Summary of changes in the allowance for credit losses
## Table 0 ##
(a) Reflects the effect of the adoption of SFAS 159 at January 1, 2007.
For a further discussion of SFAS 159, see Note 5 on pages 156–158 of this Annual Report.
(b) Related to the Washington Mutual transaction in 2008.
(c) Primarily related to the transfer of loans and lending-related commitments from RFS to CB during the first quarter of 2008.
(d) Wholesale loans held-for-sale and loans at fair value were $14.0 billion and $23.6 billion at December 31, 2008 and 2007, respectively.
These amounts were excluded when calculating the allowance coverage ratios.
(e) Consumer loans held-for-sale were $2.0 billion and $4.0 billion at December 31, 2008 and 2007, respectively.
These amounts were excluded when calculating the allowance coverage ratios.
(f) Average wholesale loans held-for-sale and loans at fair value were $18.9 billion and $18.6 billion for the years ended December 31, 2008 and 2007, respectively.
These amounts were excluded when calculating the net charge-off rates.
(g) Average consumer (excluding card) loans held-for-sale and loans at fair value were $2.8 billion and $10.6 billion for the years ended December 31, 2008 and 2007, respectively.
These amounts were excluded when calculating the net charge-off rates.
(h) Includes $88.8 billion of home lending credit-impaired loans acquired in the Washington Mutual transaction and accounted for under SOP 03-3 at December 31, 2008.
These loans were accounted for at fair value on the acquisition date, which reflected expected cash flows (including credit losses) over the remaining life of the portfolio.
No allowance for loan losses has been recorded for these loans as of December 31, 2008.
(i) Partially related to the transfer of allowance between wholesale and consumer in conjunction with prime mortgages transferred to the Corporate/Private Equity sector.
Goodwill and other intangible assets consist of the following.
## Table 1 ##
Goodwill The $2.8 billion increase in goodwill from the prior year primarily resulted from the dissolution of the Chase Paymentech Solutions joint venture, the merger with Bear Stearns, the purchase of an additional equity interest in Highbridge and the tax-related purchase accounting adjustments associated with the Bank One merger, which increased goodwill attributed to IB.
The decrease in goodwill attributed to TSS predominantly resulted from the sale of a previously consolidated subsidiary.
For additional information see Note 2 on pages 135–140 of this Annual Report.
Goodwill was not impaired at December 31, 2008, or 2007, nor was any goodwill written off due to impairment during 2008 and 2007.
Goodwill attributed to the business segments was as follows.
## Table 2 ##
Mortgage servicing rights JPMorgan Chase recognizes as intangible assets mortgage servicing rights, which represent the right to perform specified mortgage servicing activities (predominantly with respect to residential mortgages) for others.
MSRs are either purchased from third parties or retained upon sale or securitization of mortgage loans.
Servicing activities include collecting principal, interest, and escrow payments from borrowers; making tax and insurance payments on behalf of borrowers; monitoring delinquencies and executing foreclosure proceedings; and accounting for and remitting principal and interest payments to the investors of the mortgage-backed securities.
As permitted by SFAS 156, the Firm elected to fair value MSRs as one class of servicing assets.
The Firm defined MSRs as one class based on the availability of market inputs to measure MSR fair value and its treatment of MSRs as one aggregate pool for risk management purposes.
The Firm initially capitalizes MSRs based on the estimated fair value at the time of initial recognition.
The Firm estimates the fair value of MSRs for initial capitalization and ongoing valuation using an option-adjusted spread model, which projects MSR cash flows over multiple interest rate scenarios in conjunction with the Firm’s proprietary prepayment model and then discounts these cash flows at riskadjusted rates.
The model considers portfolio characteristics, contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges, other ancillary revenue and costs to service, and other economic factors.
The Firm reassesses and periodically adjusts the underlying inputs and assumptions used in the OAS model to reflect market conditions and assumptions that a market participant would consider in valuing the MSR asset.
During 2007 and 2008, the Firm continued to refine its proprietary payment model based upon a number of market-related factors, including a downward trend in home prices, general tightening of credit underwriting standards and the associated impact on refinancing activity.
