JPMorgan Chase & Co. (JPM) 10-Q 10 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	3 Months Ended Mar. 31, 2010	Apr. 30, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	J P MORGAN CHASE & CO
Entity Central Index Key	0000019617
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
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)			$133,193,936,622
Entity Common Stock, Shares Outstanding (actual number)		3,978,693,997

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010		3 Months Ended Mar. 31, 2009
Revenue
Investment banking fees	$1,461		$1,386
Principal transactions	4,548		2,001
Lending- and deposit-related fees	1,646		1,688
Asset management, administration and commissions	3,265		2,897
Securities gains	610	[1]	198	[1]
Mortgage fees and related income	658		1,601
Credit card income	1,361		1,837
Other income	412		50
Noninterest revenue	13,961		11,658
Interest income	16,845		17,926
Interest expense	3,135		4,559
Net interest income	13,710		13,367
Total net revenue	27,671		25,025
Provision for credit losses	7,010		8,596
Noninterest expense
Compensation expense	7,276		7,588
Occupancy expense	869		885
Technology, communications and equipment expense	1,137		1,146
Professional and outside services	1,575		1,515
Marketing	583		384
Other expense	4,441		1,375
Amortization of intangibles	243		275
Merger costs	0		205
Total noninterest expense	16,124		13,373
Income before income tax expense	4,537		3,056
Income tax expense	1,211		915
Net income	3,326		2,141
Net income applicable to common stockholders	$2,974		$1,519
Net income per common share data
Basic earnings per share	0.75		0.4
Diluted earnings per share	0.74		0.4
Weighted-average basic shares	3970.5		3755.7
Weighted-average diluted shares	3994.7		3758.7
Cash dividends declared per common share	0.05		0.05
[1]Securities gains for the three months ended March 31, 2010 and 2009, included credit losses of $100 million and $5 million, respectively, consisting of $94 million and $5 million, respectively, of total other-than-temporary impairment losses, net of $(6) million and zero, respectively, of other-than-temporary impairment losses recorded in/(reclassified from) other comprehensive income.

1_Consolidated Statements of In

Consolidated Statements of Income (Unaudited) (Parenthetical) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenue
Credit losses	$100	$5
Total other-than-temporary impairment losses	94	5
Other-than-temporary impairment losses recorded in/(reclassified from) other comprehensive income	($6)	$0

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010		12 Months Ended Dec. 31, 2009
Assets
Cash and due from banks	$31,422		$26,206
Deposits with banks	59,014		63,230
Federal funds sold and securities purchased under resale agreements (included $18,806 and $20,536 at fair value at March 31, 2010, and December 31, 2009, respectively)	230,123		195,404
Securities borrowed (included $8,676 and $7,032 at fair value at March 31, 2010, and December 31, 2009, respectively)	126,741		119,630
Trading assets	426,128	[1]	411,128	[1]
Securities (included $344,353 and $360,365 at fair value at March 31, 2010, and December 31, 2009, respectively, and assets pledged of $100,131 and $100,931 at March 31, 2010, and December 31, 2009, respectively)	344,376		360,390
Loans	713,799	[1]	633,458	[1]
Allowance for loan losses	(38,186)		(31,602)
Loans, net of allowance for loan losses	675,613		601,856
Accrued interest and accounts receivable (included zero and $5,012 at fair value at March 31, 2010, and December 31, 2009, respectively)	53,991		67,427
Premises and equipment	11,123		11,118
Goodwill	48,359		48,357
Mortgage servings rights	15,531		15,531
Other intangible assets	4,383		4,621
Other assets	108,992	[1]	107,091	[1]
Total assets	2,135,796	[1]	2,031,989	[1]
Liabilities
Deposits (included $4,808 and $4,455 at fair value at March 31, 2010, and December 31, 2009, respectively)	925,303		938,367
Federal funds purchased and securities loaned or sold under repurchase agreements (included $3,823 and $3,396 at fair value at March 31, 2010, and December 31, 2009, respectively)	295,171		261,413
Commercial paper	50,554		41,794
Other borrowed funds (included $6,158 and $5,637 at fair value at March 31, 2010, and December 31, 2009, respectively)	48,981		55,740
Trading liabilities	140,969		125,071
Accounts payable and other liabilities (included the allowance for lending-related commitments of $940 and $939, respectively, at March 31, 2010, and December 31, 2009, and $329 and $357 at fair value at March 31, 2010, and December 31, 2009, respectively)	154,185		162,696
Beneficial interests	93,055	[1]	15,225	[1]
Long-term debt (included $46,781 and $48,972 at fair value at March 31, 2010, and December 31, 2009, respectively)	262,857		266,318
Total liabilities	1,971,075	[1]	1,866,624	[1]
Commitments and contingencies (see Note 21 of this Form 10-Q)
Stockholders' equity
Preferred stock ($1 par value; authorized 200,000,000 shares at March 31, 2010, and December 31, 2009; issued 2,538,107 shares at March 31, 2010, and December 31, 2009)	8,152		8,152
Common stock ($1 par value; authorized 9,000,000,000 shares at March 31, 2010, and December 31, 2009; issued 4,104,933,895 shares at March 31, 2010, and December 31, 2009)	4,105		4,105
Capital surplus	96,450		97,982
Retained earnings	61,043		62,481
Accumulated other comprehensive income/(loss)	761		(91)
Shares held in RSU Trust, at cost (1,524,785 and 1,526,944 shares at March 31, 2010, and December 31, 2009, respectively)	(68)		(68)
Treasury stock, at cost (129,577,403 and 162,974,783 shares at March 31, 2010, and December 31, 2009, respectively)	(5,722)		(7,196)
Total stockholders' equity	164,721		165,365
Total liabilities and stockholders' equity	2,135,796		2,031,989
Variable interest entities, primary beneficiary
Assets
Trading assets	7,464		6,347
Loans	114,878		13,004
Other assets	6,348		5,043
Total assets	128,690		24,394
Liabilities
Beneficial interests	93,055		15,225
Other liabilities	2,671		2,197
Total liabilities	95,726		17,422
Limited program-wide credit enhancement	$2,400	[2]
[1]The Variable interest entities, primary beneficiary table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at March 31,2010, and December 31, 2009. The difference between total VIE assets and liabilities represents the Firm's interests in those entities, which were eliminated in consolidation.The assets of the consolidated VIEs are used to settle the liabilities of those entities. For further discussion, see Note 15 on pages 131-142 of this Form 10-Q.
[2] The Firm provides limited program-wide credit enhancement of $2.4 billion related to its Firm-administered multi-seller conduits.

