Unaudited pro forma condensed combined financial information reflecting the Bear Stearns merger and Washington Mutual transaction The following unaudited pro forma condensed combined financial information presents the 2008 and 2007 results of operations of the Firm as they may have appeared, if the Bear Stearns merger and the Washington Mutual transaction had been completed on January 1, 2008, and January 1, 2007.
## Table 0 ##
(a) Effective January 1, 2009, the Firm implemented FASB guidance for participating securities.
Accordingly, prior-period amounts have been revised.
For further discussion of the guidance, see Note 25 on page 232 of this Annual Report.
(b) Common equivalent shares have been excluded from the pro forma computation of diluted loss per share for the year ended December 31, 2008, as the effect would be antidilutive.
The unaudited pro forma combined financial information is presented for illustrative purposes only and does not indicate the financial results of the combined company had the companies actually been combined as of January 1, 2008, and as of January 1, 2007, nor is it indicative of the results of operations in future periods.
Included in the unaudited pro forma combined financial information for the years ended December 31, 2008 and 2007, were pro forma adjustments to reflect the results of operations of Bear Stearns and Washington Mutual’s banking operations, considering the purchase accounting, valuation and accounting conformity adjustments related to each transaction.
For the Washington Mutual transaction, the amortization of purchase accounting adjustments to report interest-earning assets acquired and interest-bearing liabilities assumed at current interest rates is reflected for the years ended December 31, 2008 and 2007.
Valuation adjustments and the adjustment to conform allowance methodologies in the Washington Mutual transaction, and valuation and accounting conformity adjustments related to the Bear Stearns merger are reflected in the results for the years ended December 31, 2008 and 2007.
Internal reorganization related to the Bear Stearns merger On June 30, 2008, JPMorgan Chase fully and unconditionally guaranteed each series of outstanding preferred stock of Bear Stearns, as well as all of Bear Stearns’ outstanding U. S.  Securities and Exchange Commission (“SEC”) registered U. S.  debt securities and obligations relating to trust preferred capital debt securities.
Subsequently, on July 15, 2008, JPMorgan Chase completed an internal merger transaction, which resulted in each series of outstanding preferred stock of Bear Stearns being automatically exchanged into newly-issued shares of JPMorgan Chase preferred stock having substantially identical terms.
Depositary shares, which formerly had represented a one-fourth interest in a share of Bear Stearns preferred stock, continue to trade on the New York Stock Exchange but following completion of this internal merger transaction, represent a one-fourth interest in a share of JPMorgan Chase preferred stock.
In addition, pursuant to internal transactions in July 2008 and the first quarter 2009, JPMorgan Chase assumed or guaranteed the remaining outstanding securities of Bear Stearns and its subsidiaries, in each case in accordance with the indentures and other agreements governing those securities.
Other business events Purchase of remaining interest in J. P.  Morgan Cazenove On January 4, 2010, JPMorgan Chase purchased the remaining interest in J. P.  Morgan Cazenove, an investment banking business partnership formed in 2005, which will result in an adjustment to the Firm’s capital surplus.
Termination of Chase Paymentech Solutions joint venture The dissolution of Chase Paymentech Solutions joint venture, a global payments and merchant acquiring joint venture between JPMorgan Chase and First Data Corporation, was completed on November 1, 2008.
JPMorgan Chase retained approximately 51% of the business, which it operates under the name Chase Paymentech Solutions.
The dissolution of the Chase Paymentech Solutions joint venture was accounted for as a step acquisition in accordance with U. S.  GAAP for business combinations, and the Firm recognized an after-tax gain of $627 million in the fourth quarter of 2008 as a result of the dissolution.
The gain represents the amount by which the fair value of the net assets acquired (predominantly intangible assets and goodwill) exceeded JPMorgan Chase’s carrying value in the net assets transferred to First
Trading assets and liabilities average balances Average trading assets and liabilities were as follows for the periods indicated.
## Table 1 ##
Note 4 – Fair value option The fair value option provides an option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments, and written loan commitments not previously carried at fair value.
Elections Elections were made by the Firm to: ?
mitigate income statement volatility caused by the differences in the measurement basis of elected instruments (for example, certain instruments elected were previously accounted for on an accrual basis) while the associated risk management arrangements are accounted for on a fair value basis; ?
eliminate the complexities of applying certain accounting models (e. g. , hedge accounting or bifurcation accounting for hybrid instruments); and ?
better reflect those instruments that are managed on a fair value basis.
Elections include: ?
Securities financing arrangements with an embedded derivative and/or a maturity of greater than one year.  ?
Loans purchased or originated as part of securitization warehousing activity, subject to bifurcation accounting, or managed on a fair value basis.  ?
Structured notes issued as part of IB’s client-driven activities.
