Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2012

Variable Interest Entities [Abstract]

Firm-sponsored mortgage and other consumer securitization trusts [Table Text Block]

The following table presents the total unpaid principal amount of assets held in Firm-sponsored private-label securitization entities, including those in which the Firm has continuing involvement, and those that are consolidated by the Firm. Continuing involvement includes servicing the loans, holding senior interests or subordinated interests, recourse or guarantee arrangements, and derivative transactions. In certain instances, the Firm’s only continuing involvement is servicing the loans. See Securitization activity on page 289 of this Note for further information regarding the Firm’s cash flows with and interests retained in nonconsolidated VIEs, and pages 289–290 of this Note for information on the Firm’s loan sales to U.S. government agencies.

	Principal amount outstanding						JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(d)(e)(f)
December 31, 2012 (a) (in billions)	Total assets held by securitization VIEs		Assets held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets		AFS securities		Total interests held by JPMorgan Chase
Securitization-related
Residential mortgage:
Prime and Alt-A	$	107.2	$	2.5	$	80.6	$	0.3	$	—	$	0.3
Subprime	34.5		1.3		31.3		0.1		—		0.1
Option ARMs	26.3		0.2		26.1		—		—		—
Commercial and other(b)	127.8		—		81.8		1.5		2.8		4.3
Total	$	295.8	$	4.0	$	219.8	$	1.9	$	2.8	$	4.7

	Principal amount outstanding						JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(d)(e)(f)
December 31, 2011(a) (in billions)	Total assets held by securitization VIEs		Assets held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets		AFS securities		Total interests held by JPMorgan Chase
Securitization-related
Residential mortgage:
Prime and Alt-A	$	129.9	$	2.7	$	101.0	$	0.6	$	—	$	0.6
Subprime	39.4		1.4		35.8		—		—		—
Option ARMs	31.4		0.3		31.1		—		—		—
Commercial and other(b)	139.3		—		93.3		1.7		2.0		3.7
Total(c)	$	340.0	$	4.4	$	261.2	$	2.3	$	2.0	$	4.3

(a) Excludes U.S. government agency securitizations. See pages 289–290 of this Note for information on the Firm’s loan sales to U.S. government agencies.

(b) Consists of securities backed by commercial loans (predominantly real estate) and non-mortgage-related consumer receivables purchased from third parties. The Firm generally does not retain a residual interest in its sponsored commercial mortgage securitization transactions.

(c) Prior period amounts have been revised to conform with the current presentation methodology.

(d) The table above excludes the following: retained servicing (see Note 17 on pages 291–295 of this Annual Report for a discussion of MSRs); securities retained from loans sales to U.S. government agencies; interest rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization entities (See Note 6 on pages 218–227 of this Annual Report for further information on derivatives); senior and subordinated securities of $131 million and $45 million, respectively, at December 31, 2012, and $110 million and $8 million, respectively, at December 31, 2011, which the Firm purchased in connection with CIB’s secondary market-making activities.

(e) Includes interests held in re-securitization transactions.

(f) As of December 31, 2012 and 2011, 74% and 68%, respectively, of the Firm’s retained securitization interests, which are carried at fair value, were risk-rated “A” or better, on an S&P-equivalent basis. The retained interests in prime residential mortgages consisted of $170 million and $136 million of investment-grade and $171 million and $427 million of noninvestment-grade retained interests at December 31, 2012 and 2011, respectively. The retained interests in commercial and other securitizations trusts consisted of $4.1 billion and $3.4 billion of investment-grade and $164 million and $283 million of noninvestment-grade retained interests at December 31, 2012 and 2011, respectively.

Firm's exposure to nonconsolidated municipal bond VIEs [Table Text Block]

The Firm’s exposure to nonconsolidated municipal bond VIEs at December 31, 2012 and 2011, including the ratings profile of the VIEs’ assets, was as follows.

