Notes to consolidated financial statements JPMorgan Chase & Co. /2009 Annual Report 204 on the amount of interest income recognized in the Firm’s Consolidated Statements of Income since that date.
(b) Other changes in expected cash flows include the net impact of changes in estimated prepayments and reclassifications to the nonaccretable difference.
On a quarterly basis, the Firm updates the amount of loan principal and interest cash flows expected to be collected, incorporating assumptions regarding default rates, loss severities, the amounts and timing of prepayments and other factors that are reflective of current market conditions.
Probable decreases in expected loan principal cash flows trigger the recognition of impairment, which is then measured as the present value of the expected principal loss plus any related foregone interest cash flows discounted at the pool’s effective interest rate.
Impairments that occur after the acquisition date are recognized through the provision and allowance for loan losses.
Probable and significant increases in expected principal cash flows would first reverse any previously recorded allowance for loan losses; any remaining increases are recognized prospectively as interest income.
The impacts of (i) prepayments, (ii) changes in variable interest rates, and (iii) any other changes in the timing of expected cash flows are recognized prospectively as adjustments to interest income.
Disposals of loans, which may include sales of loans, receipt of payments in full by the borrower, or foreclosure, result in removal of the loan from the purchased credit-impaired portfolio.
If the timing and/or amounts of expected cash flows on these purchased credit-impaired loans were determined not to be reasonably estimable, no interest would be accreted and the loans would be reported as nonperforming loans; however, since the timing and amounts of expected cash flows for these purchased credit-impaired loans are reasonably estimable, interest is being accreted and the loans are being reported as performing loans.
Charge-offs are not recorded on purchased credit-impaired loans until actual losses exceed the estimated losses that were recorded as purchase accounting adjustments at acquisition date.
To date, no charge-offs have been recorded for these loans.
Purchased credit-impaired loans acquired in the Washington Mutual transaction are reported in loans on the Firm’s Consolidated Balance Sheets.
In 2009, an allowance for loan losses of $1.6 billion was recorded for the prime mortgage and option ARM pools of loans.
The net aggregate carrying amount of the pools that have an allowance for loan losses was $47.2 billion at December 31, 2009.
This allowance for loan losses is reported as a reduction of the carrying amount of the loans in the table below.
The table below provides additional information about these purchased credit-impaired consumer loans.
## Table 0 ##
(a) Represents the sum of contractual principal, interest and fees earned at the reporting date.
Purchased credit-impaired loans are also being modified under the MHA programs and the Firm’s other loss mitigation programs.
For these loans, the impact of the modification is incorporated into the Firm’s quarterly assessment of whether a probable and/or significant change in estimated future cash flows has occurred, and the loans continue to be accounted for as and reported as purchased credit-impaired loans.
Foreclosed property The Firm acquires property from borrowers through loan restructurings, workouts, and foreclosures, which is recorded in other assets on the Consolidated Balance Sheets.
Property acquired may include real property (e. g. , land, buildings, and fixtures) and commercial and personal property (e. g. , aircraft, railcars, and ships).
Acquired property is valued at fair value less costs to sell at acquisition.
Each quarter the fair value of the acquired property is reviewed and adjusted, if necessary.
Any adjustments to fair value in the first 90 days are charged to the allowance for loan losses and thereafter adjustments are charged/credited to noninterest revenue–other.
Operating expense, such as real estate taxes and maintenance, are charged to other expense.
Note 14 – Allowance for credit losses The allowance for loan losses includes an asset-specific component, a formula-based component and a component related to purchased credit-impaired loans.
The asset-specific component relates to loans considered to be impaired, which includes any loans that have been modified in a troubled debt restructuring as well as risk-rated loans that have been placed on nonaccrual status.
An asset-specific allowance for impaired loans is established when the loan’s discounted cash flows (or, when available, the loan’s observable market price) is lower than the recorded investment in the loan.
To compute the asset-specific component of the allowance, larger loans are evaluated individually, while smaller loans are evaluated as pools using historical loss experience for the respective class of assets.
Risk-rated loans (primarily wholesale loans) are pooled by risk rating, while scored loans (i. e. , consumer loans) are pooled by product type.
The Firm generally measures the asset-specific allowance as the difference between the recorded investment in the loan and the present value of the cash flows expected to be collected, discounted at the loan’s original effective interest rate.
Subsequent changes in measured impairment due to the impact of discounting are reported as an adjustment to the provision for loan losses, not as an adjustment to interest income.
An asset-specific allowance for an impaired loan with an observable market price is measured as the difference between the recorded investment in the loan and the loan’s fair value.
Certain impaired loans that are determined to be collateraldependent are charged-off to the fair value of the collateral less costs to sell.