(Structured notes are financial instruments that contain embedded derivatives. )
?
Certain tax credits and other equity investments acquired as part of the Washington Mutual transaction.
The cumulative effect on retained earnings of the adoption of the fair value option on January 1, 2007, was $199 million.
Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2009 and 2008, for loans and long-term debt for which the fair value option has been elected.
The loans were classified in trading assets – loans or in loans
## Table 2 ##
(a) Remaining contractual principal is not applicable to nonprincipal-protected notes.
Unlike principal-protected notes, for which the Firm is obligated to return a stated amount of principal at the maturity of the note, nonprincipal-protected notes do not obligate the Firm to return a stated amount of principal at maturity, but to return an amount based on the performance of an underlying variable or derivative feature embedded in the note.
(b) Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflected as the remaining contractual principal is the final principal payment at maturity.
Note 5 – Derivative instruments Derivative instruments enable end-users to modify or mitigate exposure to credit or market risks.
Counterparties to a derivative contract seek to obtain risks and rewards similar to those that could be obtained from purchasing or selling a related cash instrument without having to exchange the full purchase or sales price upfront.
JPMorgan Chase makes markets in derivatives for customers and also uses derivatives to hedge or manage risks of market exposures.
The majority of the Firm’s derivatives are entered into for market-making purposes.
Trading derivatives The Firm transacts in a variety of derivatives in its trading portfolios to meet the needs of customers (both dealers and clients) and to generate revenue through this trading activity.
The Firm makes markets in derivatives for its customers (collectively, “client derivatives”), seeking to mitigate or modify interest rate, credit, foreign exchange, equity and commodity risks.
The Firm actively manages the risks from its exposure to these derivatives by entering into other derivative transactions or by purchasing or selling other financial instruments that partially or fully offset the exposure from client derivatives.
The Firm also seeks to earn a spread between the client derivatives and offsetting positions, and from the remaining open risk positions.
Risk management derivatives The Firm manages its market exposures using various derivative instruments.
Interest rate contracts are used to minimize fluctuations in earnings that are caused by changes in interest rates.
Fixed-rate assets and liabilities appreciate or depreciate in market value as interest rates change.
Similarly, interest income and expense increase or decrease as a result of variable-rate assets and liabilities resetting to current market rates, and as a result of the repayment and subsequent origination or issuance of fixed-rate assets and liabilities at current market rates.
Gains or losses on the derivative instruments that are related to such assets and liabilities are expected to substantially offset this variability in earnings.
The Firm generally uses interest rate swaps, forwards and futures to manage the impact of interest rate fluctuations on earnings.
Foreign currency forward contracts are used to manage the foreign exchange risk associated with certain foreign currency– denominated (i. e. , non-U.
S. ) assets and liabilities and forecasted transactions, as well as the Firm’s net investments in certain nonU.
S.  subsidiaries or branches whose functional currencies are not the U. S.  dollar.
As a result of fluctuations in foreign currencies, the U. S.  dollar–equivalent values of the foreign currency–denominated assets and liabilities or forecasted revenue or expense increase or decrease.
Gains or losses on the derivative instruments related to
Credit-linked note vehicles The Firm structures transactions with credit-linked note vehicles in which the VIE purchases highly rated assets, such as asset-backed securities, and enters into a credit derivative contract with the Firm to obtain exposure to a referenced credit which the VIE otherwise does not hold.
The VIE then issues CLNs with maturities predominantly ranging from one to ten years in order to transfer the risk of the referenced credit to the VIE’s investors.
Clients and investors often prefer using a CLN vehicle since the CLNs issued by the VIE generally carry a higher credit rating than such notes would if issued directly by JPMorgan Chase.
The Firm’s exposure to the CLN vehicles is generally limited to its rights and obligations under the credit derivative contract with the VIE, as the Firm does not provide any additional contractual financial support to the VIE.
In addition, the Firm has not historically provided any financial support to the CLN vehicles over and above its contractual obligations.
Accordingly, the Firm typically does not consolidate the CLN vehicles.
As a derivative counterparty in a credit-linked note structure, the Firm has a senior claim on the collateral of the VIE and reports such derivatives on its balance sheet at fair value.
The collateral purchased by such VIEs is largely investment-grade, with a significant amount being rated “AAA.
” The Firm divides its credit-linked note structures broadly into two types: static and managed.
In a static credit-linked note structure, the CLNs and associated credit derivative contract either reference a single credit (e. g. , a multi-national corporation), or all or part of a fixed portfolio of credits.
The Firm generally buys protection from the VIE under the credit derivative.
In a managed credit-linked note structure, the CLNs and associated credit derivative generally reference all or part of an actively managed portfolio of credits.
