JP Morgan Chase 2008 Annual Report Download - page 204

Notes to consolidated financial statements
202 JPMorgan Chase & Co./ 2008 Annual Report
Note 21 – Other borrowed funds
The following table details the components of other borrowed funds.
December 31, (in millions) 2008 2007
Advances from Federal Home Loan Banks(a) $ 70,187 $ 450
Nonrecourse advances – FRBB(b) 11,192 —
Other 51,021(c) 28,385
Total $ 132,400 $ 28,835
(a) Maturities of advances from the Federal Home Loan Banks were $47.4 billion,
$18.5 billion, $2.6 billion, and $714 million in each of the 12-month periods ending
December 31, 2009, 2010, 2011, and 2013, respectively, and $1.0 billion maturing
after December 31, 2013. Maturities for the 12-month period ending December 31,
2012 were not material.
(b) On September 19, 2008, the Federal Reserve Board established a temporary lending
facility, the AML Facility, to provide liquidity to eligible U.S. money market mutual funds
(“MMMFs”). Under the AML Facility, banking organizations must use the loan pro-
ceeds to finance their purchases of eligible high-quality ABCP investments from
MMMFs, which are pledged to secure nonrecourse advances from the 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 AML Facility will be in effect until October
30, 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 $30.0 billion of advances from the Federal Reserve under the Federal
Reserve’s Term Auction Facility (“TAF”), pursuant to which the Federal Reserve auc-
tions term funds to depository institutions that are eligible to borrow under the pri-
mary 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 auc-
tion. 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 mar-
kets are not operating efficiently. The TAF does not have a fixed expiration date.
Note 22 – Accounts payable and other
liabilities
The following table details the components of accounts payable and
other liabilities at each of the dates indicated.
December 31, (in millions) 2008 2007
Accounts payable and other liabilities:
Accounts payable $ 48,019 $ 39,785
Brokerage payables(a) 88,585 14,612
Other liabilities 51,374 40,079
Total $ 187,978 $ 94,476
(a) Includes payables to customers, brokers, dealers and clearing organizations, and
securities fails.
Note 20 – Deposits
At December 31, 2008 and 2007, noninterest-bearing and interest-
bearing deposits were as follows.
December 31, (in millions) 2008 2007
U.S. offices:
Noninterest-bearing $ 210,899 $129,406
Interest-bearing (included $1,849 and
$1,909 at fair value at December 31,
2008 and 2007, respectively) 511,077 376,194
Non-U.S. offices:
Noninterest-bearing 7,697 6,342
Interest-bearing (included $3,756 and
$4,480 at fair value at December 31,
2008 and 2007, respectively) 279,604 228,786
Total $ 1,009,277 $740,728
At December 31, 2008 and 2007, time deposits in denominations of
$100,000 or more were as follows.
December 31, (in millions) 2008 2007
U.S. $ 147,493 $134,529
Non-U.S. 58,247 69,171
Total $ 205,740 $203,700
At December 31, 2008, the maturities of time deposits were as
follows.
December 31, 2008
(in millions) U.S. Non-U.S. Total
2009 $ 200,586 $ 77,934 $ 278,520
2010 5,388 916 6,304
2011 4,299 811 5,110
2012 4,418 429 4,847
2013 2,767 525 3,292
After 5 years 802 226 1,028
Total $ 218,260 $ 80,841 $ 299,101
On October 3, 2008, the Emergency Economic Stabilization Act of 2008
was signed into law. The Act increased FDIC deposit insurance from
$100,000 to $250,000 per depositor through December 31, 2009. In
addition, on November 21, 2008, the FDIC released the Final Rule for
the FDIC Temporary Liquidity Guarantee Program (“TLG Program”),
which provides unlimited deposit insurance through December 31,
2009, for noninterest-bearing transaction deposit accounts at FDIC-
insured participating institutions. The Firm elected to continue to partici-
pate in the TLG Program and, as a result, will be required to pay addi-
tional insurance premiums to the FDIC in an amount equal to an annu-
alized 10-basis points on balances in nointerest-bearing transaction
accounts that exceed the $250,000 FDIC deposit insurance limits, as
determined on a quarterly basis.