December 31, (in billions)	Fair value of assets held by VIEs		Liquidity facilities		Excess/(deficit)(a)		Maximum exposure
Nonconsolidated municipal bond vehicles
2012	$	14.2	$	8.0	$	6.2	$	8.0
2011	13.5		7.9		5.6		7.9

Ratings profile of the VIEs' assets [Table Text Block]

	Ratings profile of VIE assets(b)										Fair value of assets held by VIEs		Wt. avg. expected life of assets (years)
	Investment-grade								Noninvestment- grade
December 31, (in billions, except where otherwise noted)	AAA to AAA-		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below
2012	$	1.6	$	11.8	$	0.8	$	—	$	—	$	14.2	5.9
2011	1.5		11.2		0.7		—		0.1		13.5		6.6

(a) Represents the excess/(deficit) of the fair values of municipal bond assets available to repay the liquidity facilities, if drawn.

(b) The ratings scale is based on the Firm’s internal risk ratings and is presented on an S&P-equivalent basis.

Exposure to nonconsolidated credit-linked note and asset swap VIEs [Table Text Block]

Exposure to nonconsolidated credit-related note and asset swap VIEs at December 31, 2012 and 2011, was as follows.

December 31, 2012 (in billions)	Net derivative receivables		Total exposure		Par value of collateral held by VIEs(a)
Credit-related notes
Static structure	$	0.5	$	0.5	$	7.3
Managed structure	0.6		0.6		5.6
Total credit-related notes	1.1		1.1		12.9
Asset swaps	0.4		0.4		7.9
Total	$	1.5	$	1.5	$	20.8
December 31, 2011 (in billions)	Net derivative receivables		Total exposure		Par value of collateral held by VIEs(a)
Credit-related notes
Static structure	$	1.0	$	1.0	$	9.1
Managed structure	2.7		2.7		7.7
Total credit-related notes	3.7		3.7		16.8
Asset swaps	0.6		0.6		8.6
Total	$	4.3	$	4.3	$	25.4

(a) The Firm’s maximum exposure arises through the derivatives executed with the VIEs; the exposure varies over time with changes in the fair value of the derivatives. The Firm relies on the collateral held by the VIEs to pay any amounts due under the derivatives; the vehicles are structured at inception so that the par value of the collateral is expected to be sufficient to pay amounts due under the derivative contracts.

Information on assets and liabilities related to VIEs that are consolidated by the Firm [Table Text Block]

The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of December 31, 2012 and 2011.

	Assets								Liabilities
December 31, 2012 (in billions)(a)	Trading assets – debt and equity instruments		Loans		Other(d)		Total assets(e)		Beneficial interests in VIE assets(f)		Other(g)		Total liabilities
VIE program type
Firm-sponsored credit card trusts	$	—	$	51.9	$	0.8	$	52.7	$	30.1	$	—	$	30.1
Firm-administered multi-seller conduits	—		25.4		0.1		25.5		17.2		—		17.2
Municipal bond vehicles	9.8		—		0.1		9.9		11.0		—		11.0
Mortgage securitization entities(b)	1.4		2.0		—		3.4		2.3		1.1		3.4
Other(c)	0.8		3.4		1.1		5.3		2.6		0.1		2.7
Total	$	12.0	$	82.7	$	2.1	$	96.8	$	63.2	$	1.2	$	64.4
	Assets								Liabilities
December 31, 2011 (in billions)(a)	Trading assets – debt and equity instruments		Loans		Other(d)		Total assets(e)		Beneficial interests in VIE assets(f)		Other(g)		Total liabilities
VIE program type
Firm-sponsored credit card trusts	$	—	$	50.7	$	0.8	$	51.5	$	32.5	$	—	$	32.5
Firm-administered multi-seller conduits	—		29.7		0.2		29.9		18.7		—		18.7
Municipal bond vehicles	9.2		—		0.1		9.3		9.2		—		9.2
Mortgage securitization entities(b)	1.4		2.3		—		3.7		2.3		1.3		3.6
Other(c)	1.5		4.1		1.5		7.1		3.3		0.2		3.5
Total	$	12.1	$	86.8	$	2.6	$	101.5	$	66.0	$	1.5	$	67.5

(a) Excludes intercompany transactions which were eliminated in consolidation.