When collateral-dependent commercial real-estate loans are determined to be impaired, updated appraisals are typically obtained and updated every six to twelve months.
The Firm also considers both borrower- and market-specific factors, which
Note 26 – Accumulated other comprehensive income/(loss) Accumulated other comprehensive income/(loss) includes the after-tax change in unrealized gains/(losses) on AFS securities, foreign currency translation adjustments (including the impact of related derivatives), cash flow hedging activities and net loss and prior service cost/(credit) related to the Firm’s defined benefit pension and OPEB plans
## Table 1 ##
(a) Represents the after-tax difference between the fair value and amortized cost of the AFS securities portfolio and retained interests in securitizations recorded in other assets.
(b) The net change during 2007 was due primarily to a decline in interest rates.
(c) The net change during 2008 was due primarily to spread widening related to credit card asset-backed securities, nonagency mortgage-backed securities and collateralized loan obligations.
(d) The net change during 2009 was due primarily to overall market spread and market liquidity improvement as well as changes in the composition of investments.
(e) Includes after-tax unrealized losses of $(226) million not related to credit on debt securities for which credit losses have been recognized in income.
The following table presents the before- and after-tax changes in net unrealized gains/(losses); and reclassification adjustments for realized (gains)/losses on AFS securities and cash flow hedges; changes resulting from foreign currency translation adjustments (including the impact of related derivatives); net gains/(losses) and prior service costs/(credits) from pension and OPEB plans; and amortization of pension and OPEB amounts into net income.
Reclassification adjustments include amounts recognized in net income that had been recorded previously in other comprehensive income/(loss).
## Table 2 ##
imply an increase to modeled annual loss estimates of approximately $100 million.  ?
A 50 basis point deterioration in forecasted credit card loss rates could imply an increase to modeled annualized credit card loan loss estimates of approximately $600 million.  ?
A one-notch downgrade in the Firm’s internal risk ratings for its entire wholesale loan portfolio could imply an increase in the Firm’s modeled loss estimates of approximately $1.8 billion.  ?
A 100 basis point increase in estimated loss given default for the Firm’s entire wholesale loan portfolio could imply an increase in the Firm’s modeled loss estimates of approximately $140 million.
The purpose of these sensitivity analyses is to provide an indication of the isolated impacts of hypothetical alternative assumptions on modeled loss estimates.
The changes in the inputs presented above are not intended to imply management’s expectation of future deterioration of those risk factors.
In addition, these analyses are not intended to estimate changes in the overall allowance for loan losses, which would also be influenced by the judgment management applies to the modeled loss estimates to reflect the uncertainty and imprecision of these modeled loss estimates based on then current circumstances and conditions.
It is difficult to estimate how potential changes in specific factors might affect the overall allowance for credit losses because management considers a variety of factors and inputs in estimating the allowance for credit losses.
Changes in these factors and inputs may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors may be directionally inconsistent, such that improvement in one factor may offset deterioration in other factors.
In addition, it is difficult to predict how changes in specific economic conditions or assumptions could affect borrower behavior or other factors considered by management in estimating the allowance for credit losses.
Given the process the Firm follows and the judgments made in evaluating the risk factors related to its loans and credit card loss estimates, management believes that its current estimate of the allowance for credit loss is appropriate.
Fair value of financial instruments, MSRs and commodities inventory JPMorgan Chase carries a portion of its assets and liabilities at fair value.
The majority of such assets and liabilities are measured at fair value on a recurring basis.
Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral.
Assets measured at fair value The following table includes the Firm’s assets measured at fair value and the portion of such assets that are classified within level 3 of the valuation hierarchy.
For further information, see Note 3.

