JP Morgan Chase 2010 Annual Report Download - page 291

JPMorgan Chase & Co./2010 Annual Report
291
Retail Financial Services
RFS serves consumers and businesses through personal service at
bank branches and through ATMs, online banking and telephone
banking, as well as through auto dealerships and school financial-
aid offices. Customers can use more than 5,200 bank branches
(third-largest nationally) and 16,100 ATMs (second-largest nation-
ally), as well as online and mobile banking around the clock. More
than 28,900 branch salespeople assist customers with checking
and savings accounts, mortgages, home equity and business loans,
and investments across the 23-state footprint from New York and
Florida to California. Consumers also can obtain loans through
more than 16,200 auto dealerships and 2,200 schools and universi-
ties nationwide.
Card Services
CS is one of the nation’s largest credit card issuers, with over $137
billion in loans and over 90 million open accounts. Customers used
Chase cards to meet $313 billion of their spending needs in 2010.
Through its merchant acquiring business, Chase Paymentech Solu-
tions, CS is a global leader in payment processing and merchant
acquiring.
Commercial Banking
CB delivers extensive industry knowledge, local expertise and dedi-
cated service to nearly 24,000 clients nationally, including corpora-
tions, municipalities, financial institutions and not-for-profit entities
with annual revenue generally ranging from $10 million to $2 billion,
and nearly 35,000 real estate investors/owners. CB partners with the
Firm’s other businesses to provide comprehensive solutions, including
lending, treasury services, investment banking and asset manage-
ment to meet its clients’ domestic and international financial needs.
Treasury & Securities Services
TSS is a global leader in transaction, investment and information
services. TSS is one of the world’s largest cash management pro-
viders and a leading global custodian. Treasury Services (“TS”)
provides cash management, trade, wholesale card and liquidity
products and services to small- and mid-sized companies, multina-
tional corporations, financial institutions and government entities.
TS partners with IB, CB, RFS and AM businesses to serve clients
firmwide. Certain TS revenue is included in other segments’ results.
Worldwide Securities Services holds, values, clears and services
securities, cash and alternative investments for investors and bro-
ker-dealers, and manages depositary receipt programs globally.
Asset Management
AM, with assets under supervision of $1.8 trillion, is a global leader in
investment and wealth management. AM clients include institutions,
retail investors and high-net-worth individuals in every major market
throughout the world. AM offers global investment management in
equities, fixed income, real estate, hedge funds, private equity and
liquidity products, including money-market instruments and bank
deposits. AM also provides trust and estate, banking and brokerage
services to high-net-worth clients, and retirement services for corpora-
tions and individuals. The majority of AM’s client assets are in ac-
tively managed portfolios.
Corporate/Private Equity
The Corporate/Private Equity sector comprises Private Equity,
Treasury, the Chief Investment Office, corporate staff units and
expense that is centrally managed. Treasury and the Chief Invest-
ment Office manage capital, liquidity, and structural risks of the
Firm. The corporate staff units include Central Technology and
Operations, Internal Audit, Executive Office, Finance, Human Re-
sources, Marketing & Communications, Legal & Compliance, Cor-
porate Real Estate and General Services, Risk Management,
Corporate Responsibility and Strategy & Development. Other cen-
trally managed expense includes the Firm’s occupancy and pension-
related expense, net of allocations to the business.
Effective January 1, 2010, the Firm enhanced its line-of-business equity
framework to better align equity assigned to each line of business with
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.
Line-of-business equity increased during the second quarter of 2008 in
IB and AM due to the Bear Stearns merger and for AM, the purchase of
the additional equity interest in Highbridge. At the end of the third
quarter of 2008, equity was increased for each line of business with a
view toward the future implementation of the new Basel II capital
rules. In addition, equity allocated to RFS, CS and CB was increased as
a result of the Washington Mutual transaction.