(b) Includes residential and commercial mortgage securitizations as well as re-securitizations.

(c) Primarily comprises student loan securitization entities. The Firm consolidated $3.3 billion and $4.1 billion of student loan securitization entities as of December 31, 2012 and 2011, respectively.

(d) Includes assets classified as cash, derivative receivables, AFS securities, and other assets within the Consolidated Balance Sheets.

(e) The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The difference between total assets and total liabilities recognized for consolidated VIEs represents the Firm’s interest in the consolidated VIEs for each program type.

(f) The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified in the line item on the Consolidated Balance Sheets titled, “Beneficial interests issued by consolidated variable interest entities.” The holders of these beneficial interests do not have recourse to the general credit of JPMorgan Chase. Included in beneficial interests in VIE assets are long-term beneficial interests of $35.0 billion and $39.7 billion at December 31, 2012 and 2011, respectively. The maturities of the long-term beneficial interests as of December 31, 2012, were as follows: $11.9 billion under one year, $16.0 billion between one and five years, and $7.1 billion over five years, all respectively.

(g) Includes liabilities classified as accounts payable and other liabilities in the Consolidated Balance Sheets.

Securitization activities [Table Text Block]

The following tables provide information related to the Firm’s securitization activities for the years ended December 31, 2012, 2011 and 2010, related to assets held in JPMorgan Chase-sponsored securitization entities that were not consolidated by the Firm, and where sale accounting was achieved based on the accounting rules in effect at the time of the securitization.

	2012				2011				2010
Year ended December 31, (in millions, except rates)(a)	Residential mortgage(d)(e)		Commercial and other(f)(g)		Residential mortgage(d)(e)		Commercial and other(f)(g)		Residential mortgage(d)(e)		Commercial and other(f)(g)
Principal securitized	$	—	$	5,421	$	—	$	5,961	$	35	$	2,237
All cash flows during the period:
Proceeds from new securitizations(b)	$	—	$	5,705	$	—	$	6,142	$	36	$	2,369
Servicing fees collected	662		4		755		4		968		4
Purchases of previously transferred financial assets (or the underlying collateral)(c)	222		—		772		—		321		—
Cash flows received on interests	185		163		235		178		319		143

(a) Excludes re-securitization transactions.

(b) Proceeds from commercial mortgage securitizations were received in the form of securities. During 2012, $5.7 billion of commercial mortgage securitizations were classified in level 2 of the fair value hierarchy. During 2011, $4.0 billion and $2.1 billion of commercial mortgage securitizations were classified in levels 2 and 3 of the fair value hierarchy, respectively. During 2010, $2.2 billion and $172 million of residential and commercial mortgage securitizations were classified in levels 2 and 3 of the fair value hierarchy, respectively.

(c) Includes cash paid by the Firm to reacquire assets from off–balance sheet, nonconsolidated entities – for example, loan repurchases due to representation and warranties and servicer clean-up calls

(d) Includes prime, Alt-A, subprime, and option ARMs. Excludes sales for which the Firm did not securitize the loan (including loans sold to Ginnie Mae, Fannie Mae and Freddie Mac).

(e) There were no residential mortgage securitizations during 2012 and 2011.

(f) Includes commercial and student loan securitizations.

(g) Key assumptions used to measure retained interests originated during the year included weighted-average life (in years) of 8.8, 1.7 and 7.1 for the years ended December 31, 2012, 2011, and 2010, respectively, and weighted-average discount rate of 3.6%, 3.5% and 7.7% for the years ended December 31, 2012, 2011, and 2010, respectively.

