point out the bank's profitability when investors bring up its troubles. The bank posted record profits last year, even as bad derivatives bets known as the "London whale" trades resulted in $6 billion of losses.
But the third-quarter loss underscores how legal problems threaten the profitability of a bank that has long boasted of a "fortress" balance sheet.
Dimon "has become a little bit less critical, a little bit less vocal, a little bit more humble," said Shannon Stemm, a stock analyst at brokerage Edward Jones. "He used to run the bank that really stood out for weathering the crisis better than others."
The bank's legal issues are legion. JPMorgan faces more than a dozen probes globally, including whether it fraudulently sold U.S. mortgage securities and whether it improperly fixed certain benchmark borrowing rates. The Securities and Exchange Commission is investigating whether the bank violated anti-bribery laws in hiring sons and daughters of executives of Chinese state-owned companies.
The Justice Department is looking into whether bank employees obstructed justice in a power market manipulation probe by the Federal Energy Regulatory Commission that the bank settled in July for $410 million. JPMorgan neither admitted nor denied violations.
Federal prosecutors in August brought criminal charges against two former JPMorgan traders, accusing the pair of deliberately understating losses in the "Whale" scandal. The SEC received an admission of wrongdoing from the bank in a parallel civil action, a rare step for the government agency.
In September, JPMorgan tried to reach a settlement with the U.S. Department of Justice and other federal and state agencies to resolve claims against the bank over its mortgage businesses. An $11 billion settlement was discussed, according to sources familiar with the matter. Dimon went to Washington to meet with U.S. Attorney General Eric Holder on September 25, but no deal has resulted.
Much of those claims relate to mortgage bank Washington Mutual and investment bank Bear Stearns, two failing firms that JPMorgan took over in 2008.
PAYOUT SEEN SAFE
Despite the clouds, the bank's shares are up 20 percent this year and its CEO still has many fans. JPMorgan shares closed down a penny at $52.51 on