of the primary financial instruments for which fair value elections have been made, including the determination of instrument-specific credit risk for these items, and the basis for those elections, see Note 5 on pages 144146 of JPMorgan Chases 2008 Annual Report. Changes in fair value under the fair value option election The following table presents the changes in fair value included in the Consolidated Statements of Income for the three and six months ended June30, 2009 and 2008, for items for which the fair value election was made. The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table. Three months ended June 30, 2009 2008 Total changes Total changes Principal Other in fair value Principal Other in fair value (in millions) transactions(b) income(b) recorded transactions(b) income(b) recorded Federal funds sold and securities purchased under resale agreements $ (269 ) $ $ (269 ) $ (398 ) $ $ (398 ) Securities borrowed (12 ) (12 ) 79 79 Trading assets: Debt and equity instruments, excluding loans 244 22 (c) 266 (65 ) 21 (c) (44 ) Loans reported as trading assets: Changes in instrument-specific credit risk 8 (115 )(c) (107 ) (791 ) 2 (c) (789 ) Other changes in fair value 977 495 (c) 1,472 91 16 (c) 107 Loans: Changes in instrument-specific credit risk 124 124 (239 ) (239 ) Other changes in fair value (19 ) (19 ) (5 ) (5 ) Other assets (187 )(d) (187 ) (79 )(d) (79 ) Deposits(a) (21 ) (21 ) 30 30 Federal funds purchased and securities loaned or sold under repurchase agreements 61 61 70 70 Other borrowed funds(a) (180 ) (180 ) (16 ) (16 ) Trading liabilities (13 ) (13 ) 3 3 Beneficial interests issued by consolidated VIEs (139 ) (139 ) 206 206 Other liabilities 5 5 Long-term debt: Changes in instrument-specific credit risk(a) (1,038 ) (1,038 ) 303 303 Other changes in fair value (2,978 ) (2,978 ) 408 408 Six months ended June 30, 2009 2008 Total changes Total changes Principal Other in fair v |
Derivative Instruments
Derivative Instruments | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Derivative Instruments [Abstract] | |
Derivative Instruments | NOTE 5 DERIVATIVE INSTRUMENTS Derivative instruments enable end-users to transform or mitigate exposure to credit or market risks. Counterparties to a derivative contract seek to obtain risks and rewards similar to those that could be obtained from purchasing or selling a related cash instrument without having to exchange the full purchase or sales price upfront. JPMorgan Chase makes markets in derivatives for customers and also uses derivatives to hedge or manage risks of market exposures. The majority of the Firms derivatives are entered into for market-making purposes. Trading Derivatives The Firm transacts in a variety of derivatives in its trading portfolios to meet the needs of customers (both dealers and clients) and to generate revenue through this trading activity. The Firm makes markets in derivatives for its customers (collectively, client derivatives) seeking to mitigate or transform interest rate, credit, foreign exchange, equity and commodity risks. The Firm actively manages the risks from its exposure to these derivatives by entering into other derivative transactions or by purchasing or selling other financial instruments that partially or fully offset the exposure from client derivatives. The Firm also seeks to earn a spread between the client derivatives and offsetting positions, and from the remaining open risk positions. For more information about trading derivatives, see the trading derivatives gains and losses table on page 122 of this Form 10-Q. Risk Management Derivatives The Firm manages its market exposures using various derivative instruments. Interest rate contracts are used to minimize fluctuations in earnings that are caused by changes in interest rates. Fixed-rate assets and liabilities appreciate or depreciate in market value as interest rates change. Similarly, interest income and interest expense increase or decrease as a result of variable-rate assets and liabilities resetting to current market rates, and as a result of the repayment and subsequent origination or issuance of fixed-rate assets and liabilities at current market rates. Gains and losses on the derivative instruments that are related to such assets and liabilities are expected to substantially offset this variability in earnings. The Firm generally uses interest rate swaps, forwards and futures to manage the impact of interest rate fluctuations on earnings. Foreign currency forward contracts are used to manage the foreign exchange risk associated with certain foreign currencydenominated (i.e., non-U.S.) assets and liabilities and forecasted transactions denominated in a foreign currency, as well as the Firms net investments in certain non-U.S. subsidiaries or branches whose functional currencies are not the U.S. dollar. As a result of fluctuations in foreign currencies, the U.S. dollarequivalent values of the foreign currencydenominated assets and liabilities or forecasted revenue or expense increase or decrease. Gains or losses on the derivative instruments that are related to the foreign currencydenominated assets or liabilities, or forecasted transactions, are expected to substantially offset this variability. |
Other Noninterest Revenue
Other Noninterest Revenue | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Other Noninterest Revenue [Abstract] | |