2_Consolidated Balance Sheets (

Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)
In Millions, except Share data	Mar. 31, 2010	Dec. 31, 2009
Assets
Federal funds sold and securities purchased under resale agreements, at fair value	$18,806	$20,536
Securities borrowed, at fair value	8,676	7,032
Trading assets pledged	48,428	38,315
Securities, at fair value	344,353	360,365
Securities, assets pledged	100,131	100,931
Loans, at fair value	2,025	1,364
Accrued interest and accounts receivable, at fair value	0	5,012
Other assets, at fair value	18,427	19,165
Liabilities
Deposits, at fair value	4,808	4,455
Federal funds purchased and securities loaned or sold under repurchase agreements, at fair value	3,823	3,396
Other borrowed funds, at fair value	6,158	5,637
Allowance for lending-related commitments	940	939
Accounts payable and other liabilities, at fair value	329	357
Beneficial interests issued by consolidated variable interest entities, at fair value	2,591	1,410
Long-term debt, at fair value	$46,781	$48,972
Stockholders' equity
Preferred stock, par value (actual number)	1	1
Preferred stock, shares authorized (actual number)	200,000,000	200,000,000
Preferred stock, shares issued (actual number)	2,538,107	2,538,107
Common stock, par value (actual number)	1	1
Common stock, shares authorized (actual number)	9,000,000,000	9,000,000,000
Common stock, shares issued (actual number)	4,104,933,895	4,104,933,895
Shares held in RSU Trust, shares (actual number)	1,524,785	1,526,944
Treasury stock, shares (actual number)	129,577,403	162,974,783

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity and Comprehensive Income (Unaudited) (USD $)
In Millions	Preferred stock	Common stock	Capital surplus	Retained earnings	Accumulated other comprehensive income/(loss)	Stock held in RSU Trust	Treasury stock, at cost	Total
Beginning Balance at Dec. 31, 2008	$31,939	$3,942	$92,143	$54,013	($5,687)	($217)	($9,249)
Accretion of preferred stock discount on issuance to the U.S. Treasury	54
Shares issued and commitments to issue common stock for employee stock-based compensation awards and related tax effects			(674)
Net income				2,141				2,141
Dividend declared preferred stock				(425)
Dividend declared common stock ($0.05 per share in each period)				(242)
Other comprehensive income					1,197			1,197
Reissuance from RSU Trust						(131)
Reissuance from treasury stock							1,147
Share repurchases related to employee stock-based compensation awards							(19)
Comprehensive income								3,338
Ending Balance at Mar. 31, 2009	31,993	3,942	91,469	55,487	(4,490)	(86)	(8,121)	170,194
Beginning Balance at Dec. 31, 2009	8,152	4,105	97,982	62,481	(91)	(68)	(7,196)
Shares issued and commitments to issue common stock for employee stock-based compensation awards and related tax effects			(471)
Other			(1,061)
Cumulative effect of change in accounting principle				(4,391)	(129)
Net income				3,326				3,326
Dividend declared preferred stock				(162)
Dividend declared common stock ($0.05 per share in each period)				(211)
Other comprehensive income					981			981
Reissuance from treasury stock							1,474
Comprehensive income								4,307
Ending Balance at Mar. 31, 2010	$8,152	$4,105	$96,450	$61,043	$761	($68)	($5,722)	$164,721

3_Consolidated Statements of Ch

Consolidated Statements of Changes in Stockholders' Equity and Comprehensive Income (Unaudited) (Parenthetical) (Retained earnings, USD $)
	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Common stock, dividends declared per share	0.05	0.05

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Operating activities
Net income	$3,326	$2,141
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for credit losses	7,010	8,596
Depreciation and amortization	955	411
Amortization of intangibles	243	275
Deferred tax benefit	(40)	(1,206)
Investment securities gains	(610)	(198)
Stock-based compensation	941	788
Originations and purchases of loans held-for-sale	(6,503)	(5,669)
Proceeds from sales, securitizations and paydowns of loans held-for-sale	7,806	5,824
Net change in trading assets	(4,235)	90,281
Net change in securities borrowed	(7,099)	(3,935)
Net change in accrued interest and accounts receivable	16,645	8,720
Net change in other assets	(4,746)	3,671
Net change in trading liabilities	15,027	(32,739)
Net change in accounts payable and other liabilities	(8,237)	(21,097)
Other operating adjustments	(1,351)	(5,107)
Net cash provided by operating activities	19,132	50,756
Investing activities
Net change in deposits with banks	4,282	48,237
Net change in federal funds sold and securities purchased under resale agreements	(34,703)	45,652
Held-to-maturity securities:
Proceeds	2	3
Available-for-sale securities:
Proceeds from maturities	37,323	27,159
Proceeds from sales	20,945	24,245
Purchases	(57,647)	(177,418)
Proceeds from sales and securitizations of loans held-for-investment	1,428	4,660
Other changes in loans, net	13,997	25,780
Net cash used in business acquisitions or dispositions	(4)	(91)
Net maturities of asset-backed commercial paper guaranteed by the FRBB	0	5,211
All other investing activities, net	515	188
Net cash (used in)/provided by investing activities	(13,862)	3,626
Financing activities
Net change in deposits	(19,927)	(112,287)
Net change in federal funds purchased and securities loaned or sold under repurchase agreements	33,749	87,324
Net change in commercial paper and other borrowed funds	2,083	(25,019)
Net change in beneficial interests issued by consolidated variable interest entities	(11,657)	(872)
Proceeds from long-term debt and trust preferred capital debt securities	10,852	17,750
Payments of long-term debt and trust preferred capital debt securities	(14,110)	(18,684)
Excess tax benefits related to stock-based compensation	12	0
Dividends paid	(253)	(1,832)
All other financing activities, net	(464)	(689)
Net cash provided by/(used in) financing activities	285	(54,309)
Effect of exchange rate changes on cash and due from banks	(339)	(287)
Net increase (decrease) in cash and due from banks	5,216	(214)
Cash and due from banks at the beginning of the year	26,206	26,895
Cash and due from banks at the end of the period	31,422	26,681
Cash interest paid	2,850	5,530
Cash income taxes paid, net of refund received	$2,228	$718

4_Consolidated Statements of Ca

Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) (USD $)
In Billions	3 Months Ended Mar. 31, 2010
Statements of Cash Flows [Abstract]
Noncash assets related to the consolidation of VIEs	87.7
Noncash liabilities related to the consolidation of VIEs	92.2

Basis of presentation

Basis of presentation
	3 Months Ended Mar. 31, 2010
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 segment information, see Note 23 on pages 152-154 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, 2009, as filed with the U.S. Securities and Exchange Commission (the 2009 Annual Report). Certain amounts in prior periods have been reclassified to conform to the current presentation. Consolidation The Consolidated Financial Statements include the accounts of JPMorgan Chase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated. The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity (VIE). Voting Interest Entities Voting interest entities are entities that have sufficient equity and provide the equity investors voting rights that enable them to make significant decisions relating to the entitys operations. For these types of entities, the Firms determination of whether it has a controlling interest is primarily based on the amount of voting equity interests held. Entities in which the Firm has a controlling financial interest, through ownership of the majority of the entities voting equity interests or through other contractual rights that give the Firm control, are consolidated by the Firm. Investments in companies that are considered to be voting interest entities in which the Firm has significant influence over operating and financing decisions (but does not own a majority of the voting equity interests) are accounted for in accordance with the equity method of accounting (which requires the Firm to recognize its proportionate sh