The Firm compares fair value estimates and assumptions to observable market data where available and to recent market activity and actual portfolio experience.
The fair value of MSRs is sensitive to changes in interest rates, including their effect on prepayment speeds.
JPMorgan Chase uses or has used combinations of derivatives and trading instruments to manage changes in the fair value of MSRs.
The intent is to offset any changes in the fair value of MSRs with changes in the fair value of the related risk management instruments.
MSRs decrease in value when interest rates decline.
Conversely, securities (such as mortgagebacked securities), principal-only certificates and certain derivatives (when the Firm receives fixed-rate interest payments) increase in value when interest rates decline.
Management’s discussion and analysis 84 JPMorgan Chase & Co.  / 2008 Annual Report Tier 1 capital was $136.1 billion at December 31, 2008, compared with $88.7 billion at December 31, 2007, an increase of $47.4 billion.
The following table presents the changes in Tier 1 capital for the year ended December 31, 2008.

<table><tr><td>Year ended December 31,</td><td colspan="3">2008</td><td colspan="3">2007</td></tr><tr><td>(in millions)</td><td>Wholesale</td><td>Consumer</td><td>Total</td><td>Wholesale</td><td>Consumer</td><td>Total</td></tr><tr><td> Loans:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Beginning balance at January 1,</td><td>$3,154</td><td>$6,080</td><td>$9,234</td><td>$2,711</td><td>$4,568</td><td>$7,279</td></tr><tr><td>Cumulative effect of change inaccounting principles<sup>(a)</sup></td><td>—</td><td>—</td><td>—</td><td>-56</td><td>—</td><td>-56</td></tr><tr><td>Beginning balance at January 1, adjusted</td><td>3,154</td><td>6,080</td><td>9,234</td><td>2,655</td><td>4,568</td><td>7,223</td></tr><tr><td>Gross charge-offs</td><td>521</td><td>10,243</td><td>10,764</td><td>185</td><td>5,182</td><td>5,367</td></tr><tr><td>Gross recoveries</td><td>-119</td><td>-810</td><td>-929</td><td>-113</td><td>-716</td><td>-829</td></tr><tr><td> Net charge-offs</td><td>402</td><td>9,433</td><td>9,835</td><td>72</td><td>4,466</td><td>4,538</td></tr><tr><td>Provision for loan losses:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Provision excluding accounting conformity</td><td>2,895</td><td>16,765</td><td>19,660</td><td>598</td><td>5,940</td><td>6,538</td></tr><tr><td>Accounting conformity<sup>(b)</sup></td><td>641</td><td>936</td><td>1,577</td><td>—</td><td>—</td><td>—</td></tr><tr><td> Total provision for loan losses</td><td>3,536</td><td>17,701</td><td>21,237</td><td>598</td><td>5,940</td><td>6,538</td></tr><tr><td>Acquired allowance resulting fromWashington Mutualtransaction</td><td>229</td><td>2,306</td><td>2,535</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Other</td><td>28(c)</td><td>-35 (c)</td><td>-7</td><td>-27 (i)</td><td>38(i)</td><td>11</td></tr><tr><td> Ending balance at December 31</td><td>$6,545</td><td>$16,619</td><td>$23,164</td><td>$3,154</td><td>$6,080</td><td>$9,234</td></tr><tr><td>Components:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Asset-specific</td><td>$712</td><td>$74</td><td>$786</td><td>$108</td><td>$80</td><td>$188</td></tr><tr><td>Formula-based</td><td>5,833</td><td>16,545</td><td>22,378</td><td>3,046</td><td>6,000</td><td>9,046</td></tr><tr><td> Total allowance for loan losses</td><td>$6,545</td><td>$16,619</td><td>$23,164</td><td>$3,154</td><td>$6,080</td><td>$9,234</td></tr><tr><td> Lending-related commitments:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Beginning balance at