Other Noninterest Revenue | NOTE 6 OTHER NONINTEREST REVENUE For a discussion of the components of and accounting policies for the Firms other noninterest revenue, see Note 6 and Note 7 on pages 146149 of JPMorgan Chases 2008 Annual Report. The following table presents the components of investment banking fees. Three months ended June 30, Six months ended June 30, (in millions) 2009 2008 2009 2008 Underwriting: Equity $ 949 $ 542 $ 1,257 $ 901 Debt 766 717 1,369 1,087 Total underwriting 1,715 1,259 2,626 1,988 Advisory 391 353 866 840 Total investment banking fees $ 2,106 $ 1,612 $ 3,492 $ 2,828 The following table presents principal transactions revenue. Three months ended June 30, Six months ended June 30, (in millions) 2009 2008 2009 2008 Trading revenue $ 3,155 $ 538 $ 5,644 $ (465 ) Private equity gains (losses)(a) (58 ) 214 (546 ) 414 Principal transactions $ 3,097 $ 752 $ 5,098 $ (51 ) (a)Includes revenue on private equity investments held in the Private Equity business within Corporate/Private Equity, and those held in other business segments. The following table presents components of asset management, administration and commissions. Three months ended June 30, Six months ended June 30, (in millions) 2009 2008 2009 2008 Asset management: Investment management fees $ 1,172 $ 1,451 $ 2,255 $ 2,874 All other asset management fees 78 143 159 290 Total asset management fees 1,250 1,594 2,414 3,164 Total administration fees(a) 498 690 953 1,360 Commission and other fees: Brokerage commissions 762 730 1,449 1,508 All other commissions and fees 614 614 1,205 1,192 Total commissions and fees 1,376 1,344 2,654 2,700 Total asset management, administration and commissions $ 3,124 $ 3,628 $ 6,021 $ 7,224 (a) Includes fees for custody, securities lending, funds services and securities clearance. |
Interest Income and Interest Ex
Interest Income and Interest Expense | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Interest Income and Interest Expense [Abstract] | |
Interest Income and Interest Expense | NOTE 7 INTEREST INCOME AND INTEREST EXPENSE Details of interest income and interest expense were as follows. Three months ended June 30, Six months ended June 30, (in millions) 2009 2008 2009 2008 Interest income(a) Loans $ 9,825 $ 8,430 $ 20,333 $ 17,715 Securities 3,178 1,398 6,038 2,577 Trading assets 2,954 4,117 6,168 8,656 Federal funds sold, securities purchased under resale agreements and securities borrowed 272 2,057 1,008 4,250 Deposits with banks 246 373 689 709 Other assets(b) 74 154 239 154 Total interest income 16,549 16,529 34,475 34,061 Interest expense(a) Interest-bearing deposits 1,165 3,592 2,851 8,200 Short-term and other liabilities(c) 876 2,679 1,967 5,910 Long-term debt 1,781 1,864 3,525 3,766 Beneficial interests issued by consolidated VIEs 57 100 95 232 Total interest expense 3,879 8,235 8,438 18,108 Net interest income 12,670 8,294 26,037 15,953 Provision for credit losses 8,031 3,455 16,627 7,879 Net interest income after provision for credit losses $ 4,639 $ 4,839 $ 9,410 $ 8,074 (a) Interest income and interest expense include the current-period interest accruals for financial instruments measured at fair value, except for financial instruments containing embedded derivatives that would be separately accounted for in accordance with SFAS 133 absent the SFAS 159 fair value election; for those instruments, all changes in fair value, including any interest elements, are reported in principal transactions revenue. (b) Predominantly margin loans. (c) Includes brokerage customer payables. |
Pension and Other Postretiremen
Pension and Other Postretirement Employee Benefit Plans | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Pension and Other Postretirement Employee Benefit Plans [Abstract] | |
Pension and Other Postretirement Employee Benefit Plans | NOTE 8 PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFIT PLANS For a discussion of JPMorgan Chases pension and other postretirement employee benefit (OPEB) plans, see Note 9 on pages 149155 of JPMorgan Chases 2008 Annual Report. The following table presents the components of net periodic benefit cost reported in the Consolidated Statements of Income for the Firms U.S. and non-U.S. defined benefit pension and OPEB plans. Defined benefit pension plans U.S. Non-U.S. OPEB plans Three months ended June 30, (in millions) 2009 2008 2009 2008 2009 2008 Components of net periodic benefit cost Benefits earned during the period $ 80 $ 64 $ 7 $ 7 $ 1 $ 1 Interest cost on benefit obligations 128 122 30 38 13 18 Expected return on plan assets (146 ) (180 ) (28 ) (41 ) (24 ) (24 ) Amortization: Net loss 77 11 7 Prior service cost (credit) 1 1 (3 ) (4 ) Net periodic benefit cost 140 7 20 11 (13 ) (9 ) Other defined benefit pension plans(a) 4 3 4 5 NA NA Total defined benefit plans 144 10 24 16 (13 ) (9 ) Total defined contribution plans 76 70 63 82 NA NA Total pension and OPEB cost included in compensation expense $ 220 $ 80 $ 87 $ 98 $ (13 ) $ (9 ) Defined benefit pension plans U.S. Non-U.S. OPEB plans Six months ended June 30, (in millions) 2009 2008 2009 2008 2009 2008 Components of net periodic benefit cost Benefits earned during the period $ 157 $ 128 $ 14 $ 14 $ 2 $ 3 Interest cost on benefit obligations 256 244 56 76 31 37 Expected return on plan assets (292 ) (360 ) (52 ) (82 ) (48 ) (49 ) Amortization: Net loss 153 21 14 Prior service cost (credit) 2 2 (7 ) (8 ) Net periodic benefit cost 276 14 39 22 (22 ) (17 ) Other defined benefit pension plans(a) 7 6 8 9 NA NA Total defined benefit plans 283 20 47 31 (22 ) (17 ) Total defined contribution plans 154 136 122 162 NA NA Total pension and OPEB cost included in compensation expense $ 437 $ 156 $ 169 $ 193 $ (22 ) $ (17 ) (a) Includes various defined benefit pension plans, which are individually immaterial. The fair value of plan assets for the U.S. defined benefit pension and OPEB plans and the material non-U.S. defined benefit pension plans were $9.2billion and $2.2billion, respectively, as of June30, 2009, |
Employee Stock Based Incentives
Employee Stock Based Incentives | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Employee Stock-Based Incentives [Abstract] | |
Employee Stock-Based Incentives | NOTE 9 EMPLOYEE STOCK-BASED INCENTIVES For a discussion of the accounting policies and other information relating to employee stock-based compensation, see Note 10 on pages 155157 of JPMorgan Chases 2008 Annual Report. The Firm recognized noncash compensation expense related to its various employee stock-based incentive plans of $884million and $728million for the quarters ended June30, 2009 and 2008, respectively, and $1.7billion and $1.4billion in the first six months of 2009 and 2008, respectively, in its Consolidated Statements of Income. These amounts included an accrual for the estimated cost of stock awards to be granted to full-career eligible employees of $192million and $140million for the quarters ended June30, 2009 and 2008, respectively, and $332million and $274 million for the first six months ended June30, 2009 and 2008, respectively. In the first quarter of 2009, the Firm granted 130million restricted stock units (RSUs), with a grant date fair value of $19.52 per RSU, in connection with its annual incentive grant. |