Business changes and developmen

Business changes and developments
	3 Months Ended Mar. 31, 2010
Business changes and developments [Abstract]
BUSINESS CHANGES AND DEVELOPMENTS	NOTE 2 BUSINESS CHANGES AND DEVELOPMENTS Purchase of remaining interest in J.P. Morgan Cazenove On January4, 2010, JPMorgan Chase purchased the remaining interest in J.P. Morgan Cazenove, an investment banking business partnership formed in 2005. RBS Sempra transaction On February16, 2010, JPMorgan Chase announced that it will acquire RBS Sempra Commodities global oil, global metals and European power and gas businesses. The transaction is expected to close mid 2010, pending regulatory approvals. Subsequent Events U.K. Bonus Payroll Tax The U.K. Bonus Payroll Tax on certain performance bonuses awarded to employees operating in the U.K. was enacted into law on April8, 2010. The impact of the tax will be reflected in compensation expense in the second quarter of 2010. The impact of this legislation is in the process of being quantified, and is expected to be material.

Fair value measurement

Fair value measurement
	3 Months Ended Mar. 31, 2010
Fair value measurement [Abstract]
FAIR VALUE MEASUREMENT	NOTE 3 FAIR VALUE MEASUREMENT For a further discussion of the Firms valuation methodologies for assets, liabilities and lending-related commitments measured at fair value and the fair value hierarchy, see Note 3 on pages 148-165 of JPMorgan Chases 2009 Annual Report. During the first three months of 2010, no changes were made to the Firms valuation models that had, or are expected to have, a material impact on the Firms Consolidated Balance Sheets or results of operations. The following table presents the assets and liabilities measured at fair value as of March31, 2010, and December31, 2009, by major product category and by the fair value hierarchy. Assets and liabilities measured at fair value on a recurring basis Fair value hierarchy Netting Total March 31, 2010 (in millions) Level 1(j) Level 2(j) Level 3 adjustments fair value Federal funds sold and securities purchased under resale agreements $ $ 18,806 $ $ $ 18,806 Securities borrowed 8,676 8,676 Trading assets: Debt instruments: Mortgage-backed securities: U.S. government agencies(a) 23,758 7,781 215 31,754 Residential nonagency(b) 2,534 841 3,375 Commercial nonagency(b) 764 1,673 2,437 Total mortgage-backed securities 23,758 11,079 2,729 37,566 U.S. Treasury and government agencies(a) 20,735 9,897 30,632 Obligations of U.S. states and municipalities 1 5,972 1,975 7,948 Certificates of deposit, bankers acceptances and commercial paper 2,914 2,914 NonU.S. government debt securities 35,320 39,354 713 75,387 Corporate debt securities 48,417 4,947 53,364 Loans(c) 13,408 15,776 29,184 Asset-backed securities 1,375 8,078 9,453 Total debt instruments 79,814 132,416 34,218 246,448 Equity securities 80,620 3,488 1,716 85,824 Physical commodities(d) 10,196 295 10,491 Other 9 3,515 425 3,949 Total debt and equity instruments(e) 170,639 139,714 36,359 346,712 Derivative receivables: Interest rate 838 1,131,415 5,178 (1,098,687 ) 38,744 Credit(f) 119,853 28,070 (137,835 ) 10,088 Foreign exchange 1,052 125,776 2,519 (110,810 ) 18,537 Equity 22 44,790 6,728 (46,002 ) 5,538 Commodity 256 34,980 1,252 (29,979 ) 6,509 Total derivative receivables(g) 2,168 1,456,814 43,747 (1,423,313 ) 79,416 Total trading assets 172,807

Fair value option

Fair value option
	3 Months Ended Mar. 31, 2010
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 4 on pages 165-167 of JPMorgan Chases 2009 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 months ended March31, 2010 and 2009, 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 March 31, 2010 2009 Total changes Total changes Principal Other in fair value Principal Other in fair value (in millions) transactions income recorded transactions income recorded Federal funds sold and securities purchased under resale agreements $ 19 $ $ 19 $ (226 ) $ $ (226 ) Securities borrowed 12 12 (7 ) (7 ) Trading assets: Debt and equity instruments, excluding loans 156 1 (c) 157 60 (3 )(c) 57 Loans reported as trading assets: Changes in instrument-specific credit risk 409 (6) (c) 403 (480 ) (50 )(c) (530 ) Other changes in fair value (384 ) 755 (c) 371 (265 ) 937 (c) 672 Loans: Changes in instrument-specific credit risk 47 47 (453 ) (453 ) Other changes in fair value (27 ) (27 ) (107 ) (107 ) Other assets (53) (d) (53 ) (401 )(d) (401 ) Deposits(a) (189 ) (189 ) (165 ) (165 ) Federal funds purchased and securities loaned or sold under repurchase agreements (9 ) (9 ) 33 33 Other borrowed funds(a) 74 74 34 34 Trading liabilities (3 ) (3 ) (2 ) (2 ) Beneficial interests issued by consolidated VIEs 46 46 15 15 Other liabilities 23 23 (1 ) (1 ) Long-term debt: Changes in instrument-specific credit risk(a) 51 51 644 644 Other changes in fair value(b) 226 226 1,207 1,207 (a) Total changes in instrument-specific credit risk related to structured notes were $108 million and $638million for the three months ended March31, 2010 and 2009, respectively. Those totals include adjustments for structured notes classified within deposits and other borrowed fund

