JPMorgan Chase swung to a loss in the third quarter, the mega bank reported on Friday, as a raft of legal and regulatory problems forced the U.S.'s largest bank to pay more than $9 billion in charges.
Including items, the financial services giant posted a loss of $380 million, or 17 cents per share, compared with net income of $5.71 billion, or $1.40 per share, a year earlier. Excluding those costs, JPMorgan earned $1.42 a share on revenue of $23.9 billion.
The banking behemoth is currently grappling with a litany of risk-related problems stemming from its lending and trading practices.
Just as the bank appeared to move beyond the highly-charged trading scandal known as the " London Whale ", CEO Jamie Dimon was forced to contend with a host of investigations by the Department of Justice into its mortgage securities trades. JPMorgan has come under heavy scrutiny for its actions during the 2008 worldwide financial pandemic, when it rode to the rescue of now-defunct Bear Stearns.
"The board continues to seek a fair and reasonable settlement with the government on mortgage-related issues - and one that recognizes the extraordinary circumstances of the Bear Stearns and Washington Mutual transactions, which were undertaken at the request or encouragement of the U.S. government," said Dimon, in a statement.
JPMorgan shares moved higher in pre-market trading following the report.
Analysts had expected JPMorgan to report a quarterly profit of $1.20 per share on $23.94 billion in revenue, according to a consensus estimate from Thomson Reuters.