Noninterest Expense
Noninterest Expense | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Noninterest Expense [Abstract] | |
Noninterest Expense | NOTE 10 NONINTEREST EXPENSE Merger costs Costs associated with the Bear Stearns merger and the Washington Mutual transaction are reflected in the merger costs caption of the Consolidated Statements of Income. For a further discussion of the Bear Stearns merger and the Washington Mutual transaction, see Note 2 on pages 9699 of this Form 10-Q. A summary of merger-related costs is shown in the following table. Three months ended June 30, 2009 (in millions) Bear Stearns Washington Mutual Total 2008 Expense category Compensation(a) $ (16 ) $ 77 $ 61 $ 126 Occupancy(a) (3 ) 18 15 Technology and communications and other 3 64 67 29 Total(b)(c) $ (16 ) $ 159 $ 143 $ 155 Six months ended June 30, 2009 (in millions) Bear Stearns Washington Mutual Total 2008 Expense category Compensation(a) $ (10 ) $ 213 $ 203 $ 126 Occupancy(a) (3 ) 23 20 Technology and communications and other 17 108 125 29 Total(b)(c) $ 4 $ 344 $ 348 $ 155 (a) Represents partial reversals of merger costs accrued in prior periods. (b) With the exception of occupancy- and technology-related write-offs, all of the costs in the table required the expenditure of cash. (c) 2008 Merger Activity is related to Bear Stearns only. The table below shows changes in the merger reserve balance related to costs associated with the transactions. Six months ended June 30, 2009 (in millions) Bear Stearns Washington Mutual Total 2008 Merger reserve balance, beginning of period $ 327 $ 441 $ 768 $ Recorded as merger costs 4 344 348 155 Recorded as goodwill (5 ) (5 ) 1,112 Utilization of merger reserve (257 ) (583 ) (840 ) (174 ) Merger reserve balance, end of period(a) $ 69 $ 202 $ 271 $ 1,093 (a) 2008 Merger Activity is related to Bear Stearns only. |
Securities
Securities | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Securities [Abstract] | |
Securities | NOTE 11 SECURITIES Securities are classified as AFS, held-to-maturity (HTM) or trading. For additional information regarding AFS and HTM securities, see Note 12 on pages 158162 of JPMorgan Chases 2008 Annual Report. Trading securities are discussed in Note 5 on pages 116124 of this Form 10-Q. Securities gains and losses The following table presents realized gains and realized and unrealized losses that were recognized in income from AFS securities. Three months ended June 30, Six months ended June 30, (in millions) 2009 2008 2009 2008 Realized gains $ 743 $ 675 $ 1,153 $ 812 Realized losses (210) (28 ) (417) (132 ) Net realized gains 533 647 736 680 Unrealized credit losses included in securities gains (186) (b) (191) (b) Net securities gains(a) $ 347 $ 647 $ 545 $ 680 (a) Proceeds from securities sold were within approximately 2% of amortized cost. (b) Includes impairment losses recognized in income for the three and six months ended June30, 2009, on certain subprime and prime mortgage-backed securities and obligations of U.S. states and municipalities. The amortized cost and estimated fair value of AFS and HTM securities were as follows for the dates indicated. June 30, 2009 December 31, 2008 Gross Gross Gross Gross Amortized unrealized unrealized Fair Amortized unrealized unrealized Fair (in millions) cost gains losses value cost gains losses value Available-for-sale debt securities Mortgage-backed securities(a): U.S. government agencies(b) $ 179,086 $ 2,219 $ 866 $ 180,439 $ 115,198 $ 2,414 $ 227 $ 117,385 Residential: Prime and Alt-A 7,540 45 1,711 5,874 8,826 4 1,935 6,895 Subprime 55 55 213 19 194 Non-U.S. 6,555 123 244 6,434 2,233 24 182 2,075 Commercial 4,738 7 510 4,235 4,623 684 3,939 Total mortgage-backed securities $ 197,974 $ 2,394 $ 3,331 $ 197,037 $ 131,093 $ 2,442 $ 3,047 $ 130,488 U.S. Treasury and government agencies(b) 34,940 108 370 34,678 10,402 52 97 10,357 Obligations of U.S. states and municipalities 6,043 157 194 6,006 3,479 94 238 3,335 Certificates of deposit 5,587 16 5,603 17,226 64 8 17,282 Non-U.S. government debt securities 16,221 162 32 16,351 8,173 173 2 8,344 Corporate debt securities 47,826 520 70 48,276 9,358 257 61 9,554 Asset-backed securiti |
Securities Financing Activities
Securities Financing Activities | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Securities Financing Activities [Abstract] | |
Securities Financing Activities | NOTE 12 SECURITIES FINANCING ACTIVITIES For a discussion of accounting policies relating to securities financing activities, see Note 13 on pages 162-163 of JPMorgan Chases 2008 Annual Report. For further information regarding securities borrowed and securities lending agreements for which the SFAS 159 fair value option has been elected, see Note 4 on pages 114-116 of this Form 10-Q. The following table details the components of collateralized financings. (in millions) June 30, 2009 December 31, 2008 Securities purchased under resale agreements(a) $ 158,861 $ 200,265 Securities borrowed(b) 129,263 124,000 Securities sold under repurchase agreements(c) $ 287,092 $ 174,456 Securities loaned 6,403 6,077 (a) Includes resale agreements of $19.0billion and $20.8billion accounted for at fair value at June30, 2009, and December31, 2008, respectively. (b) Includes securities borrowed of $3.4billion accounted for at fair value at both June30, 2009, and December31, 2008. (c) Includes repurchase agreements of $3.0billion accounted for at fair value at both June30, 2009, and December31, 2008. JPMorgan Chase pledges certain financial instruments it owns to collateralize repurchase agreements and other securities financings. Pledged securities that can be sold or repledged by the secured party are identified as financial instruments owned (pledged to various parties) on the Consolidated Balance Sheets. At June30, 2009, the Firm received securities as collateral that could be repledged, delivered or otherwise used with a fair value of approximately $597.5billion. This collateral was generally obtained under resale or securities-borrowing agreements. Of these securities, approximately $435.6 billion were repledged, delivered or otherwise used, generally as collateral under repurchase agreements, securities lending agreements or to cover short sales. |
