Management’s discussion and analysis 110 JPMorgan Chase & Co.  / 2008 Annual Report The allowance for credit losses increased $13.7 billion from the prior year to $23.8 billion.
The increase included $4.1 billion of allowance related to noncredit-impaired loans acquired in the Washington Mutual transaction and the related accounting conformity provision.
Excluding held-for-sale loans, loans carried at fair value, and purchased credit-impaired consumer loans, the allowance for loan losses represented 3.62% of loans at December 31, 2008, compared with 1.88% at December 31, 2007.
The consumer allowance for loan losses increased $10.5 billion from the prior year as a result of the Washington Mutual transaction and increased allowance for loan loss in residential real estate and credit card.
The increase included additions to the allowance for loan losses of $4.7 billion driven by higher estimated losses for residential mortgage and home equity loans as the weak labor market and weak overall economic conditions have resulted in increased delinquencies, while continued weak housing prices have driven a significant increase in loss severity.
The allowance for loan losses related to credit card increased $4.3 billion from the prior year primarily due to the acquired allowance and subsequent conforming provision for loan loss related to the Washington Mutual Bank acquisition and an increase in provision for loan losses of $2.3 billion in 2008 over 2007, as higher estimated net charge-offs are expected in the portfolio resulting from the current economic conditions.
The wholesale allowance for loan losses increase of $3.4 billion from December 31, 2007, reflected the effect of a weakening credit environment and the transfer of $4.9 billion of funded and unfunded leveraged lending commitments to retained loans from held-for-sale.
To provide for the risk of loss inherent in the Firm’s process of extending credit, an allowance for lending-related commitments is held for both wholesale and consumer, which is reported in other liabilities.
The wholesale component is computed using a methodology similar to that used for the wholesale loan portfolio, modified for expected maturities and probabilities of drawdown and has an assetspecific component and a formula-based component.
For a further discussion on the allowance for lending-related commitment see Note 15 on pages 178–180 of this Annual Report.
The allowance for lending-related commitments for both wholesale and consumer was $659 million and $850 million at December 31, 2008 and 2007, respectively.
The decrease reflects the reduction in lending-related commitments at December 31, 2008.
For more information, see page 102 of this Annual Report.
The following table presents the allowance for loan losses and net charge-offs (recoveries) by business segment at December 31, 2008 and 2007.
## Table 0 ##
Pursuant to the U. S.  Treasury’s Capital Purchase Program, the Firm issued to the U. S.  Treasury a Warrant to purchase up to 88,401,697 shares of the Firm’s common stock, at an exercise price of $42.42 per share, subject to certain antidilution and other adjustments.
The U. S.  Treasury exchanged the Warrant for 88,401,697 warrants, each of which was a warrant to purchase a share of the Firm’s common stock at an exercise price of $42.42 per share and, on December 11, 2009, sold the warrants in a secondary public offering for $950 million.
The warrants are exercisable, in whole or in part, at any time and from time to time until October 28, 2018.
As part of its common equity repurchase program discussed below, during 2012 and 2011, the Firm repurchased 18,471,300 and 10,167,698 warrants, for $238 million and $122 million, respectively, which resulted in adjustments to capital surplus.
The Firm did not repurchase any of the warrants during 2010.
At December 31, 2012 and 2011, respectively, 59,762,699 and 78,233,999 warrants remained outstanding.
On March 18, 2011, the Board of Directors approved a $15.0 billion common equity (i. e. , common stock and warrants) repurchase program, of which $8.95 billion was authorized for repurchase in 2011.
On March 13, 2012, the Board of Directors authorized a $15.0 billion common equity repurchase program, of which up to $12.0 billion was approved for repurchase in 2012 and up to an additional $3.0 billion is approved for repurchases through the end of the first quarter of 2013.
Following the voluntary cessation of its common equity repurchase program in May 2012, the Firm resubmitted its capital plan to the Federal Reserve under the 2012 CCAR process in August 2012.