January 1,</td><td>$835</td><td>$15</td><td>$850</td><td>$499</td><td>$25</td><td>$524</td></tr><tr><td>Provision for lending-related commitments</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Provision excluding accounting conformity</td><td>-214</td><td>-1</td><td>-215</td><td>336</td><td>-10</td><td>326</td></tr><tr><td>Accounting conformity<sup>(b)</sup></td><td>5</td><td>-48</td><td>-43</td><td>—</td><td>—</td><td>—</td></tr><tr><td> Total provision for lending-relatedcommitments</td><td>-209</td><td>-49</td><td>-258</td><td>336</td><td>-10</td><td>326</td></tr><tr><td>Acquired allowance resulting fromWashington Mutualtransaction</td><td>—</td><td>66</td><td>66</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Other</td><td>8(c)</td><td>-7(c)</td><td>1</td><td>—</td><td>—</td><td>—</td></tr><tr><td> Ending balance at December 31</td><td>$634</td><td>$25</td><td>$659</td><td>$835</td><td>$15</td><td>$850</td></tr><tr><td>Components:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Asset-specific</td><td>$29</td><td>$—</td><td>$29</td><td>$28</td><td>$—</td><td>$28</td></tr><tr><td>Formula-based</td><td>605</td><td>25</td><td>630</td><td>807</td><td>15</td><td>822</td></tr><tr><td> Total allowance forlending-related commitments</td><td>$634</td><td>$25</td><td>$659</td><td>$835</td><td>$15</td><td>$850</td></tr><tr><td> Total allowance for credit losses</td><td>$7,179</td><td>$16,644</td><td>$23,823</td><td>$3,989</td><td>$6,095</td><td>$10,084</td></tr><tr><td> Allowance for loan losses to loans</td><td>2.64% (d)</td><td>3.46% (e)(h)</td><td>3.18% (d)(e)(h)</td><td>1.67% (d)</td><td>2.01% (e)</td><td>1.88% (d)(e)</td></tr><tr><td> Allowance for loan losses to loansexcludingpurchased credit-impaired loans</td><td>2.64(d)</td><td>4.24(e)</td><td>3.62(d)(e)</td><td>1.67(d)</td><td>2.01(e)</td><td>1.88(d)(e)</td></tr><tr><td> Net charge-off rates</td><td>0.18(f)</td><td>2.71(g)(h)</td><td>1.73(f)(g)(h)</td><td>0.04(f)</td><td>1.61(g)</td><td>1.00(f)(g)</td></tr><tr><td> Net charge-off rates excluding purchasedcredit-impaired loans</td><td>0.18(f)</td><td>2.90(g)</td><td>1.81(f)(g)</td><td>0.04(f)</td><td>1.61(g)</td><td>1.00(f)(g)</td></tr></table>
<table><tr><td>December 31, (in millions)</td><td> 2008</td><td>2007</td></tr><tr><td>Goodwill</td><td>$48,027</td><td>$45,270</td></tr><tr><td>Mortgage servicing rights</td><td>9,403</td><td>8,632</td></tr><tr><td>Purchased credit card relationships</td><td>1,649</td><td>2,303</td></tr><tr><td>All other intangibles:</td><td></td><td></td></tr><tr><td>Other creditcard–related intangibles</td><td>$743</td><td>$346</td></tr><tr><td>Core deposit intangibles</td><td>1,597</td><td>2,067</td></tr><tr><td>Other intangibles</td><td>1,592</td><td>1,383</td></tr><tr><td> Total all other intangible assets</td><td>$3,932</td><td>$3,796</td></tr></table>
<table><tr><td>December 31, (in millions)</td><td> 2008</td><td>2007</td></tr><tr><td>Investment Bank</td><td>$4,765</td><td>$3,578</td></tr><tr><td>Retail Financial Services</td><td>16,840</td><td>16,848</td></tr><tr><td>Card Services</td><td>13,977</td><td>12,810</td></tr><tr><td>Commercial Banking</td><td>2,870</td><td>2,873</td></tr><tr><td>Treasury & Securities Services</td><td>1,633</td><td>1,660</td></tr><tr><td>Asset Management</td><td>7,565</td><td>7,124</td></tr><tr><td>Corporate/Private Equity</td><td>377</td><td>377</td></tr><tr><td> Total goodwill</td><td>$48,027</td><td>$45,270</td></tr></table>

Question: What was the average of the Net charge-offs in the years where Gross charge-offs is positive? (in million)
Answer: 4791