An agreement exists between a portfolio manager and the VIE that gives the portfolio manager the ability to substitute each referenced credit in the portfolio for an alternative credit.
By participating in a structure where a portfolio manager has the ability to substitute credits within pre-agreed terms, the investors who own the CLNs seek to reduce the risk that any single credit in the portfolio will default.
The Firm does not act as portfolio manager; its involvement with the VIE is generally limited to being a derivative counterparty.
As a net buyer of credit protection, in both static and managed creditlinked note structures, the Firm pays a premium to the VIE in return for the receipt of a payment (up to the notional of the derivative) if one or more of the credits within the portfolio defaults, or if the losses resulting from the default of reference credits exceed specified levels.
Exposure to nonconsolidated credit-linked note VIEs at December 31, 2009 and 2008, was as follows.
## Table 3 ##
(a) Excluded collateral with a fair value of $1.5 billion and $2.1 billion at December 31, 2009 and 2008, respectively, which was consolidated as the Firm, in its role as secondary market maker, held a majority of the issued credit-linked notes of certain vehicles.
(b) Trading assets principally comprise notes issued by VIEs, which from time to time are held as part of the termination of a deal or to support limited market-making.
(c) On–balance sheet exposure that includes derivative receivables and trading assets.
(d) 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.
Asset Swap Vehicles The Firm also structures and executes transactions with asset swap vehicles on behalf of investors.
In such transactions, the VIE purchases a specific asset or assets and then enters into a derivative with the Firm in order to tailor the interest rate or currency risk, or both, of the assets according to investors’ requirements.
Generally, the assets are held by the VIE to maturity, and the tenor of the derivatives would match the maturity of the assets.
Investors typically invest in the notes issued by such VIEs in order to obtain exposure to the credit risk of the specific assets, as well as exposure to foreign exchange and interest rate risk that is tailored to their specific needs.
The derivative transaction between the Firm and the VIE may include currency swaps to hedge assets held by the VIE denominated in foreign currency into the investors’ home or investment currency or interest rate swaps to hedge the interest rate risk of assets held by the VIE; to add additional interest rate exposure into the VIE in order to increase the return on the issued notes; or to convert an interest-bearing asset into a zero-coupon bond.
The Firm’s exposure to the asset swap vehicles is generally limited to its rights and obligations under the interest rate and/or foreign exchange derivative contracts, as the Firm does not provide any contractual financial support to the VIE.
In addition, the Firm historically has not provided any financial support to the asset swap vehicles over and above its contractual obligations.
Accordingly, the Firm typically does not consolidate the asset swap vehicles.
As a derivative counterparty, the Firm has a senior claim on the collateral of the VIE and reports such derivatives on its balance sheet at fair value.
Substantially all of the assets purchased by such VIEs are investment-grade.

Tables referenced above, in order (Table 0 first):
<table><tr><td>(in millions, except per share data)</td><td>2008</td><td>2007</td></tr><tr><td> Total net revenue</td><td>$68,149</td><td>$92,052</td></tr><tr><td> Income/(loss) before extraordinary gain</td><td>-14,090</td><td>17,733</td></tr><tr><td> Net income/(loss)</td><td>-12,184</td><td>17,733</td></tr><tr><td> Net income per common share data:</td><td></td><td></td></tr><tr><td> Basicearnings per share<sup>(a)</sup></td><td></td><td></td></tr><tr><td>Income/(loss) before extraordinary gain</td><td>$-4.26</td><td>$5.02</td></tr><tr><td>Net income/(loss)</td><td>-3.72</td><td>5.02</td></tr><tr><td> Diluted earnings per share<sup>(a)(b)</sup></td><td></td><td></td></tr><tr><td>Income/(loss) before extraordinary gain</td><td>-4.26</td><td>4.96</td></tr><tr><td>Net income/(loss)</td><td>-3.72</td><td>4.96</td></tr><tr><td> Average common shares issued and outstanding</td><td></td><td></td></tr><tr><td>Basic</td><td>3,510.5</td><td>3,429.6</td></tr><tr><td>Diluted</td><td>3,510.5</td><td>3,471.3</td></tr></table>
