JP Morgan Chase 2014 Annual Report Download - page 315

Glossary of Terms
JPMorgan Chase & Co./2014 Annual Report 313
banking products (i.e., business loans, letters of credit,
deposit accounts, Chase Paymentech, etc.) and mortgage
products to existing and new clients.
Seed capital: Initial JPMorgan capital invested in products,
such as mutual funds, with the intention of ensuring the
fund is of sufficient size to represent a viable offering to
clients, enabling pricing of its shares, and allowing the
manager to develop a track record. After these goals are
achieved, the intent is to remove the Firm’s capital from the
investment.
Short sale: A short sale is a sale of real estate in which
proceeds from selling the underlying property are less than
the amount owed the Firm under the terms of the related
mortgage and the related lien is released upon receipt of
such proceeds.
Structured notes: Structured notes are predominantly
financial instruments containing embedded derivatives.
Where present, the embedded derivative is the primary
driver of risk.
Suspended foreclosures: Loans referred to foreclosure
where formal foreclosure proceedings have started but are
currently on hold, which could be due to bankruptcy or loss
mitigation. Includes both judicial and non-judicial states.
Taxable-equivalent basis: In presenting managed results,
the total net revenue for each of the business segments and
the Firm is presented on a tax-equivalent basis. Accordingly,
revenue from investments that receive tax credits and tax-
exempt securities is presented in the managed results on a
basis comparable to taxable investments and securities; the
corresponding income tax impact related to tax-exempt
items is recorded within income tax expense.
Trade-date and settlement-date: For financial instruments,
the trade-date is the date that an order to purchase, sell or
otherwise acquire an instrument is executed in the market.
The trade-date may differ from the settlement-date, which
is the date on which the actual transfer of a financial
instrument between two parties is executed. The amount of
time that passes between the trade-date and the
settlement-date differs depending on the financial
instrument. For repurchases under the common equity
repurchase program, except where the trade-date is
specified, the amounts disclosed are presented on a
settlement-date basis. In the Capital Management section
on pages 146–155, and where otherwise specified,
repurchases under the common equity repurchase program
are presented on a trade-date basis because the trade-date
is used to calculate the Firm’s regulatory capital.
Troubled debt restructuring (“TDR”): A TDR is deemed to
occur when the Firm modifies the original terms of a loan
agreement by granting a concession to a borrower that is
experiencing financial difficulty.
Unaudited: Financial statements and information that have
not been subjected to auditing procedures sufficient to
permit an independent certified public accountant to
express an opinion.
U.S. GAAP: Accounting principles generally accepted in the
U.S.
U.S. government-sponsored enterprise obligations:
Obligations of agencies originally established or chartered
by the U.S. government to serve public purposes as
specified by the U.S. Congress; these obligations are not
explicitly guaranteed as to the timely payment of principal
and interest by the full faith and credit of the U.S.
government.
U.S. Treasury: U.S. Department of the Treasury.
Value-at-risk (“VaR”): A measure of the dollar amount of
potential loss from adverse market moves in an ordinary
market environment.
Warehouse loans: Consist of prime mortgages originated
with the intent to sell that are accounted for at fair value
and classified as trading assets.
Washington Mutual transaction: On September 25, 2008,
JPMorgan Chase acquired certain of the assets of the
banking operations of Washington Mutual Bank
(“Washington Mutual”) from the FDIC.