Pursuant to a non-objection received from the Federal Reserve on November 5, 2012, with respect to the resubmitted capital plan, the Firm is authorized to repurchase up to $3.0 billion of common equity in the first quarter of 2013.
During 2012, 2011 and 2010, the Firm repurchased (on a trade-date basis) 31 million, 229 million, and 78 million shares of common stock, for $1.3 billion, $8.8 billion and $3.0 billion, respectively.
For additional information regarding repurchases of the Firm’s equity securities, see Part II, Item 5: Market for registrant’s common equity, related stockholder matters and issuer purchases of equity securities, on pages 22–23 of JPMorgan Chase’s 2012 Form 10-K.
The Firm may, from time to time, enter into written trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934 to facilitate repurchases in accordance with the repurchase program.
A Rule 10b5-1 repurchase plan allows the Firm to repurchase its equity during periods when it would not otherwise be repurchasing common equity – for example, during internal trading “black-out periods.
” All purchases under a Rule 10b5-1 plan must be made according to a predefined plan established when the Firm is not aware of material nonpublic information.
As of December 31, 2012, approximately 325 million unissued shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, director compensation plans, and the warrants sold by the U. S.  Treasury as discussed above.
Note 24 – Earnings per share Earnings per share (“EPS”) is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends.
JPMorgan Chase grants restricted stock and RSUs to certain employees under its stock-based compensation programs, which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock; these unvested awards meet the definition of participating securities.
Options issued under employee benefit plans that have an antidilutive effect are excluded from the computation of diluted EPS.
The following table presents the calculation of basic and diluted EPS for the years ended December 31, 2012, 2011 and 2010.
## Table 1 ##
(a) Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and the warrants originally issued in 2008 under the U. S.  Treasury’s Capital Purchase Program to purchase shares of the Firm’s common stock.
The aggregate number of shares issuable upon the exercise of such options and warrants was 148 million, 133 million and 233 million for the full years ended December 31, 2012, 2011 and 2010 respectively.
(b) Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method.
The following table presents the weighted-average asset allocation of the fair values of total plan assets at December 31 for the years indicated, as well as the respective approved asset allocation ranges by asset class.
## Table 2 ##
(a) Debt securities primarily include cash, corporate debt, U. S.  federal, state, local and non-U.
S.  government, and mortgage-backed securities.
(b) Alternatives primarily include limited partnerships.
(c) Represents the U. S.  OPEB plan only, as the U. K.  OPEB plan is unfunded.
(d) Change in percentage of plan assets due to the contribution to the U. S.  OPEB plan.
Fair value measurement of the plans’ assets and liabilities For information on fair value measurements, including descriptions of level 1, 2, and 3 of the fair value hierarchy and the valuation methods employed by the Firm, see Note 2.
Pension and OPEB plan assets and liabilities measured at fair value
## Table 3 ##
(a) At December 31, 2017 and 2016, common/collective trust funds primarily included a mix of short-term investment funds, domestic and international equity investments (including index) and real estate funds.
(b) Unfunded commitments to purchase limited partnership investments for the plans were $605 million and $735 million for 2017 and 2016, respectively.
(c) Corporate debt securities include debt securities of U. S.  and non-U.
S.  corporations.
(d) Other consists primarily of money market funds and participating and non-participating annuity contracts.
Money market funds are primarily classified within level 1 of the fair value hierarchy given they are valued using market observable prices.
Participating and non-participating annuity contracts are classified within level 3 of the fair value hierarchy due to a lack of market mechanisms for transferring each policy and surrender restrictions.
(e) At December 31, 2017 and 2016, excludes $4.4 billion and $4.2 billion of certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient, which are not required to be classified in the fair value hierarchy, $377 million and $130 million of defined benefit pension plan receivables for investments sold and dividends and interest receivables, $561 million and $203 million of defined benefit pension plan payables for investments purchased, and $26 million and $21 million of other liabilities, respectively.