Loans
Loans | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Loans [Abstract] | |
Loans | NOTE 13 LOANS The accounting for a loan is based on whether it is originated or purchased, and whether the loan is used in an investing or trading strategy. The measurement framework for loans in the Consolidated Financial Statements is one of the following: At the principal amount outstanding, net of the allowance for loan losses, unearned income and any net deferred loan fees or costs, for loans held-for-investment (other than purchased credit-impaired loans); At the lower of cost or fair value, with valuation changes recorded in noninterest revenue, for loans that are classified as held-for-sale; At fair value, with changes in fair value recorded in noninterest revenue, for loans classified as trading assets or risk managed on a fair value basis; or Purchased credit-impaired loans held-for-investment are accounted for under SOP 03-3 and initially measured at fair value, which includes estimated future credit losses. Accordingly, an allowance for loan losses related to these loans is not recorded at the acquisition date. For a detailed discussion of accounting policies relating to loans, see Note 14 on pages 163-166 of JPMorgan Chases 2008 Annual Report. See Note 4 on pages 114-116 of this Form 10-Q for further information on the Firms elections of fair value accounting under SFAS 159. See Note 3 on pages 99-114 of this Form 10-Q for further information on loans carried at fair value and classified as trading assets. The composition of the Firms aggregate loan portfolio at each of the dates indicated was as follows. (in millions) June 30, 2009 December 31, 2008 U.S. wholesale loans: Commercial and industrial $ 59,096 $ 68,709 Real estate 61,754 64,214 Financial institutions 18,083 20,615 Government agencies 5,826 5,918 Other 24,619 22,330 Loans held-for-sale and at fair value 2,826 4,990 Total U.S. wholesale loans 172,204 186,776 Non-U.S. wholesale loans: Commercial and industrial 24,052 27,941 Real estate 2,871 2,667 Financial institutions 10,173 16,381 Government agencies 688 603 Other 16,918 18,711 Loans held-for-sale and at fair value 4,719 8,965 Total non-U.S. wholesale loans 59,421 75,268 Total wholesale loans:(a) Commercial and industrial 83,148 96,650 Real estate(b) 64,625 66,881 Financial institutions 28,256 36,996 Government agencies 6,514 6,521 Other 41,537 41,041 Loans held-for-sale and at fair value(c) 7,545 13,955 Total wholesale loans 231,625 262,044 Total consumer loans:(d) Home equity 108,229 114,335 Prime mortgage 68,878 72,266 Subprime mortgage 13,825 15,330 Option ARMs 9,034 9,018 Auto loans 42,887 42,603 Credit card(e)(f) 85,736 104,746 Other 33,041 33,715 Loans held-for-sale(g) 1,940 2, |
Allowance For Credit Losses
Allowance For Credit Losses | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Allowance For Credit Losses [Abstract] | |
Allowance For Credit Losses | NOTE 14 ALLOWANCE FOR CREDIT LOSSES For further discussion of the allowance for credit losses and the related accounting policies, see Note 15 on pages 166-168 of JPMorgan Chases 2008 Annual Report. The table below summarizes the changes in the allowance for loan losses. Six months ended June 30, (in millions) 2009 2008 Allowance for loan losses at January 1 $ 23,164 $ 9,234 Gross charge-offs 10,937 4,524 Gross (recoveries) (522 ) (488 ) Net charge-offs 10,415 4,036 Provision for loan losses 16,540 8,043 Other(a) (217 ) 5 Allowance for loan losses at June 30 $ 29,072 $ 13,246 Components: Asset-specific $ 2,240 $ 235 Formula-based 26,832 13,011 Total allowance for loan losses $ 29,072 $ 13,246 (a) Other predominantly includes a reclassification in 2009 related to the issuance and retention of securities from the Chase Issuance Trust. See Note 15 on pages 139-147 of this Form 10-Q. The table below summarizes the changes in the allowance for lending-related commitments. Six months ended June 30, (in millions) 2009 2008 Allowance for lending-related commitments at January 1 $ 659 $ 850 Provision for lending-related commitments 87 (164 ) Allowance for lending-related commitments at June 30 $ 746 $ 686 Components: Asset-specific $ 111 $ 16 Formula-based 635 670 Total allowance for lending-related commitments $ 746 $ 686 |
Loan Securitizations
Loan Securitizations | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Loan Securitizations [Abstract] | |
Loan Securitizations | NOTE 15 LOAN SECURITIZATIONS For a discussion of the accounting policies relating to loan securitizations, see Note 16 on pages 168-176 of JPMorgan Chases 2008 Annual Report. JPMorgan Chase securitizes and sells a variety of loans, including residential mortgage, credit card, automobile, student, and commercial (primarily related to real estate) loans. JPMorgan Chasesponsored securitizations use special-purpose entities (SPEs) as part of the securitization process. These SPEs are structured to meet the definition of a qualifying special-purpose entity (QSPE) (for a further discussion, see Note 1 on page 122 of JPMorgan Chases 2008 Annual Report); accordingly, the assets and liabilities of securitization-related QSPEs are not reflected on the Firms Consolidated Balance Sheets (except for retained interests, as described below). The primary purposes of these securitization vehicles are to meet investor needs and to generate liquidity for the Firm through the sale of loans to the QSPEs, which are financed through the issuance of fixed- or floating-rate asset-backed securities. The following table presents the total unpaid principal amount of assets held in JPMorgan Chasesponsored securitization entities, for which sale accounting was achieved and to which the Firm has continuing involvement, at June30, 2009, and December31, 2008. Continuing involvement includes servicing the loans, holding senior or subordinated interests, recourse or guarantee arrangements and derivative transactions. In certain instances, the Firms only continuing involvement is servicing the loans. Principal amount outstanding JPMorgan Chase interest in securitized assets(e)(f)(g)(h) Assets held in QSPEs Total interests June 30, 2009 Total assets held by with continuing Trading AFS Other held by (in billions) Firm-sponsored QSPEs involvement assets(i) securities(i) Loans assets(i) JPMorgan Chase Securitization-related: Credit card $ 101.7 $ 101.7 (d) $ 0.2 $ 14.3 $ 10.5 $ 8.2 $ 33.2 Residential mortgage: Prime(a) 211.3 194.8 1.1 0.6 1.7 Subprime 55.1 48.1 0.1 0.1 Option ARMs 45.3 45.3 0.1 0.1 Commercial and other(b) 159.6 32.7 1.6 0.6 2.2 Student loans 1.0 1.0 0.1 0.1 Auto 0.4 0.4 Total(c) $ 574.4 $ 424.0 $ 2.9 $ 15.7 $ 10.5 $ 8.3 $ 37.4 Principal amount outstanding JPMorgan Chase interest in securitized assets(e)(f)(g)(h) Assets held in QSPEs Total interests December 31, 2008 Total assets held by with continuing Trading AFS Other held |