Derivative instruments

Derivative instruments
	3 Months Ended Mar. 31, 2010
Derivative instruments [Abstract]
DERIVATIVE INSTRUMENTS	NOTE 5 DERIVATIVE INSTRUMENTS For a further discussion of the Firms use and accounting policies regarding derivative instruments, see Note 5 on pages 167-175 of JPMorgan Chases 2009 Annual Report. Notional amount of derivative contracts The following table summarizes the notional amount of derivative contracts outstanding as of March 31, 2010, and December31, 2009. Notional amounts(b) (in billions) March 31, 2010 December 31, 2009 Interest rate contracts Swaps $ 43,902 $ 47,663 Futures and forwards 9,394 6,986 Written options 4,523 4,553 Purchased options 4,442 4,584 Total interest rate contracts 62,261 63,786 Credit derivatives(a) 5,637 5,994 Foreign exchange contracts Cross-currency swaps 2,220 2,217 Spot, futures and forwards 4,204 3,578 Written options 648 685 Purchased options 649 699 Total foreign exchange contracts 7,721 7,179 Equity contracts Swaps 85 81 Futures and forwards 42 45 Written options 509 502 Purchased options 474 449 Total equity contracts 1,110 1,077 Commodity contracts Swaps 182 178 Spot, futures and forwards 112 113 Written options 192 201 Purchased options 190 205 Total commodity contracts 676 697 Total derivative notional amounts $ 77,405 $ 78,733 (a) Primarily consists of credit default swaps. For more information on volumes and types of credit derivative contracts, see the Credit derivatives discussion on pages 115-116 of this Note. (b) Represents the sum of gross long and gross short third-party notional derivative contracts. While the notional amounts disclosed above give an indication of the volume of the Firms derivative activity, the notional amounts significantly exceed, in the Firms view, the possible losses that could arise from such transactions. For most derivative transactions, the notional amount is not exchanged; it is used simply as a reference to calculate payments. Impact of derivatives on the Consolidated Balance Sheets The following table summarizes information on derivative fair values that are reflected on the Firms Consolidated Balance Sheets as of March31, 2010, and December31, 2009, by accounting designation (e.g., whether the derivatives were designated as hedges or not) and contract type. Free-standing derivatives(a) Derivative receivables Derivative payables Total Not Total March 31, 2010 Not designated Designated derivative designated Designated derivative (in millions) as hedges as hedges receivables as hedges as hedges payables Trading assets and liabilities Interest rate $ 1,130,188 $ 7,243 $ 1,137,431 $ 1,102,519 $ 359 $ 1,102,878 Credit 147,923 147,923

Other Noninterest Revenue

Other Noninterest Revenue
	3 Months Ended Mar. 31, 2010
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 on pages 175-176 of JPMorgan Chases 2009 Annual Report. The following table presents the components of investment banking fees. Three months ended March 31, (in millions) 2010 2009 Underwriting: Equity $ 413 $ 308 Debt 751 603 Total underwriting 1,164 911 Advisory(a) 297 475 Total investment banking fees $ 1,461 $ 1,386 (a) Effective January1, 2010, the Firm adopted new consolidation guidance related to VIEs. Upon the adoption of the guidance, the Firm consolidated its Firm-administered multi-seller conduits. The consolidation of the conduits did not significantly change the Firms net income as a whole; however, it did affect the classification of items on the Firms Consolidated Statements of Income; as a result, certain advisory fees were eliminated, which were offset by an increase in lending- and deposit-related fees. The following table presents principal transactions revenue. Three months ended March 31, (in millions) 2010 2009 Trading revenue $ 4,386 $ 2,489 Private equity gains/(losses)(a) 162 (488 ) Principal transactions $ 4,548 $ 2,001 (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 March 31, (in millions) 2010 2009 Asset management: Investment management fees $ 1,327 $ 1,083 All other asset management fees 109 81 Total asset management fees 1,436 1,164 Total administration fees(a) 491 455 Commission and other fees: Brokerage commissions 703 687 All other commissions and fees 635 591 Total commissions and fees 1,338 1,278 Total asset management, administration and commissions $ 3,265 $ 2,897 (a) Includes fees for custody, securities lending, funds services and securities clearance.

Interest income and Interest ex

Interest income and Interest expense
	3 Months Ended Mar. 31, 2010
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 March 31, (in millions) 2010 2009 Interest income(a) Loans $ 10,557 $ 10,508 Securities 2,904 2,860 Trading assets 2,760 3,214 Federal funds sold, securities purchased under resale agreements 407 650 Securities borrowed 29 86 Deposits with banks 95 443 Other assets(b) 93 165 Total interest income 16,845 (d) 17,926 Interest expense(a) Interest-bearing deposits 844 1,686 Short-term and other liabilities(c) 701 1,091 Long-term debt 1,260 1,744 Beneficial interests issued by consolidated VIEs 330 38 Total interest expense 3,135 (d) 4,559 Net interest income $ 13,710 $ 13,367 Provision for credit losses 7,010 8,596 Net interest income after provision for credit losses $ 6,700 $ 4,771 (a) Interest income and 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 U.S. GAAP absent the fair value option 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. (d) Effective January1, 2010, the Firm adopted new consolidation guidance related to VIEs. Upon the adoption of the new 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. The consolidation of these VIEs did not significantly change the Firms net income as a whole; however, it does affect the classification of items on the Firms Consolidated Statements of Income; as a result of the adoption of the new guidance, certain noninterest revenue was eliminated, offset by the recognition of interest income, interest expense, and provision for credit losses.

Pension and other postretiremen

Pension and other postretirement employee benefit plans
	3 Months Ended Mar. 31, 2010
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 8 on pages 176-183 of JPMorgan Chases 2009 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 March 31, (in millions) 2010 2009 2010 2009 2010 2009 Components of net periodic benefit cost Benefits earned during the period $ 58 $ 77 $ 7 $ 7 $ $ 1 Interest cost on benefit obligations 117 128 (14 ) 26 15 18 Expected return on plan assets (186 ) (146 ) 13 (24 ) (24 ) (24 ) Amortization: Net loss 56 76 14 10 Prior service cost (credit) (11 ) 1 (3 ) (4 ) Net periodic benefit cost 34 136 20 19 (12 ) (9 ) Other defined benefit pension plans(a) 4 3 4 4 NA NA Total defined benefit plans 38 139 24 23 (12 ) (9 ) Total defined contribution plans 63 78 65 59 NA NA Total pension and OPEB cost included in compensation expense $ 101 $ 217 $ 89 $ 82 $ (12 ) $ (9 ) (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 for the material non-U.S. defined benefit pension plans were $11.6billion and $2.4billion, respectively, as of March31, 2010, and $11.5billion and $2.4billion, respectively, as of December31, 2009. See Note 20 on page 147 of this Form 10-Q for further information on unrecognized amounts (i.e., net loss and prior service costs/(credit)) reflected in AOCI for the three months ended March31, 2010 and 2009. The amount of 2010 potential contributions for the U.S. qualified defined benefit pension plans, if any, are not reasonably estimable at this time. The 2010 potential contributions for the Firms U.S. non-qualified defined benefit pension plans are estimated to be $42million and for the non-U.S. defined benefit pension and OPEB plans are estimated to be $171million and $2million, respectively.

Employee stock-based incentives

Employee stock-based incentives
	3 Months Ended Mar. 31, 2010
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 incentives, see Note 9 on pages 184-186 of JPMorgan Chases 2009 Annual Report. The Firm recognized noncash compensation expense related to its various employee stock-based incentive plans of $941million and $788million for the three months ended March31, 2010 and 2009, respectively, in its Consolidated Statements of Income. These amounts included expense of $688million and $648million, respectively, related to the cost of prior grants of restricted stock units (RSUs) and stock appreciation rights (SARs) that are amortized over their applicable vesting periods, and expense of $253million and $140million, respectively, related to the accrual of estimated costs of RSUs and SARs to be granted in future periods to full-career eligible employees. In the first quarter of 2010, the Firm granted 71million RSUs, with a weighted average grant date fair value of $43.12 per RSU, in connection with its annual incentive grant.