Summary of loan sale activities [Table Text Block]

The following table summarizes the activities related to loans sold to U.S. government-sponsored agencies and third-party-sponsored securitization entities.

Year ended December 31, (in millions)	2012		2011		2010
Carrying value of loans sold(a)	$	180,097	$	150,632	$	156,615
Proceeds received from loan sales as cash	$	1,270	$	2,864	$	3,887
Proceeds from loan sales as securities(b)	176,592		145,340		149,786
Total proceeds received from loan sales(c)	$	177,862	$	148,204	$	153,673
Gains on loan sales(d)	141		133		212

(a) Predominantly to U.S. government agencies.

(b) Predominantly includes securities from U.S. government agencies that are generally sold shortly after receipt.

(c) Excludes the value of MSRs retained upon the sale of loans. Gains on loan sales include the value of MSRs.

(d) The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.

Key economic assumptions used to determine the fair value of certain Firm's retained interests in nonconsolidated VIEs, other than MSRs [Table Text Block]

The following table outlines the key economic assumptions used to determine the fair value, as of December 31, 2012 and 2011, of certain of the Firm’s retained interests in nonconsolidated VIEs (other than MSRs), that are valued using modeling techniques. The table also outlines the sensitivities of those fair values to immediate 10% and 20% adverse changes in assumptions used to determine fair value. For a discussion of MSRs, see Note 17 on pages 291–295 of this Annual Report.

	Commercial and other
December 31, (in millions, except rates and where otherwise noted)(a)	2012			2011(d)
JPMorgan Chase interests in securitized assets(b)	$	1,488		$	1,585
Weighted-average life (in years)	6.1			1.0
Weighted-average discount rate(c)	4.1		%	59.1		%
Impact of 10% adverse change	$	(34	)	$	(45	)
Impact of 20% adverse change	(65		)	(76		)

(a) The Firm’s interests in prime mortgage securitizations were $341 million and $555 million, as of December 31, 2012 and 2011, respectively. These include retained interests in Alt-A loans and re-securitization transactions. The Firm’s interests in subprime mortgage securitizations were $68 million and $31 million, as of December 31, 2012 and 2011, respectively. Additionally, the Firm had interests in option ARM mortgage securitizations of $23 million at December 31, 2011.

(b) Includes certain investments acquired in the secondary market but predominantly held for investment purposes.

(c) Incorporates the Firm’s weighted-average loss assumption.

(d) The prior period has been reclassified to conform with the current presentation.

Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Table Text Block]

The table below includes information about components of nonconsolidated securitized financial assets, in which the Firm has continuing involvement, and delinquencies as of December 31, 2012 and 2011.

	Securitized assets				90 days past due				Liquidation losses
As of or for the year ended December 31, (in millions)	2012		2011		2012		2011		2012		2011
Securitized loans(a)
Residential mortgage:
Prime mortgage(b)	$	80,572	$	101,004	$	16,270	$	24,285	$	6,850	$	5,650
Subprime mortgage	31,264		35,755		10,570		14,293		3,013		3,086
Option ARMs	26,095		31,075		6,595		9,999		2,268		1,907
Commercial and other	81,834		93,336		4,077		4,836		1,265		1,101
Total loans securitized(c)	$	219,765	$	261,170	$	37,512	$	53,413	$	13,396	$	11,744

(a) Total assets held in securitization-related SPEs were $295.8 billion and $340.0 billion, respectively, at December 31, 2012 and 2011. The $219.8 billion and $261.2 billion, respectively, of loans securitized at December 31, 2012 and 2011, excludes: $72.0 billion and $74.4 billion, respectively, of securitized loans in which the Firm has no continuing involvement, and $4.0 billion and $4.4 billion, respectively, of loan securitizations consolidated on the Firm’s Consolidated Balance Sheets at December 31, 2012 and 2011.

(b) Includes Alt-A loans.

(c) Includes securitized loans that were previously recorded at fair value and classified as trading assets.