Variable Interest Entities
Variable Interest Entities | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | NOTE 16 VARIABLE INTEREST ENTITIES Refer to Note 1 on page 122 and Note 17 on pages 177186 of JPMorgan Chases 2008 Annual Report for a further description of JPMorgan Chases policies regarding consolidation of variable interest entities (VIEs) and the Firms principal involvement with VIEs. Multi-seller conduits The following table summarizes the Firms involvement with Firm-administered multi-seller conduits. On May31, 2009, the Firm consolidated one of the Firm-administered multi-seller conduits due to the redemption of the expected loss note (ELN). There were no consolidated Firm-administered multi-seller conduits as of December31, 2008. June 30, 2009 (in billions) Consolidated Nonconsolidated December 31, 2008 Total assets held by conduits $ 6.9 $ 23.0 $ 42.9 Total commercial paper issued by conduits 6.9 23.0 43.1 Liquidity and credit enhancements Deal-specific liquidity facilities (primarily asset purchase agreements) 9.8 31.6 (b) 55.4 (b) Program-wide liquidity facilities 4.0 13.0 17.0 Program-wide credit enhancements 0.4 2.0 3.0 Maximum exposure to loss(a) 9.8 32.3 56.9 (a) The Firms maximum exposure to loss, calculated separately for each multi-seller conduit, includes the Firms exposure to both deal-specific liquidity facilities and program-wide credit enhancements. For purposes of calculating the Firms maximum exposure to loss, the Firm-provided, program-wide credit enhancement is limited to deal-specific liquidity facilities provided by third parties. (b) The accounting for these agreements is further discussed in Note 33 on pages 206210 of JPMorgan Chases 2008 Annual Report. The carrying value related to asset purchase agreements was $112million and $147million at June30, 2009, and December31, 2008, respectively, of which $110million and $138million, respectively, represented the remaining fair value of the guarantee under FIN 45. The Firm has recorded this guarantee in other liabilities, with an offsetting entry recognized in other assets for the net present value of the future premium receivable under the contracts. Assets funded by nonconsolidated multi-seller conduits The following table presents information on the commitments and assets held by JPMorgan Chases nonconsolidated Firm-administered multi-seller conduits as of June30, 2009, and December31, 2008. June 30, 2009 December 31, 2008 Unfunded Commercial Liquidity Liquidity Unfunded Commercial Liquidity Liquidity commitments to paperfunded provided by provided commitments to paperfunded provided by provided (in billions) Firms clients assets third parties by Firm Firms clients assets third parties by Firm Asset types: Credit card $ 1.8 $ 4.5 $ $ 6.3 $ 3.0 $ 8.9 $ 0.1 $ 11.8 Vehicle loans and leases 1. |
Goodwill and All Other Intangib
Goodwill and All Other Intangible Assets | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Goodwill and All Other Intangible Assets [Text Block] | |
Goodwill and All Other Intangible Assets | NOTE 17 GOODWILL AND ALL OTHER INTANGIBLE ASSETS For a discussion of accounting policies related to goodwill and other intangible assets, see Note 18 on pages 186-189 of JPMorgan Chases 2008 Annual Report. Goodwill and all other intangible assets consist of the following. (in millions) June 30, 2009 December 31, 2008 Goodwill $ 48,288 $ 48,027 Mortgage servicing rights 14,600 9,403 Purchased credit card relationships 1,431 1,649 All other intangible assets: Other credit cardrelated intangibles $ 710 $ 743 Core deposit intangibles 1,399 1,597 Other intangibles 1,542 1,592 Total all other intangible assets $ 3,651 $ 3,932 Goodwill The $261million increase in goodwill from December31, 2008, was largely due to purchase accounting adjustments related to the Bear Stearns merger, as well as an acquisition of a commodities business by IB. For additional information related to the Bear Stearns merger, see Note 2 on pages 96-99 of this Form 10-Q. Goodwill was not impaired at June30, 2009, or December31, 2008, nor was any goodwill written off due to impairment during either of the six month periods ended June30, 2009 or 2008. Goodwill attributed to the business segments was as follows. (in millions) June 30, 2009 December 31, 2008 Investment Bank $ 4,955 $ 4,765 Retail Financial Services 16,839 16,840 Card Services 14,066 13,977 Commercial Banking 2,870 2,870 Treasury Securities Services 1,660 1,633 Asset Management 7,521 7,565 Corporate/Private Equity 377 377 Total goodwill $ 48,288 $ 48,027 Mortgage servicing rights For a further description of the MSR asset, interest rate risk management, and the valuation methodology of MSRs, see Notes 4 and 18 on pages 132 and 186-189, respectively, of JPMorgan Chases 2008 Annual Report. The fair value of MSRs is sensitive to changes in interest rates, including their effect on prepayment speeds. JPMorgan Chase uses, or has used, combinations of derivatives and trading instruments to manage changes in the fair value of MSRs. The intent is to offset any changes in the fair value of MSRs with changes in the fair value of the related risk management instruments. MSRs decrease in value when interest rates decline. Conversely, securities (such as mortgage-backed securities), principal-only certificates and certain derivatives (when the Firm receives fixed-rate interest payments) increase in value when interest rates decline. The following table summarizes MSR activity for the three and six months ended June30, 2009 and 2008. Three months ended June 30, Six months ended June 30, (in millions, except where otherwise noted) 2009 2008 2009 2008 Fair value at the beginning of the period $ 10,634 $ 8,419 $ 9,403 $ 8,632 MSR activity Originations of MSRs 984 1,185 1,978 1,922 Purchase of MSRs |