Noninterest expense

Noninterest expense
	3 Months Ended Mar. 31, 2010
Noninterest expense [Abstract]
NONINTEREST EXPENSE	NOTE 10 NONINTEREST EXPENSE The following table presents the components of noninterest expense. Three months ended March 31, (in millions) 2010 2009 Compensation expense $ 7,276 $ 7,588 Noncompensation expense: Occupancy expense 869 885 Technology, communications and equipment expense 1,137 1,146 Professional and outside services 1,575 1,515 Marketing 583 384 Other expense(a)(b) 4,441 1,375 Amortization of intangibles 243 275 Total noncompensation expense 8,848 5,580 Merger costs 205 (c) Total noninterest expense $ 16,124 $ 13,373 (a) The first quarter of 2010 includes $2.9billion of litigation expense compared with a net benefit of $270 million in the first quarter of 2009. (b) Includes foreclosed property expense of $303million and $325million for the three months ended March31, 2010 and 2009, respectively. For additional information regarding foreclosed property, see Note 13 on page 196 of JPMorgan Chases 2009 Annual Report. (c) Includes $142million for compensation expense, $5million for occupancy expense and $58 million for technology and communications and other expense. With the exception of occupancy- and technology-related write-offs, all of the costs required the expenditure of cash.

Securities

Securities
	3 Months Ended Mar. 31, 2010
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 11 on pages 187-191 of JPMorgan Chases 2009 Annual Report. Trading securities are discussed in Note 3 on pages 96-107 of this Form 10-Q. Securities gains and losses The following table presents realized gains and losses and credit losses that were recognized in income from AFS securities. Three months ended March 31, (in millions) 2010 2009 Realized gains $ 752 $ 410 Realized losses (42 ) (207 ) Net realized gains(a) 710 203 Credit losses included in securities gains(b) (100 ) (5 ) Net securities gains $ 610 $ 198 (a) Proceeds from securities sold were within approximately 3% of amortized cost. (b) Includes other-than-temporary impairment losses recognized in income on certain prime mortgage-backed securities and obligations of U.S. states and municipalities for the three months ended March31, 2010, and on certain subprime mortgage-backed securities for the three months ended March31, 2009, respectively. The amortized costs and estimated fair values of AFS and HTM securities were as follows for the dates indicated. March 31, 2010 December 31, 2009 Gross Gross Gross Gross Amortized unrealized unrealized Amortized unrealized unrealized Fair (in millions) cost gains losses Fair value cost gains losses value Available-for-sale debt securities Mortgage-backed securities: U.S. government agencies(a) $ 157,761 $ 2,669 $ 300 $ 160,130 $ 166,094 $ 2,412 $ 608 $ 167,898 Residential: Prime and Alt-A 4,406 100 665 (d) 3,841 5,234 96 807 (d) 4,523 Subprime 17 17 Non-U.S. 17,293 381 47 17,627 10,003 320 65 10,258 Commercial 4,989 355 6 5,338 4,521 132 63 4,590 Total mortgage-backed securities $ 184,449 $ 3,505 $ 1,018 $ 186,936 $ 185,869 $ 2,960 $ 1,543 $ 187,286 U.S. Treasury and government agencies(a) 24,762 111 141 24,732 30,044 88 135 29,997 Obligations of U.S. states and municipalities 7,525 301 30 7,796 6,270 292 25 6,537 Certificates of deposit 4,202 5 4,207 2,649 1 2,650 Non-U.S. government debt securities 20,997 219 56 21,160 24,320 234

Securities financing activities

Securities financing activities
	3 Months Ended Mar. 31, 2010
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 12 on page 192 of JPMorgan Chases 2009 Annual Report. For further information regarding securities borrowed and securities lending agreements for which the fair value option has been elected, see Note 4 on pages 108109 of this Form 10-Q. The following table details the Firms repurchase agreements, resale agreements, securities borrowed transactions and securities loaned transactions, all of which are accounted for as collateralized financings during the periods presented. (in millions) March 31, 2010 December 31, 2009 Securities purchased under resale agreements(a) $ 229,955 $ 195,328 Securities borrowed(b) 126,741 119,630 Securities sold under repurchase agreements(c) $ 267,321 $ 245,692 Securities loaned 10,344 7,835 (a) Includes resale agreements of $18.8billion and $20.5billion accounted for at fair value at March31, 2010, and December31, 2009, respectively. (b) Includes securities borrowed of $8.7billion and $7.0billion accounted for at fair value at March31, 2010, and December31, 2009, respectively. (c) Includes repurchase agreements of $3.8billion and $3.4billion accounted for at fair value at March31, 2010, and December31, 2009, respectively. The amounts reported in the table above have been reduced by $130.8billion and $121.2billion at March31, 2010, and December31, 2009, respectively, as a result of the agreements having met the specified conditions for net presentation under applicable accounting guidance. 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 March31, 2010, the Firm received securities as collateral that could be repledged, delivered or otherwise used with a fair value of approximately $663.0billion. This collateral was generally obtained under resale agreements, securities borrowing agreements and customer margin loans. Of these securities, approximately $419.6billion were repledged, delivered or otherwise used, generally as collateral under repurchase agreements, securities lending agreements or to cover short sales.

Loans

Loans
	3 Months Ended Mar. 31, 2010
Loans [Abstract]
LOANS	NOTE 13 LOANS The accounting for a loan may differ 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, unamortized discounts and premiums, 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 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 the accounting policies relating to loans, see Note 13 on pages 192196 of JPMorgan Chases 2009 Annual Report. See Note 4 on pages 108-109 of this Form 10-Q for further information on the Firms elections of fair value accounting under the fair value option. See Note 3 on pages 96-107 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) March 31, 2010 December 31, 2009 U.S. wholesale loans: Commercial and industrial $ 45,974 $ 49,103 Real estate 53,000 54,968 Financial institutions 13,810 13,372 Government agencies 5,641 5,634 Other 31,145 23,383 Loans held-for-sale and at fair value 2,286 2,625 Total U.S. wholesale loans 151,856 149,085 Non-U.S. wholesale loans: Commercial and industrial 17,085 19,138 Real estate 2,022 2,227 Financial institutions 19,525 11,755 Government agencies 1,296 1,707 Other 20,713 18,790 Loans held-for-sale and at fair value 1,793 1,473 Total non-U.S. wholesale loans 62,434 55,090 Total wholesale loans:(a) Commercial and industrial 63,059 68,241 Real estate(b) 55,022 57,195 Financial institutions 33,335 25,127 Government agencies 6,937 7,341 Other 51,858 42,173 Loans held-for-sale and at fair value(c) 4,079 4,098 Total wholesale loans 214,290 204,175 Consumer loans:(d) Home equity senior lien(e) 26,477 27,376 Home equity junior lien(f) 71,165 74,049 Prime mortgage(g) 68,210 66,892 Subprime mortgage(g) 13,219

