Key questions and answers from the first quarter earnings call conducted by JP Morgan Chase & Co. on April 16, 2008.

Guy Moszkowski (Merrill Lynch): On Bear Stearns, are you still comfortable with the idea of around $1 billion of earnings run rate there?

James Dimon: Yes, we are still happy with that.

Guy Moszkowski (Merrill Lynch): What have been the biggest surprises and biggest disappointments,as you look through the businesses and the risk management there?

James Dimon: Initially, when we did the transaction, we really worried much more about the downside than the upside. And now we are getting to meet the people and see all the other possibilities there. So there are very few real negatives in addition to the things we worried about before, and the positives are across most of the businesses.

Guy Moszkowski (Merrill Lynch): Are you going to run prime brokerage as a joint venture between the Investment Bank and TSS?

James Dimon: Right now it's going to stay in investment banking in the Equities business.

Guy Moszkowski (Merrill Lynch): Are you seeing anything that would give you some signs of stabilization of the loss and delinquency rates in the home equity portfolio?

James Dimon: No. It is exactly what we saw, more houses are going negative equity, roll rates are high, home prices we expect to still go down. We have not seen it.

Glenn Schorr (UBS): On home equities, have you had any success in reducing the nondraw lines, and can you remind us how big they are right now?

Michael J. Cavanagh: There has not been a substantial change in risk profile as a result of doing that, though we are as focused as we can be on that.

Michael Mayo (Deutsche Bank): Can you elaborate on the commercial and wholesale NPAs, which were up by over half?

James Dimon: It is up by half from a very low level, so a few hundred million dollars of increase in nonperformers. We have got about $1.5 billion of loans to homebuilders and as a result, some charge-offs and movement of like half or a little more of the change in nonperformers and a little bit more of the charge-offs relate to just that activity.

Michael Mayo (Deutsche Bank): Are the problems from homebuilders and homes spreading more to commercial?

Michael J. Cavanagh: Real estate is getting worse and there is not much more than normalization there.

Jeffrey Harte (Sandler O'Neill & Partners L.P.): How comfortable are you with overall kind of commercial credit quality and where we are heading?

James Dimon: We have been very careful and we should be getting good credits.