Deposits
Deposits | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
[DepositsAbstract] | |
Deposits | NOTE 18 DEPOSITS For further discussion of deposits, see Note 20 on page 190 in JPMorgan Chases 2008 Annual Report. At June30, 2009, and December31, 2008, noninterest-bearing and interest-bearing deposits were as follows. (in millions) June 30, 2009 December 31, 2008 U.S. offices: Noninterest-bearing $ 192,247 $ 210,899 Interest-bearing (included $1,002 and $1,849 at fair value at June30, 2009, and December31, 2008, respectively) 433,862 511,077 Non-U.S. offices: Noninterest-bearing 8,291 7,697 Interest-bearing (included $2,785 and $3,756 at fair value at June30, 2009, and December31, 2008, respectively) 232,077 279,604 Total $ 866,477 $ 1,009,277 On May20, 2009, the Helping Families Save Their Homes Act of 2009 was signed into law. The Act extends through December31, 2013, the FDICs temporary standard maximum deposit insurance amount, which was increased on October3, 2008, from $100,000 to $250,000 per depositor per institution. |
Other Borrowed Funds
Other Borrowed Funds | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Other Borrowed Funds [Abstract] | |
Other Borrowed Funds | NOTE 19 OTHER BORROWED FUNDS The following table details the components of other borrowed funds. (in millions) June 30, 2009 December 31, 2008 Advances from Federal Home Loan Banks(a) $ 48,838 $ 70,187 Nonrecourse advances FRBB(b) 14,473 11,192 Other(c) 10,657 51,021 Total other borrowed funds $ 73,968 $ 132,400 (a) Maturities of advances from the FHLBs were $39.6billion, $7.6billion, and $719million in each of the 12-month periods ending June30, 2010, 2011, and 2013, respectively, and $940 million maturing after June30, 2014. Maturities for the 12month period ending June30, 2012 and 2014 were not material. (b) On September19, 2008, the Federal Reserve Board established a special lending facility, the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), to provide liquidity to eligible U.S. money market mutual funds (MMMFs). Under the AMLF, banking organizations must use the loan proceeds to finance their purchases of eligible high-quality asset-backed commercial paper (ABCP) investments from MMMFs, which are pledged to secure nonrecourse advances from the Federal Reserve Bank of Boston (FRBB). Participating banking organizations do not bear any credit or market risk related to the ABCP investments they hold under this facility; therefore, the ABCP investments held are not assessed any regulatory capital. The AMLF will be in effect until October30, 2009. The nonrecourse advances from the FRBB were elected under the fair value option and recorded in other borrowed funds; the corresponding ABCP investments were also elected under the fair value option and recorded in other assets. (c) Includes zero and $30billion of advances from the Federal Reserve under the Federal Reserves Term Auction Facility (TAF) at June30, 2009, and December31, 2008, respectively, pursuant to which the Federal Reserve auctions term funds to depository institutions that are eligible to borrow under the primary credit program. The TAF allows all eligible depository institutions to place a bid for an advance from its local Federal Reserve Bank at an interest rate set by an auction. All advances are required to be fully collateralized. The TAF is designed to improve liquidity by making it easier for sound institutions to borrow when the markets are not operating efficiently. |
Preferred Stock
Preferred Stock | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Preferred Stock [Abstract] | |
Preferred Stock | NOTE 20 PREFERRED STOCK JPMorgan Chase is authorized to issue 200million shares of preferred stock, in one or more series, with a par value of $1 per share. For a further discussion of preferred stock, see Note 24 on pages 193-194 of JPMorgan Chases 2008 Annual Report. The following is a summary of preferred stock outstanding as of June30, 2009, and December31, 2008. Shares at Outstanding at Share value and Contractual redemption June 30, December 31, June 30, December 31, Earliest rate in effect at (in millions) price per share(b) 2009 2008 2009 2008 redemption date June 30, 2009 Cumulative Preferred Stock, SeriesE(a) $ 200 818,113 818,113 $ 164 $ 164 Any time 6.15 % Cumulative Preferred Stock, SeriesF(a) 200 428,825 428,825 86 86 Any time 5.72 Cumulative Preferred Stock, SeriesG(a) 200 511,169 511,169 102 102 Any time 5.49 Fixed to Floating Rate Noncumulative Perpetual Preferred Stock, SeriesI(a) 10,000 600,000 600,000 6,000 6,000 4/30/2018 7.90 Noncumulative Perpetual Preferred Stock, SeriesJ(a) 10,000 180,000 180,000 1,800 1,800 9/1/2013 8.63 Fixed Rate Cumulative Perpetual Preferred Stock, SeriesK 10,000 2,500,000 23,787 (c) NA Total preferred stock 2,538,107 5,038,107 $ 8,152 $ 31,939 (a) Represented by depositary shares. (b) Redemption price includes amount shown in the table plus any accrued but unpaid dividends. (c) Represents the carrying value as of December31, 2008. The redemption value was $25.0 billion. Redemption of SeriesK preferred stock On June17, 2009, the Firm redeemed all of the outstanding shares of SeriesK preferred stock issued to the U.S. Treasury, and repaid the full $25.0billion principal amount. Following discussions with the U.S. Treasury regarding the warrant that was issued to the U.S. Treasury in connection with the U.S. Treasurys purchase of the SeriesK preferred stock, on July7, 2009, JPMorgan Chase notified the U.S. Treasury that it had revoked its warrant repurchase notice. JPMorgan Chase understands, based on the U.S. Treasurys public statements, that the U.S. Treasury intends to pursue a public auction of the warrant. The U.S. Treasury has advised JPMorgan Chase that the Firm will be permitted to participate in any such auction. During the period that shares of the SeriesK preferred stock were outstanding, no dividends could be declared or paid on stock ranking junior or equally with the SeriesK preferred stock, unless all accrued and unpaid dividends for all past dividend periods on the SeriesK preferred stock were fully paid. Also, the U.S. Treasurys consent was required until October28, 2011, for any increase in dividends on the Firms common stock above $0.38 per share. In addition, the Firm could not |