Allowance for credit losses

Allowance for credit losses
	3 Months Ended Mar. 31, 2010
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 14 on pages 196-198 of JPMorgan Chases 2009 Annual Report. The table below summarizes the changes in the allowance for loan losses. Three months ended March 31, (in millions) 2010 2009 Allowance for loan losses at January 1 $ 31,602 $ 23,164 Cumulative effect of change in accounting principles(a) 7,494 Gross charge-offs(a) 8,451 4,639 Gross (recoveries)(a) (541 ) (243 ) Net charge-offs(a) 7,910 4,396 Provision for loan losses(a) 6,991 8,617 Other 9 (4 ) Allowance for loan losses at March 31 $ 38,186 $ 27,381 Components: Asset-specific(b)(c) $ 2,567 $ 1,759 Formula-based(a)(d) 32,808 25,622 Purchased credit-impaired 2,811 Total allowance for loan losses $ 38,186 $ 27,381 (a) Effective January1, 2010, the Firm adopted new consolidation guidance related to VIEs. Upon adoption of the new 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, $7.4billion, $14 million and $127million of allowance for loan losses were recorded on-balance sheet associated with the Firm-sponsored credit card securitization trusts, Firm-administered multi-seller conduits, and certain other consumer loan securitization entities, primarily mortgage-related, respectively. For further discussion, see Note 15 on pages 131-142 of this Form10-Q. (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) The asset-specific consumer allowance for loan losses includes $754million and $380million related to residential real estate loans restructured in troubled debt restructurings at March 31, 2010 and 2009, respectively. Prior period amounts have been reclassified from formula-based to conform with the current period presentation. (d) Includes all of the Firms allowance for loan losses on credit card loans, including those for which the Firm has modified the terms of the loans for borrowers who are experiencing financial difficulty. The table below summarizes the changes in the allowance for lending-related commitments. Three months ended March 31, (in millions) 2010 2009 Allowance for lending-related commitments at January 1 $ 939 $ 659 Cumulative effect of change in accounting principles(a) (18 ) Provision for lending-related commitments(a) 19 (21 ) Allowance for lending-related commitments at March 31 $ 940 $ 638 Components: Asset-specific $ 296 $ 65 Formula-based 644

Variable interest entities

Variable interest entities
	3 Months Ended Mar. 31, 2010
Variable interest entities [Abstract]
VARIABLE INTEREST ENTITIES	NOTE 15 VARIABLE INTEREST ENTITIES For a further description of JPMorgan Chases accounting policies regarding consolidation of variable interest entities (VIEs), see Note 1 on pages 94-95 of this Form 10-Q. For a more detailed discussion of the Firms principal involvement with VIEs, see Note 16 on page 206 of JPMorgan Chases 2009 Annual Report. The following summarizes the most significant type of Firm-sponsored VIEs by business segment: Line of Form 10-Q page Business Transaction Type Activity reference Card Services Credit Card Securitization Trusts Securitization of both originated and purchased credit card receivables 132133 RFS Mortgage and Other Securitization Trusts Securitization of originated residential mortgages, automobile and student loans 133134 IB Mortgage and Other Securitization Trust Securitization of both originated and purchased residential mortgages, automobile and student loans 134135 Multi-seller conduits Investor Intermediation Activities: Assist clients in accessing the financial markets in a cost-efficient manner and structure transactions to meet investor needs 136 Municipal bond vehicles 136137 Credit-linked note vehicles 137 Asset swap vehicles 138 The Firm also invests in and provides financing and other services to VIEs sponsored by third parties as described on page 138 of this Note. New Consolidation Accounting Guidance for VIEs On January1, 2010, the Firm implemented new consolidation accounting guidance related to VIEs. The following table summarizes the incremental impact at adoption: Stockholders (in millions) GAAP Assets GAAP Liabilities Equity Tier 1 Capital As of December31, 2009 $ 2,031,989 $ 1,866,624 $ 165,365 11.10 % Impact of new accounting guidance for consolidation of VIEs Credit Card(a) 60,901 65,353 (4,452 ) (0.30 )% Multi-Seller Conduits(b) 17,724 17,744 (20 ) Mortgage Other(c)(d) 9,059 9,107 (48 ) (0.04 )% Total impact of new guidance 87,684 92,204 (4,520 ) (0.34 )%(e) Beginning balance- January1, 2010 $ 2,119,673 $ 1,958,828 $ 160,845 10.76 % (a) The assets and liabilities of the Firm-sponsored credit card securitization trusts that were consolidated were initially measured at their carrying values, primarily amortized cost, as this method is consistent with the approach that Card Services utilizes to manage its other assets. These assets are primarily recorded in Loans on the Firms Consolidated Balance Sheet. In addition, Card Services established an allowance for loan losses of $7.4billion (pretax) which was reported as a transition adjustment in stockholders equity. The impact to stockholders equity also inc

Goodwill and other intangible a

Goodwill and other intangible assets
	3 Months Ended Mar. 31, 2010
Goodwill and other intangible assets [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	NOTE 16 GOODWILL AND OTHER INTANGIBLE ASSETS For a discussion of accounting policies related to goodwill and other intangible assets, see Note 17 on pages 214217 of JPMorgan Chases 2009 Annual Report. Goodwill and other intangible assets consist of the following. (in millions) March 31, 2010 December 31, 2009 Goodwill $ 48,359 $ 48,357 Mortgage servicing rights 15,531 15,531 Other intangible assets: Purchased credit card relationships $ 1,153 $ 1,246 Other credit cardrelated intangibles 673 691 Core deposit intangibles 1,124 1,207 Other intangibles 1,433 1,477 Total other intangible assets $ 4,383 $ 4,621 Goodwill The following table presents goodwill attributed to the business segments. (in millions) March 31, 2010 December 31, 2009 Investment Bank $ 4,965 $ 4,959 Retail Financial Services 16,818 16,831 Card Services 14,161 14,134 Commercial Banking 2,867 2,868 Treasury Securities Services 1,667 1,667 Asset Management 7,504 7,521 Corporate/Private Equity 377 377 Total goodwill $ 48,359 $ 48,357 The following table presents changes in the carrying amount of goodwill. Three months ended (in millions) 2010 2009 Balance at beginning of period(a) $ 48,357 $ 48,027 Changes during the three months ended from: Business combinations 9 210 Dispositions (19 ) Other(b) 12 (36 ) Balance at March31,(a) $ 48,359 $ 48,201 (a) Reflects gross goodwill balances as the Firm has not recognized any impairment losses to date. (b) Includes foreign currency translation adjustments and other tax-related adjustments. The $2million increase in goodwill from December31, 2009, was largely due to foreign currency translation adjustments related to the Firms Canadian credit card operations, offset by the divestiture of certain non-strategic businesses, as well as tax-related purchase accounting adjustments associated with the Bank One merger. Goodwill was not impaired at March31, 2010, or December31, 2009, nor was any goodwill written off due to impairment during either of the three months ended March31, 2010 or 2009. During the first quarter, in addition to reviewing the current conditions and prior projections for all of its reporting units, the Firm updated the discounted cash flow valuations of its consumer lending businesses in RFS and Card Services, as these businesses continue to have elevated risk for goodwill impairment due to their exposure to U.S. consumer credit risk. As a result of this review, the Firm concluded that goodwill for these businesses and the Firms other reporting units was not impaired at March31, 2010. Mortgage servicing rights For a further description of the MSR asset, interest rate risk management, and the valuation methodology of MSRs, see Notes 3 and 17 on pages 151-152 and 214-217, respectively, of JPMorgan C

