Credit Loss Reserves

6 Months Ended

Jun. 30, 2011

Credit Loss Reserves [Abstract]

Credit Loss Reserves

6.   Credit Loss Reserves

An analysis of credit loss reserves was as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
	(in millions)
Credit loss reserves at beginning of period	$	5,710		$	8,265		$	6,491		$	9,091
Provision for credit losses		781			1,597			1,563			3,461
Charge-offs		(1,356	)		(2,634	)		(3,116	)		(5,504	)
Recoveries		190			170			387			350
Credit loss reserves at end of period	$	5,325		$	7,398		$	5,325		$	7,398

The following table summarizes the changes in credit loss reserves by product/class and the related receivable balance by product during the three and six months ended June 30, 2011 and 2010:

	Real Estate Secured
	First			Second			Credit			Personal Non-			Comm’l
	Lien			Lien			Card			Credit Card			and Other		Total
	(in millions)
Three Months Ended June 30, 2011:
Credit loss reserve balances at beginning of period	$	3,167		$	694		$	765		$	1,084		$	-	$	5,710
Provision for credit losses		406			133			199			43			-		781
Charge-offs		(579	)		(208	)		(280	)		(289	)		-		(1,356	)
Recoveries		9			16			50			115			-		190
Net charge-offs		(570	)		(192	)		(230	)		(174	)		-		(1,166	)
Credit loss reserve balance at end of period	$	3,003		$	635		$	734		$	953		$	-	$	5,325
Three Months Ended June 30, 2010:
Credit loss reserve balances at beginning of period	$	3,879		$	1,108		$	1,488		$	1,790		$	-	$	8,265
Provision for credit losses		599			346			280			372			-		1,597
Charge-offs		(1,106	)		(373	)		(531	)		(624	)		-		(2,634	)
Recoveries		12			16			57			85			-		170
Net charge-offs		(1,094	)		(357	)		(474	)		(539	)		-		(2,464	)
Credit loss reserve balance at end of period	$	3,384		$	1,097		$	1,294		$	1,623		$	-	$	7,398
Six Months Ended June 30, 2011:
Credit loss reserve balances at beginning of period	$	3,355		$	832		$	978		$	1,326		$	-	$	6,491
Provision for credit losses		991			238			273			61			-		1,563
Charge-offs		(1,362	)		(468	)		(623	)		(663	)		-		(3,116	)
Recoveries		19			33			106			229			-		387
Net charge-offs		(1,343	)		(435	)		(517	)		(434	)		-		(2,729	)
Credit loss reserve balance at end of period	$	3,003		$	635		$	734		$	953		$	-	$	5,325
Ending balance: collectively evaluated for impairment	$	1,260		$	415		$	605		$	623		$	-	$	2,903
Ending balance: individually evaluated for impairment(1)		1,730			218			129			330			-		2,407
Ending balance: loans acquired with deteriorated credit quality		13			2			-			-			-		15
Total credit loss reserves	$	3,003		$	635		$	734		$	953		$	-	$	5,325
Receivables:
Collectively evaluated for impairment	$	28,579		$	4,262		$	8,857		$	5,397		$	26	$	47,121
Individually evaluated for impairment(1)		6,775			568			355			615			-		8,313
Receivables carried at net realizable value		5,283			83			-			-			-		5,366
Receivables acquired with deteriorated credit quality		35			6			-			-			-		41
Total receivables	$	40,672		$	4,919		$	9,212		$	6,012		$	26	$	60,841
Six Months Ended June 30, 2010:
Credit loss reserve balances at beginning of period	$	3,997		$	1,430		$	1,816		$	1,848		$	-	$	9,091
Provision for credit losses		1,518			472			479			992			-		3,461
Charge-offs		(2,152	)		(843	)		(1,119	)		(1,390	)		-		(5,504	)
Recoveries		21			38			118			173			-		350
Net charge-offs		(2,131	)		(805	)		(1,001	)		(1,217	)		-		(5,154	)
Credit loss reserve balance at end of period	$	3,384		$	1,097		$	1,294		$	1,623		$	-	$	7,398
Ending balance: collectively evaluated for impairment	$	1,523		$	794		$	1,136		$	1,195		$	-	$	4,648
Ending balance: individually evaluated for impairment(1)		1,848			300			158			428			-		2,734
Ending balance: loans acquired with deteriorated credit quality		13			3			-			-			-		16
Total credit loss reserves	$	3,384		$	1,097		$	1,294		$	1,623		$	-	$	7,398
Receivables:
Collectively evaluated for impairment	$	35,417		$	5,609		$	9,658		$	7,786		$	48	$	58,518
Individually evaluated for impairment(1)		7,750			705			461			746			-		9,662
Receivables carried at net realizable value		4,506			52			-			-			-		4,558
Receivables acquired with deteriorated credit quality		36			8			-			-			-		44
Total receivables	$	47,709		$	6,374		$	10,119		$	8,532		$	48	$	72,782

⁽¹⁾ These amounts represent TDR Loans for which we evaluate reserves using a discounted cash flow methodology. Each loan is individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow impairment analysis is then applied to these groups of TDR Loans.