But JPMorgan Chase ( JPM ) CEO Jamie Dimon was right when he told skeptical lawmakers at Wednesday's hearing that lending activity was holding up rather well, considering the circumstances. On the holding company level, JPMorgan's total loans and leases declined $16.4 billion during the fourth quarter, to $744.9 billion. Citigroup's ( C ) loans declined $22.4 billion, to $694.5 billion. Bank of America's ( BAC ) declined $11.2 billion, to $931.4 billion. A $50.1 billion fourth-quarter decline in lending for the nation's three largest banks, after receiving federal money a month in, may seem like a lot. But it's not. The decline represented only 2% of the outstanding loan balances as of Sept. 30, and took place in the midst of a particularly nasty recession. Considering that the decline included loan charge-offs, pay-downs and non-renewals of some short-term loans, the 2% decline really looks small. Still, it is a decline. Banks have bristled at acknowledging a slowdown in lending in the face of such pressure.