Deposits

Deposits
	3 Months Ended Mar. 31, 2010
Deposits [Abstract]
DEPOSITS	NOTE 17 DEPOSITS For further discussion of deposits, see Note 19 on page 218 in JPMorgan Chases 2009 Annual Report. At March31, 2010, and December31, 2009, noninterest-bearing and interest-bearing deposits were as follows. (in millions) March 31, 2010 December 31, 2009 U.S. offices: Noninterest-bearing $ 210,982 $ 204,003 Interest-bearing Demand(a) 16,164 15,964 Savings(b) 311,887 297,949 Time (included $2,162 and $1,463 at fair value at March31, 2010, and December31, 2009, respectively) 108,863 125,191 Non-U.S. offices: Noninterest-bearing 10,062 8,082 Interest-bearing Demand 184,892 186,885 Savings 633 661 Time (included $2,646 and $2,992 at fair value at March31, 2010, and December31, 2009, respectively) 81,820 99,632 Total $ 925,303 $ 938,367 (a) Represents Negotiable Order of Withdrawal (NOW) accounts. (b) Includes Money Market Deposit Accounts (MMDAs).

Other borrowed funds

Other borrowed funds
	3 Months Ended Mar. 31, 2010
Other borrowed funds [Abstract]
OTHER BORROWED FUNDS	NOTE 18 OTHER BORROWED FUNDS The following table details the components of other borrowed funds. (in millions) March 31, 2010 December 31, 2009 Advances from Federal Home Loan Banks(a) $ 19,828 $ 27,847 Other 29,153 27,893 Total other borrowed funds(b) $ 48,981 $ 55,740 (a) Maturities of advances from the FHLBs are $16.6billion, and $2.2billion in each of the 12-month periods ending March31, 2011 and 2013, respectively, and $927million maturing after March31, 2015. Maturities for the 12-month periods ending March31, 2012, 2014 and 2015 were not material. (b) Includes other borrowed funds of $6.2billion and $5.6billion accounted for at fair value at March31, 2010, and December31, 2009, respectively.

Earnings per share

Earnings per share
	3 Months Ended Mar. 31, 2010
Earnings per share [Abstract]
EARNINGS PER SHARE	NOTE 19 EARNINGS PER SHARE For a discussion of the computation of basic and diluted earnings per share (EPS), see Note 25 on page 224 of JPMorgan Chases 2009 Annual Report. The following table presents the calculation of basic and diluted EPS for the three months ended March31, 2010 and 2009. Three months ended March 31, (in millions, except per share amounts) 2010 2009 Basic earnings per share Net income $ 3,326 $ 2,141 Less: Preferred stock dividends 162 529 Net income applicable to common equity 3,164 1,612 Less: Dividends and undistributed earnings allocated to participating securities 190 93 Net income applicable to common stockholders $ 2,974 $ 1,519 Total weighted-average basic shares outstanding 3,970.5 3,755.7 Net income per share $ 0.75 $ 0.40 Three months ended March 31, (in millions, except per share amounts) 2010 2009 Diluted earnings per share Net income applicable to common stockholders $ 2,974 $ 1,519 Total weighted-average basic shares outstanding 3,970.5 3,755.7 Add: Employee stock options and SARs(a) 24.2 3.0 Total weighted-average diluted shares outstanding(b) 3,994.7 3,758.7 Net income per share $ 0.74 $ 0.40 (a) Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and warrants originally issued under the U.S. Treasurys Capital Purchase Program to purchase shares of the Firms common stock totaling 239million and 363million shares for the three months ended March31, 2010 and 2009, respectively. (b) Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.

Accumulated other comprehensive

Accumulated other comprehensive income (loss)
	3 Months Ended Mar. 31, 2010
Accumulated other comprehensive income/(loss) [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)	NOTE 20 ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) Accumulated other comprehensive income/(loss) includes the after-tax change in unrealized gains and losses on AFS securities, foreign currency translation adjustments (including the impact of related derivatives), cash flow hedging activities and net loss and prior service cost/(credit) related to the Firms defined benefit pension and OPEB plans. Net loss and prior service costs/(credit) Accumulated Three months ended Unrealized Translation of defined benefit other March 31, 2010 gains/(losses) on adjustments, pension and comprehensive (in millions) AFS securities(b) net of hedges Cash flow hedges OPEB plans income/(loss) Balance at January1, 2010 $ 2,032 (c) $ (16 ) $ 181 $ (2,288 ) $ (91 ) Cumulative effect of changes in accounting principles(a) (129 ) (129 ) Net change 796 (d) 31 (e) 85 (f) 69 (g) 981 Balance at March31, 2010 $ 2,699 (c) $ 15 $ 266 $ (2,219 ) $ 761 Net loss and prior service costs/(credit) Accumulated Three months ended Unrealized Translation of defined benefit other March 31, 2009 gains/(losses) on adjustments, pension and comprehensive (in millions) AFS securities(b) net of hedges Cash flow hedges OPEB plans income/(loss) Balance at January1, 2009 $ (2,101 ) $ (598 ) $ (202 ) $ (2,786 ) $ (5,687 ) Net change 1,162 (d) (116 )(e) 151 (f) (g) 1,197 Balance at March31, 2009 $ (939 ) $ (714 ) $ (51 ) $ (2,786 ) $ (4,490 ) (a) Reflects the effect of adoption of new consolidation guidance related to VIEs. The decrease in accumulated other comprehensive income is a result of the reversal of the fair value adjustments taken on retained AFS securities that were eliminated in consolidation. For further discussion, see Note 15 on pages 131-142 of this Form 10-Q. (b) 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. (c) Includes after-tax unrealized losses of $(193) million and $(226) million not related to credit on debt securities for which credit losses have been recognized in income at March31, 2010, and December31, 2009, respectively. (d) The net change for the quarter ended March31, 2010, was due primarily to the narrowing of spreads on commercial and nonagency residential mortgage-backed securities as well as on collateralized loan obligations; also reflects increased market value on pass through agency residential mortgage-backed securities. The net change for the quarter ended March31, 2009, was due primarily to the narrowing of spreads on U.S. government agency mortgage-backed securities.

