JP Morgan Chase 2009 Annual Report Download - page 106

Management’s discussion and analysis
JPMorgan Chase & Co./2009 Annual Report
104
WHOLESALE CREDIT PORTFOLIO
As of December 31, 2009, wholesale exposure (IB, CB, TSS and AM)
decreased by $170.5 billion from December 31, 2008. The $170.5
billion decrease was primarily driven by decreases of $82.4 billion of
derivative receivables, $57.9 billion of loans and $32.7 billion of
lending-related commitments. The decrease in derivative receivables
was primarily related to tightening credit spreads, volatile foreign
exchange rates and rising rates on interest rate swaps. Loans and
lending-related commitments decreased across most wholesale lines
of business, as lower customer demand continued to affect the level
of lending activity.
Wholesale
As of or for the year ended December 31, Credit exposure Nonperforming loans(b)
90 days past due
and still accruing
(in millions) 2009 2008 2009 2008 2009 2008
Loans retained $ 200,077
$ 248,089 $ 6,559 $ 2,350 $ 332 $ 163
Loans held-for-sale 2,734 6,259 234 12 — —
Loans at fair value 1,364 7,696 111 20 — —
Loans – reported $ 204,175
$ 262,044 $ 6,904 $ 2,382 $ 332 $ 163
Derivative receivables 80,210 162,626 529 1,079 — —
Receivables from customers 15,745 16,141 — — — —
Interests in purchased receivables 2,927
— — — — —
Total wholesale credit-related assets 303,057
440,811 7,433 3,461 332 163
Lending-related commitments 347,155 379,871 NA NA NA NA
Total wholesale credit exposure $ 650,212
$ 820,682 $ 7,433 $ 3,461 $ 332 $ 163
Net credit derivative hedges notional(a) $ (48,376) $ (91,451) $ (139) $ — NA NA
Liquid securities collateral held against derivatives (15,519) (19,816) NA NA NA NA
(a) Represents the net notional amount of protection purchased and sold of single-name and portfolio credit derivatives used to manage both performing and nonperform-
ing credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. For additional information, see Credit derivatives on pages 111–112, and
Note 5 on pages 175–183 of this Annual Report.
(b) Excludes assets acquired in loan satisfactions. For additional information, see the wholesale nonperforming assets by line of business segment table on pages 108–109
of this Annual Report.