Earnings Per Share
Earnings Per Share | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Earnings Per Share [Abstract] | |
Earnings per share | NOTE 21 EARNINGS PER SHARE For a discussion of the computation of basic and diluted earnings per share (EPS), see Note 26 on page 195 of JPMorgan Chases 2008 Annual Report. Effective January1, 2009, the Firm implemented FSP EITF 03-6-1, which clarifies that unvested stock-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, dividends) are participating securities and should be included in the EPS calculation using the two-class method. JPMorgan Chase grants restricted stock and RSUs to certain employees under its stock-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the FSPs definition of participating securities. Under the two class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends. EPS data for the prior periods were revised as required by the FSP. The following table presents the calculation of basic and diluted EPS for the three and six months ended June30, 2009 and 2008. Three months ended June 30, Six months ended June 30, (in millions, except per share amounts) 2009 2008 2009 2008 Basic earnings per share Net income $ 2,721 $ 2,003 $ 4,862 $ 4,376 Less: Preferred stock dividends 473 90 1,002 90 Less: Accelerated amortization from redemption of preferred stock issued to the U.S. Treasury(a) 1,112 1,112 Net income applicable to common equity 1,136 1,913 2,748 4,286 Less: Dividends and undistributed earnings allocated to participating securities 64 70 157 153 Net income applicable to common stockholders(b) $ 1,072 $ 1,843 $ 2,591 $ 4,133 Total weighted-average basic shares outstanding 3,811.5 3,426.2 3,783.6 3,411.1 Net income per share(a)(c) $ 0.28 $ 0.54 $ 0.68 $ 1.21 Three months ended June 30, Six months ended June 30, (in millions, except per share amounts) 2009 2008 2009 2008 Diluted earnings per share Net income applicable to common stockholders(b) $ 1,072 $ 1,843 $ 2,591 $ 4,133 Total weighted-average basic shares outstanding 3,811.5 3,426.2 3,783.6 3,411.1 Add: Employee stock options and SARs(d) 12.6 26.9 7.8 27.1 Total weighted-average diluted shares outstanding(e) 3,824.1 3,453.1 3,791.4 3,438.2 Net income per share(a)(c) $ 0.28 $ 0.53 $ 0.68 $ 1.20 (a) The calculation of basic and diluted EPS for the three and six months ended June30, 2009 includes a one-time noncash reduction of $1.1billion, or $0.27 and $0.28 per share, respectively, resulting from the redemption of SeriesK preferred stock |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Accumulated other Comprehensive Income (Loss) [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 22 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss)includes the after-tax change in unrealized gains and losses on AFS securities, SFAS 52 foreign currency translation adjustments (including the impact of related derivatives), SFAS 133 cash flow hedging activities and SFAS 158 net loss and prior service cost (credit)related to the Firms defined benefit pension and OPEB plans. Net loss and prior service costs Accumulated Six months ended Unrealized gains Translation (credit) of defined other June 30, 2009 (losses) on AFS adjustments, benefit pension comprehensive (in millions) securities(a) net of hedges Cash flow hedges and OPEB plans income (loss) Balance at January1, 2009 $ (2,101 ) $ (598 ) $ (202 ) $ (2,786 ) $ (5,687 ) Net change 1,576 (b) 491 (d) 95 (e) 87 (f) 2,249 Balance at June30, 2009 $ (525) (c) $ (107 ) $ (107 ) $ (2,699 ) $ (3,438 ) Net loss and prior service costs Accumulated Six months ended Unrealized gains Translation (credit) of defined other June 30, 2008 (losses) on AFS adjustments, benefit pension comprehensive (in millions) securities(a) net of hedges Cash flow hedges and OPEB plans income (loss) Balance at January1, 2008 $ 380 $ 8 $ (802 ) $ (503 ) $ (917 ) Net change (851 )(b) 109 (d) 35 (e) 58 (f) (649 ) Balance at June30, 2008 $ (471 ) $ 117 $ (767 ) $ (445 ) $ (1,566 ) (a) Represents the after-tax difference between the fair value and amortized cost of the AFS securities portfolio and retained interests in securitizations recorded in other assets. (b) The net change for the six months ended June30, 2009, was due primarily to the narrowing of spreads on U.S. government agency mortgage-backed securities and credit card ABS positions as a result of improvement in the credit environment. The net change for the six months ended June30, 2008, was due primarily to the net increase in interest rates on agency mortgage-backed pass-through securities and market spreads. (c) Includes after-tax unrealized losses of $(426) million not related to credit on debt securities for which credit losses have been recognized in income. (d) Includes $509million and $215million at June30, 2009 and 2008, respectively, of after-tax gains/(losses) on foreign currency translation from operations for which the functional currency is other than the U.S. dollar, partially offset by $(18) million and $(106) million, respectively, of after-tax gains/(losses) on hedges. The Firm may not hedge its entire exposure to foreign currency translation on net investments in foreign operations. (e) The net change for the six months ended June30, 2009, included $86million of after-tax gains recognized in income, and $181million of after-tax gains, representing the net chan |
Commitments and Contingencies