Commitments and contingencies

Commitments and contingencies
	3 Months Ended Mar. 31, 2010
Commitments and contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 21 COMMITMENTS AND CONTINGENCIES For a discussion of the Firms commitments and contingencies, see Note 30 on page 230 of JPMorgan Chases 2009 Annual Report. Litigation reserve The Firm maintains litigation reserves for certain of its outstanding litigation. At March31, 2010, the Firm and its subsidiaries were named as a defendant or were otherwise involved in several thousand legal proceedings, investigations and litigations in various jurisdictions around the world. The Firms material legal proceedings are described in Item1: Legal Proceedings on pages 163 - 170 of this Form 10-Q, to which reference is hereby made. The Firm has established reserves for several hundred of its cases. The Firm accrues for a litigation-related liability when it is probable that such liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its litigations, proceedings and investigations each quarter to assess its litigation reserves, and makes adjustments in such reserves, upwards or downwards as appropriate, based on managements best judgment after consultation with counsel. In the first quarter of 2010, the Firm added approximately $2.9billion to its litigation reserves, primarily related to mortgage-related litigation, including mortgage-related lawsuits arising from actions taken by the Firm and certain of its heritage firms. There is no assurance that the Firms litigation reserves will not need to be adjusted in the future. The Firms legal proceedings range from cases involving a single plaintiff to class action lawsuits with classes involving thousands of plaintiffs. These cases involve each of the various lines of business of the Firm and a wide variety of claims (including common law tort and contract claims and statutory antitrust, securities and consumer protection claims), some of which present novel factual claims or legal theories. While some cases pending against the Firm specify the damages claimed by the plaintiff, many seek an indeterminate amount of damages or are at very early stages. The Firm does not believe a meaningful aggregate range of reasonably possible losses (as defined by the relevant accounting literature) can be determined for asserted and probable unasserted claims as of March31, 2010. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding litigations, and it intends to defend itself vigorously in all its cases. Based upon its current knowledge, after consultation with counsel and after taking into consideration its current litigation reserves, the Firm believes that the legal actions, proceedings and investigations currently pending against it should not have a material adverse effect on the Firms consolidated financial condition. However, in light of the uncertainties involved in such proceedings, actions and investigations, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves currently accrued by the Firm; as a result, the outcome of a particular matter may be material to JPMorgan Chases operating results for a particular period depending on

Off-balance sheet lending-relat

Off-balance sheet lending-related financial instruments, guarantees and other commitments
	3 Months Ended Mar. 31, 2010
Off-balance sheet lending-related financial instruments, guarantees and other commitments [Abstract]
OFF-BALANCE SHEET LENDING-RELATED FINANCIAL INSTRUMENTS, GUARANTEES AND OTHER COMMITMENTS	NOTE 22 OFF-BALANCE SHEET LENDING-RELATED FINANCIAL INSTRUMENTS, GUARANTEES AND OTHER COMMITMENTS JPMorgan Chase utilizes lending-related financial instruments (e.g., 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 counterparty draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and the counterparty subsequently fail to perform according to the terms of the contract. These commitments and guarantees often expire without being drawn, and even higher proportions expire without a default. As a result, the total contractual amount of these instruments is not, in the Firms view, representative of its actual future credit exposure or funding requirements. For a discussion of off-balance sheet lending-related financial instruments and guarantees, and the Firms related accounting policies, see Note 31 on pages 230-234 of JPMorgan Chases 2009 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 130 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 and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at March31, 2010, and December31, 2009. 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, guarantees and other commitments Contractual amount Carrying value(i) March 31, December 31, March 31, December 31, (in millions) 2010 2009 2010 2009 Lending-related Consumer: Home equity senior lien $ 18,870 $ 19,246 $ $ Home equity junior lien 35,653 37,231 Prime mortgage 1,136 1,654 Subprime mortgage Option ARMs Auto loans 6,250 5,467 5 7 Credit card 556,207 569,113 All other loans 10,334 11,229 5 5 Total consumer 628,450 643,940 10 12 Wholesale: Other unfunded commitments to extend credit(a)(b) 192,253 192,145 412 356 Asset purchase agreements(b) 22,685 126 Standby letters of credit and financial guarantees(a)(c)(d) 90,364 91,485 877 919 Unused advised lines of credit 39,077

Business segments

Business segments
	3 Months Ended Mar. 31, 2010
Business segments [Abstract]
BUSINESS SEGMENTS	NOTE 23 BUSINESS SEGMENTS The Firm is managed on a line of business basis. There are six major reportable business segments Investment Bank, Retail Financial Services, Card Services, Commercial Banking, Treasury Securities Services and Asset Management, as well as a Corporate/Private Equity segment. The business segments are determined 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 page 17 of this Form 10-Q, and pages 53-54 and Note 34 on pages 237-239 of JPMorgan Chases 2009 Annual Report. Segment results The following tables provide a summary of the Firms segment results for the three months ended March31, 2010, and 2009, on a managed basis. Prior to the January1, 2010, adoption of the new consolidation guidance related to VIEs, the impact of credit card securitization adjustments had 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). Effective January1, 2010, the Firm enhanced its line of business equity framework to better align equity assigned to each line of business with the changes anticipated to occur in the business, and in the competitive and regulatory landscape. The lines of business are now capitalized based on the Tier 1 common standard, rather than the Tier 1 capital standard. Segment results and reconciliation(a) Three months ended March 31, 2010 Investment Retail Financial Card Commercial (in millions, except ratios) Bank Services Services(e) Banking Noninterest revenue $ 6,191 $ 2,752 $ 758 $ 500 Net interest income 2,128 5,024 3,689 916 Total net revenue 8,319 7,776 4,447 1,416 Provision for credit losses (462 ) 3,733 3,512 214 Credit reimbursement (to)/from TSS(b) Noninterest expense(c) 4,838 4,242 1,402 539 Income/(loss) before income tax expense/(benefit) 3,943 (199 ) (467 ) 663 Income tax expense/(benefit) 1,472 (68 ) (164 ) 273 Net income/(loss) $ 2,471 $ (131 ) $ (303 ) $ 390 Average common equity(d) $ 40,000 $ 28,000 $ 15,000 $ 8,000 Average assets 676,122