The assets of the U. S.  OPEB plan consisted of $600 million and $0 million in cash and cash equivalents classified in level 1 of the valuation hierarchy and $2.2 billion and $2.0 billion of COLI policies classified in level 3 of the valuation hierarchy at December 31, 2017 and 2016, respectively.

<table><tr><td>December 31,</td><td colspan="2">Allowance for loan losses</td><td colspan="2">Net charge-offs (recoveries) year ended</td></tr><tr><td>(in millions)</td><td> 2008</td><td>2007</td><td>2008</td><td>2007</td></tr><tr><td>Investment Bank</td><td>$3,444</td><td>$1,329</td><td>$105</td><td>$36</td></tr><tr><td>Commercial Banking</td><td>2,826</td><td>1,695</td><td>288</td><td>44</td></tr><tr><td>Treasury & Securities Services</td><td>74</td><td>18</td><td>-2</td><td>—</td></tr><tr><td>Asset Management</td><td>191</td><td>112</td><td>11</td><td>-8</td></tr><tr><td>Corporate/Private Equity</td><td>10</td><td>—</td><td>—</td><td>—</td></tr><tr><td> Total Wholesale</td><td>6,545</td><td>3,154</td><td>402</td><td>72</td></tr><tr><td>Retail Financial Services</td><td>8,918</td><td>2,668</td><td>4,877</td><td>1,350</td></tr><tr><td>Card Services</td><td>7,692</td><td>3,407</td><td>4,556</td><td>3,116</td></tr><tr><td>Corporate/Private Equity</td><td>9</td><td>5</td><td>—</td><td>—</td></tr><tr><td> Total Consumer – reported</td><td>16,619</td><td>6,080</td><td>9,433</td><td>4,466</td></tr><tr><td>Credit card – securitized</td><td>—</td><td>—</td><td>3,612</td><td>2,380</td></tr><tr><td> Total Consumer – managed</td><td>16,619</td><td>6,080</td><td>13,045</td><td>6,846</td></tr><tr><td> Total</td><td>$23,164</td><td>$9,234</td><td>$13,477</td><td>$6,918</td></tr></table>
<table><tr><td>Year ended December 31,(in millions,except per share amounts)</td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Basic earnings per share</td><td></td><td></td><td></td></tr><tr><td>Net income</td><td>$21,284</td><td>$18,976</td><td>$17,370</td></tr><tr><td>Less: Preferred stock dividends</td><td>653</td><td>629</td><td>642</td></tr><tr><td>Net income applicable to common equity</td><td>20,631</td><td>18,347</td><td>16,728</td></tr><tr><td>Less: Dividends and undistributed earnings allocated to participating securities</td><td>754</td><td>779</td><td>964</td></tr><tr><td>Net income applicable to common stockholders</td><td>$19,877</td><td>$17,568</td><td>$15,764</td></tr><tr><td>Total weighted-average basic shares outstanding</td><td>3,809.4</td><td>3,900.4</td><td>3,956.3</td></tr><tr><td>Net income per share</td><td>$5.22</td><td>$4.50</td><td>$3.98</td></tr><tr><td>Diluted earnings per share</td><td></td><td></td><td></td></tr><tr><td>Net income applicable to common stockholders</td><td>$19,877</td><td>$17,568</td><td>$15,764</td></tr><tr><td>Total weighted-average basic shares outstanding</td><td>3,809.4</td><td>3,900.4</td><td>3,956.3</td></tr><tr><td>Add: Employee stock options, SARs and warrants<sup>(a)</sup></td><td>12.8</td><td>19.9</td><td>20.6</td></tr><tr><td>Total weighted-average diluted shares outstanding<sup>(b)</sup></td><td>3,822.2</td><td>3,920.3</td><td>3,976.9</td></tr><tr><td>Net income per share</td><td>$5.20</td><td>$4.48</td><td>$3.96</td></tr></table>