Commitments and Contingencies | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 23 COMMITMENTS AND CONTINGENCIES For a discussion of the Firms commitments and contingencies, see Note 31 on page 201 of JPMorgan Chases 2008 Annual Report. Litigation reserve The Firm maintains litigation reserves for certain of its outstanding litigation. In accordance with the provisions of SFAS 5, JPMorgan Chase accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. When the Firm is named a defendant in a litigation and may be subject to joint and several liability and a judgment sharing agreement is in place, the Firm recognizes expense and obligations net of amounts expected to be paid by other signatories to the judgment-sharing agreement. While the outcome of litigation is inherently uncertain, management believes, in light of all information known to it at June30, 2009, the Firms litigation reserves were adequate at such date. Management reviews litigation reserves at least quarterly, and the reserves may be increased or decreased in the future to reflect further relevant developments. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding litigation and, with respect to such litigation, intends to continue to defend itself vigorously, litigating or settling cases according to managements judgment as to what is in the best interests of stockholders. |
Off Balance Sheet Lending Relat
Off Balance Sheet Lending Related Financial Instruments and Guarantees | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Off-Balance Sheet Lending Related-Financial Instruments and Guarantees [Abstract] | |
Off-Balance Sheet Lending Related-Financial Instruments and Guarantees | NOTE 24 OFF-BALANCE SHEET LENDING-RELATED FINANCIAL INSTRUMENTS AND GUARANTEES JPMorgan Chase utilizes lending-related financial instruments, such as commitments and guarantees, to meet the financing needs of its customers. The contractual amount of these financial instruments represents the maximum possible credit risk should the counterparties draw down on these commitments or the Firm fulfills its obligation under these guarantees, and the counterparties subsequently fail to perform according to the terms of these contracts. For a discussion of off-balance sheet lending-related financial instruments and guarantees, and the Firms related accounting policies, see Note 33 on pages 206-210 of JPMorgan Chases 2008 Annual Report. To provide for the risk of loss inherent in wholesale-related contracts, an allowance for credit losses on lending-related commitments is maintained. See Note 14 on page 139 of this Form 10-Q for further discussion regarding the allowance for credit losses on lending-related commitments. The following table summarizes the contractual amounts of off-balance sheet lending-related financial instruments and guarantees and the related allowance for credit losses on lending-related commitments at June30, 2009, and December31, 2008. The amounts in the table below for credit card and home equity lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel these lines of credit by providing the borrower prior notice or, in some cases, without notice as permitted by law. Off-balance sheet lending-related financial instruments and guarantees Allowance for lending- Contractual amount related commitments June 30, December 31, June 30, December 31, (in millions) 2009 2008 2009 2008 Lending-related Consumer: Credit card $ 607,949 $ 623,702 $ $ Home equity 70,642 95,743 Other 20,691 22,062 27 25 Total consumer $ 699,282 $ 741,507 $ 27 $ 25 Wholesale: Other unfunded commitments to extend credit(a)(b) 185,000 189,563 319 349 Asset purchase agreements 30,010 53,729 2 9 Standby letters of credit and other financial guarantees(a)(c)(d) 89,453 95,352 397 274 Unused advised lines of credit 35,137 36,300 Other letters of credit(a)(c) 4,391 4,927 1 2 Total wholesale 343,991 379,871 719 634 Total lending-related $ 1,043,273 $ 1,121,378 $ 746 $ 659 Other guarantees Securities lending guarantees(e) $ 153,940 $ 169,281 NA NA Residual value guarantees 670 670 NA NA Derivatives qualifying as guarantees(f) 85,715 83,835 NA NA |
Business Segments
Business Segments | |
6 Months Ended
Jun. 30, 2009 USD / shares | |
Business Segments [Abstract] | |
Business Segments | NOTE 25 BUSINESS SEGMENTS JPMorgan Chase is organized into six major reportable business segments the Investment Bank, Retail Financial Services, Card Services, Commercial Banking, Treasury Securities Services (TSS) and Asset Management (AM), as well as a Corporate/Private Equity segment. The segments are based on the products and services provided or the type of customer served, and they reflect the manner in which financial information is currently evaluated by management. Results of these lines of business are presented on a managed basis. For a definition of managed basis, see the footnotes to the table below. For a further discussion concerning JPMorgan Chases business segments, see Business Segment Results on pages 18-19 of this Form 10-Q, and pages 40-41 and Note 37 on pages 214-215 of JPMorgan Chases 2008 Annual Report. Segment results The following tables provide a summary of the Firms segment results for the three and six months ended June30, 2009 and 2008, on a managed basis. The impact of credit card securitization adjustments has been included in reconciling items so that the total Firm results are on a reported basis. Finally, total net revenue (noninterest revenue and net interest income) for each of the segments is presented on a tax-equivalent basis. Accordingly, revenue from tax-exempt securities and investments that receive tax credits are presented in the managed results on a basis comparable to taxable securities and investments. This approach allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to these items is recorded within income tax expense (benefit). The following tables summarize the business segment results and reconciliation to reported U.S. GAAP results. Segment results and reconciliation(a) Three months ended June 30, 2009 Investment Retail Financial Card Commercial (in millions, except ratios) Bank Services Services(d) Banking Noninterest revenue $ 4,856 $ 2,940 $ 557 $ 458 Net interest income 2,445 5,030 4,311 995 Total net revenue 7,301 7,970 4,868 1,453 Provision for credit losses 871 3,846 4,603 312 Credit reimbursement (to)/from TSS(b) Noninterest expense(c) 4,067 4,079 1,333 535 Income (loss)before income tax expense 2,363 45 (1,068 ) 606 Income tax expense (benefit) 892 30 (396 ) 238 Net income (loss) $ 1,471 $ 15 $ (672 ) $ 368 Average common equity $ 33,000 $ 25,000 $ 15,000 $ 8,000 Average assets 710,825 410,228 193,310 137,283 Return on average common equity 18 % % (18 )% 18 % Overhead ratio 56 51 27 37 Three months ended June 30, 2009 Treasury Asset Corporate/ Reconciling (in millions, except ratios) Securities Services Management Private Equity Items(d)(e) Total |