<table><tr><td>Year ended December 31, (in millions)</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Trading assets – debt and equity instruments</td><td>$318,063</td><td>$384,102</td><td>$381,415</td></tr><tr><td>Trading assets – derivative receivables</td><td>110,457</td><td>121,417</td><td>65,439</td></tr><tr><td>Trading liabilities – debt and equityinstruments<sup>(a)</sup></td><td>$60,224</td><td>$78,841</td><td>$94,737</td></tr><tr><td>Trading liabilities – derivative payables</td><td>77,901</td><td>93,200</td><td>65,198</td></tr></table>
<table><tr><td></td><td colspan="4">2009</td><td colspan="4">2008</td></tr><tr><td>December 31, (in millions)</td><td>Contractual principal outstanding</td><td></td><td>Fair value</td><td>Fair value over/(under) contractual principal outstanding</td><td>Contractual principal outstanding</td><td></td><td>Fair value</td><td>Fair value over/(under) contractual principal outstanding</td></tr><tr><td> Loans</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Performing loans 90 days or more past due</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Loans reported as trading assets</td><td>$—</td><td></td><td>$—</td><td>$—</td><td>$—</td><td></td><td>$—</td><td>$—</td></tr><tr><td>Loans</td><td>—</td><td></td><td>—</td><td>—</td><td>—</td><td></td><td>—</td><td>—</td></tr><tr><td>Nonaccrual loans</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Loans reported as trading assets</td><td>7,264</td><td></td><td>2,207</td><td>-5,057</td><td>5,156</td><td></td><td>1,460</td><td>-3,696</td></tr><tr><td>Loans</td><td>1,126</td><td></td><td>151</td><td>-975</td><td>189</td><td></td><td>51</td><td>-138</td></tr><tr><td> Subtotal</td><td>8,390</td><td></td><td>2,358</td><td>-6,032</td><td>5,345</td><td></td><td>1,511</td><td>-3,834</td></tr><tr><td>All other performing loans</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Loans reported as trading assets</td><td>35,095</td><td></td><td>29,341</td><td>-5,754</td><td>36,336</td><td></td><td>30,342</td><td>-5,994</td></tr><tr><td>Loans</td><td>2,147</td><td></td><td>1,000</td><td>-1,147</td><td>10,206</td><td></td><td>7,441</td><td>-2,765</td></tr><tr><td> Total loans</td><td>$45,632</td><td></td><td>$32,699</td><td>$-12,933</td><td>$51,887</td><td></td><td>$39,294</td><td>$-12,593</td></tr><tr><td> Long-term debt</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Principal protected debt</td><td>$26,765</td><td><sup>(b)</sup></td><td>$26,378</td><td>$-387</td><td>$27,043</td><td><sup>(b)</sup></td><td>$26,241</td><td>$-802</td></tr><tr><td>Nonprincipal protected debt<sup>(a)</sup></td><td> NA</td><td></td><td>22,594</td><td>NA</td><td>NA</td><td></td><td>31,973</td><td>NA</td></tr><tr><td> Total long-term debt</td><td> NA</td><td></td><td>48,972</td><td>NA</td><td>NA</td><td></td><td>58,214</td><td>NA</td></tr><tr><td> Long-term beneficial interests</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Principal protected debt</td><td>$90</td><td></td><td>$90</td><td>$—</td><td>$—</td><td></td><td>$—</td><td>$—</td></tr><tr><td>Nonprincipal protected debt<sup>(a)</sup></td><td> NA</td><td></td><td>1,320</td><td>NA</td><td>NA</td><td></td><td>1,735</td><td>NA</td></tr><tr><td> Total long-term beneficial interests</td><td> NA</td><td></td><td>$1,410</td><td>NA</td><td>NA</td><td></td><td>$1,735</td><td>NA</td></tr></table>
<table><tr><td></td><td colspan="4"> 2009</td><td colspan="4">2008</td></tr><tr><td>December 31,</td><td rowspan="2">Derivative receivables</td><td rowspan="2">Trading assets<sup>(b)</sup></td><td rowspan="2">Total exposure<sup>(c)</sup></td><td rowspan="2">Par value of collateral held by VIEs<sup>(d)</sup></td><td rowspan="2">Derivative receivables</td><td rowspan="2">Trading assets<sup>(b)</sup></td><td rowspan="2">Total exposure<sup>(c)</sup></td><td rowspan="2">Par value of collateral held by VIEs<sup>(d)</sup></td></tr><tr><td>(in billions)</td></tr><tr><td>Credit-linked notes<sup>(a)</sup></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Static structure</td><td>$1.9</td><td>$0.7</td><td>$2.6</td><td>$10.8</td><td>$3.6</td><td>$0.7</td><td>$4.3</td><td>$14.5</td></tr><tr><td>Managed structure</td><td>5.0</td><td>0.6</td><td>5.6</td><td>15.2</td><td>7.7</td><td>0.3</td><td>8.0</td><td>16.6</td></tr><tr><td> Total</td><td>$6.9</td><td>$1.3</td><td>$8.2</td><td>$26.0</td><td>$11.3</td><td>$1.0</td><td>$12.3</td><td>$31.1</td></tr></table>

Question: In the year with largest amount of Basic for Average common shares issued and outstanding, what's the sum of Credit-linked notes(a) forTotal exposure(c)? (in billion)
Answer: 12.3
Reasoning program: add(4.3,8.0)