<table><tr><td colspan="4">Defined benefit pension plans</td><td colspan="3">OPEB plan<sup>(c)</sup></td></tr><tr><td></td><td>Asset</td><td colspan="2">% of plan assets</td><td>Asset</td><td colspan="2">% of plan assets</td></tr><tr><td>December 31,</td><td>Allocation</td><td>2017</td><td>2016</td><td>Allocation</td><td>2017<sup>(d)</sup></td><td>2016</td></tr><tr><td colspan="2">Asset class</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Debt securities<sup>(a)</sup></td><td>0-80%</td><td>42%</td><td>35%</td><td>30-70%</td><td>61%</td><td>50%</td></tr><tr><td>Equity securities</td><td>0-85</td><td>42</td><td>47</td><td>30-70</td><td>39</td><td>50</td></tr><tr><td>Real estate</td><td>0-10</td><td>3</td><td>4</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Alternatives<sup>(b)</sup></td><td>0-35</td><td>13</td><td>14</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total</td><td>100%</td><td>100%</td><td>100%</td><td>100%</td><td>100%</td><td>100%</td></tr></table>
<table><tr><td></td><td colspan="8">Defined benefit pension plans</td></tr><tr><td></td><td colspan="4">2017</td><td colspan="4">2016</td></tr><tr><td>December 31,(in millions)</td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td>Total fair value</td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td>Total fair value</td></tr><tr><td>Cash and cash equivalents</td><td>$173</td><td>$1</td><td>$—</td><td>$174</td><td>$196</td><td>$2</td><td>$—</td><td>$198</td></tr><tr><td>Equity securities</td><td>6,407</td><td>194</td><td>2</td><td>6,603</td><td>6,158</td><td>166</td><td>2</td><td>6,326</td></tr><tr><td>Mutual funds</td><td>325</td><td>—</td><td>—</td><td>325</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Common/collective trust funds<sup>(a)</sup></td><td>778</td><td>—</td><td>—</td><td>778</td><td>384</td><td>—</td><td>—</td><td>384</td></tr><tr><td>Limited partnerships<sup>(b)</sup></td><td>60</td><td>—</td><td>—</td><td>60</td><td>62</td><td>—</td><td>—</td><td>62</td></tr><tr><td>Corporate debt securities<sup>(c)</sup></td><td>—</td><td>2,644</td><td>4</td><td>2,648</td><td>—</td><td>2,506</td><td>4</td><td>2,510</td></tr><tr><td>U.S. federal, state, local and non-U.S. government debt securities</td><td>1,096</td><td>784</td><td>—</td><td>1,880</td><td>1,139</td><td>804</td><td>—</td><td>1,943</td></tr><tr><td>Mortgage-backed securities</td><td>92</td><td>100</td><td>2</td><td>194</td><td>42</td><td>75</td><td>—</td><td>117</td></tr><tr><td>Derivative receivables</td><td>—</td><td>203</td><td>—</td><td>203</td><td>—</td><td>243</td><td>—</td><td>243</td></tr><tr><td>Other<sup>(d)</sup></td><td>2,353</td><td>60</td><td>302</td><td>2,715</td><td>1,497</td><td>53</td><td>390</td><td>1,940</td></tr><tr><td>Total assets measured at fair value<sup>(e)</sup></td><td>$11,284</td><td>$3,986</td><td>$310</td><td>$15,580</td><td>$9,478</td><td>$3,849</td><td>$396</td><td>$13,723</td></tr><tr><td>Derivative payables</td><td>$—</td><td>$-141</td><td>$—</td><td>$-141</td><td>$—</td><td>$-208</td><td>$—</td><td>$-208</td></tr><tr><td>Total liabilities measured at fair value<sup>(e)</sup></td><td>$—</td><td>$-141</td><td>$—</td><td>$-141</td><td>$—</td><td>$-208</td><td>$—</td><td>$-208</td></tr></table>

Question: In the year with largest amount of Retail Financial Services of Net charge-offs (recoveries) year ended, what's the increasing rate of Total Wholesale? (in %)
Answer: 4.58333