Tables referenced above, in order (Table 0 first):
<table><tr><td>December 31, (in millions)</td><td>2009</td><td>2008</td></tr><tr><td>Outstanding balance<sup>(a)</sup></td><td>$103,369</td><td>$118,180</td></tr><tr><td>Carrying amount</td><td>79,664</td><td>88,813</td></tr></table>
<table><tr><td>(in millions)</td><td>Unrealized gains/(losses) on AFS securities<sup>(a)</sup></td><td>Translation adjustments, net of hedges</td><td>Cash flow hedges</td><td>Net loss and prior service costs/(credit) of defined benefit pension and OPEB plans</td><td>Accumulated other comprehensive income/(loss)</td></tr><tr><td>Balance at December 31, 2006</td><td>$29</td><td>$5</td><td>$-489</td><td>$-1,102</td><td>$-1,557</td></tr><tr><td>Cumulative effect of changes inaccounting principles (for fairvalueoption elections)</td><td>-1</td><td>—</td><td>—</td><td>—</td><td>-1</td></tr><tr><td>Balance at January 1, 2007, adjusted</td><td>28</td><td>5</td><td>-489</td><td>-1,102</td><td>-1,558</td></tr><tr><td>Net change</td><td>352(b)</td><td>3</td><td>-313</td><td>599</td><td>641</td></tr><tr><td>Balance at December 31, 2007</td><td>380</td><td>8</td><td>-802</td><td>-503</td><td>-917</td></tr><tr><td>Net change</td><td>-2,481 (c)</td><td>-606</td><td>600</td><td>-2,283</td><td>-4,770</td></tr><tr><td>Balance at December 31, 2008</td><td>-2,101</td><td>-598</td><td>-202</td><td>-2,786</td><td>-5,687</td></tr><tr><td> Net change</td><td>4,133(d)</td><td>582</td><td>383</td><td>498</td><td>5,596</td></tr><tr><td> Balance at December 31, 2009</td><td>$2,032(e)</td><td>$-16</td><td>$181</td><td>$-2,288</td><td>$-91</td></tr></table>
<table><tr><td></td><td colspan="3"> 2009</td><td colspan="3">2008</td><td colspan="3">2007</td></tr><tr><td>Year ended December 31, (in millions)</td><td>Before tax</td><td>Tax effect</td><td>After tax</td><td>Before tax</td><td>Tax effect</td><td>After tax</td><td>Before tax</td><td>Tax effect</td><td>After tax</td></tr><tr><td> Unrealized gains/(losses) on AFS securities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net unrealized gains/(losses) arisingduring the period</td><td>$7,870</td><td>$-3,029</td><td>$4,841</td><td>$-3,071</td><td>$1,171</td><td>$-1,900</td><td>$759</td><td>$-310</td><td>$449</td></tr><tr><td>Reclassification adjustment for realized(gains)/losses included in net income</td><td>-1,152</td><td>444</td><td>-708</td><td>-965</td><td>384</td><td>-581</td><td>-164</td><td>67</td><td>-97</td></tr><tr><td>Net change</td><td>6,718</td><td>-2,585</td><td>4,133</td><td>-4,036</td><td>1,555</td><td>-2,481</td><td>595</td><td>-243</td><td>352</td></tr><tr><td> Translation adjustments:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Translation</td><td>1,139</td><td>-398</td><td>741</td><td>-1,781</td><td>682</td><td>-1,099</td><td>754</td><td>-281</td><td>473</td></tr><tr><td>Hedges</td><td>-259</td><td>100</td><td>-159</td><td>820</td><td>-327</td><td>493</td><td>-780</td><td>310</td><td>-470</td></tr><tr><td>Net change</td><td>880</td><td>-298</td><td>582</td><td>-961</td><td>355</td><td>-606</td><td>-26</td><td>29</td><td>3</td></tr><tr><td> Cash flow hedges:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net unrealized gains/(losses) arisingduring the period</td><td>767</td><td>-308</td><td>459</td><td>584</td><td>-226</td><td>358</td><td>-737</td><td>294</td><td>-443</td></tr><tr><td>Reclassification adjustment for realized(gains)/lossesincluded in net income</td><td>-124</td><td>48</td><td>-76</td><td>402</td><td>-160</td><td>242</td><td>217</td><td>-87</td><td>130</td></tr><tr><td>Net change</td><td>643</td><td>-260</td><td>383</td><td>986</td><td>-386</td><td>600</td><td>-520</td><td>207</td><td>-313</td></tr><tr><td> Net loss and prior service cost/(credit) ofdefined benefit pension and OPEB plans:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net gains/(losses) and prior servicecredits arising during the period</td><td>494</td><td>-200</td><td>294</td><td>-3,579</td><td>1,289</td><td>-2,290</td><td>934</td><td>-372</td><td>562</td></tr><tr><td>Reclassification adjustment for net lossand priorservice credits included in net income</td><td>337</td><td>-133</td><td>204</td><td>14</td><td>-7</td><td>7</td><td>59</td><td>-22</td><td>37</td></tr><tr><td>Net change</td><td>831</td><td>-333</td><td>498</td><td>-3,565</td><td>1,282</td><td>-2,283</td><td>993</td><td>-394</td><td>599</td></tr><tr><td> Total Other comprehensive income/(loss)</td><td>$9,072</td><td>$-3,476</td><td>$5,596</td><td>$-7,576</td><td>$2,806</td><td>$-4,770</td><td>$1,042</td><td>$-401</td><td>$641</td></tr></table>

Question: for 2009 , what is the average reserve percentage for the prime mortgage and option arm pools of loans?\\n\\n
Answer: 0.0339
Reasoning program: divide(1.6,47.2)