JP Morgan Chase 2008 Annual Report Download - page 148

Notes to consolidated financial statements
146 JPMorgan Chase & Co./ 2008 Annual Report
The following table presents the financial instruments carried at fair value as of December 31, 2008 and 2007, by caption on the Consolidated
Balance Sheets and by SFAS 157 valuation hierarchy (as described above).
Assets and liabilities measured at fair value on a recurring basis
Quoted market Internal models with Internal models with Total carrying value
prices in active significant observable significant unobservable FIN 39 in the Consolidated
December 31, 2008 (in millions) markets (Level 1) market parameters (Level 2) market parameters (Level 3) netting(d) Balance Sheets
Federal funds sold and securities
purchased under resale agreements $ — $ 20,843 $ — $ — $ 20,843
Securities borrowed — 3,381 — — 3,381
Trading assets:
Debt and equity instruments:
U.S. government, agency, sponsored
enterprise and non-U.S. governments 98,393 29,597 870 — 128,860
State and municipal securities — 10,361 2,641 — 13,002
Certificates of deposit, bankers’
acceptances and commercial paper 1,180 6,312 — — 7,492
Corporate debt and other 5 61,230 6,506 — 67,741
Equity securities 73,174 3,992 1,380 — 78,546
Loans — 14,711 17,091 — 31,802
Mortgage- and asset-backed securities — 3,401 12,932 — 16,333
Physical commodities(a) — 3,581 — — 3,581
Total debt and equity instruments: 172,752 133,185 41,420 — 347,357
Derivative receivables 3,630 2,685,101 52,991 (2,579,096) 162,626
Total trading assets 176,382 2,818,286 94,411 (2,579,096) 509,983
Available-for-sale securities 118,823 74,695 12,391 — 205,909
Loans — 5,029 2,667 — 7,696
Mortgage servicing rights — — 9,403 — 9,403
Other assets:
Private equity investments 151 332 6,369 — 6,852
All other 5,977 11,355 5,015 — 22,347
Total other assets 6,128 11,687 11,384 — 29,199
Total assets at fair value $ 301,333 $ 2,933,921 $ 130,256 $ (2,579,096) $ 786,414
Less: Level 3 assets for which the Firm
does not bear economic exposure(b) 21,169
Total level 3 assets for which the Firm
bears economic exposure $ 109,087
Deposits $ — $ 4,370 $ 1,235 $ — $ 5,605
Federal funds purchased and securities
loaned or sold under repurchase
agreements — 2,993 — — 2,993
Other borrowed funds — 14,612 101 — 14,713
Trading liabilities:
Debt and equity instruments 34,568 10,418 288 — 45,274
Derivative payables 3,630 2,622,371 43,484 (2,547,881) 121,604
Total trading liabilities 38,198 2,632,789 43,772 (2,547,881) 166,878
Accounts payable and
other liabilities —— ———
Beneficial interests issued by
consolidated VIEs — 1,735 — — 1,735
Long-term debt — 41,666 16,548 — 58,214
Total liabilities at fair value $ 38,198 $ 2,698,165 $ 61,656 $ (2,547,881) $ 250,138