What is the main reason for this 8-K filing?

This 8-K is being filed to update and revise previously reported financial information, primarily to reflect the reclassification of certain corporate trust business assets as discontinued operations and to update business segment reporting according to new accounting standards (SFAS 144 and SFAS 131).

Does this change impact JPMorgan Chase's reported profits or financial health?

No, the company explicitly states that these revisions to discontinued operations and business segment reporting do not affect previously reported net income, earnings per share, total assets, or regulatory capital for any of the reported periods.

What specific business was reclassified as discontinued operations?

Portions of JPMorgan Chase's corporate trust business have been classified as discontinued operations. This action is related to an agreement where these assets are being exchanged with The Bank of New York for certain of its consumer, small-business, and middle-market banking businesses.

Why were the business segments changed?

The business segments were revised to more closely align with how the company's business segments are managed internally and to provide improved comparability with competitors, in accordance with SFAS 131. This includes retroactive adjustments for 'client transfers' between wholesale banking segments starting January 1, 2005.

JPMORGAN CHASE & CO 8-K SEC Disclosure

Summary

JPMorgan Chase & Co. (JPM) filed an 8-K on September 18, 2006, to update certain financial information previously reported in its 2005 Annual Report (10-K/A) and its March 2006 Quarterly Report (10-Q/A). The primary purpose of this filing is to revise financial statements to reflect the reclassification of portions of its corporate trust business as discontinued operations, in accordance with SFAS 144. This change stems from an agreement to exchange these corporate trust assets with The Bank of New York for its consumer, small-business, and middle-market banking businesses. Additionally, the filing details revisions to business segment reporting, aligning with SFAS 131 to better reflect how the company is managed and to enhance comparability with peers. These segment changes, including "client transfers" between the Investment Bank, Commercial Banking, and Treasury & Securities Services, are made retroactive to January 1, 2005. Importantly, JPMorgan Chase states that these revisions do not impact previously reported net income, earnings per share, total assets, or regulatory capital.

Key Highlights

1Reclassification of certain corporate trust business assets as "discontinued operations" following an asset exchange agreement with The Bank of New York.
2Updates align financial reporting with SFAS 144 (Discontinued Operations) and SFAS 131 (Business Segments).
3Business segment reporting has been revised to reflect current management structure and improve competitor comparability.
4"Client transfers" between wholesale banking segments (Commercial Banking, Investment Bank, Treasury & Securities Services) are now retroactive to January 1, 2005.
5The company explicitly states that these revisions do not affect previously reported net income, EPS, total assets, or regulatory capital.
6This 8-K filing incorporates revised financial information into exhibits (99.1 and 99.2) that supersede prior disclosures in the 2005 10-K/A and March 2006 10-Q/A.
7The filing includes updated consents from independent registered public accounting firms and revised financial statements and management discussions.

JPMORGAN CHASE & CO 8-K Report, Corporate Update (Sep 18, 2006)

Summary

Key Highlights

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