JPMorgan Chase, the nation's largest bank, announced Tuesday a more than seven percent drop in net income during the fourth quarter, a result brought on by billions of dollars paid to settle claims of financial misconduct.
JPMorgan earnings fell 7.3 percent to $5.3 billion, or $1.30 a share. That's five cents lower than Wall Street experts' prediction of $1.35 a share, The New York Times reported. The decrease reflects the nearly $20 billion the bank has paid over the past year in the wake of government inquiries.
"We are pleased to have made progress on our control, regulatory and litigation agendas and to have put some significant issues behind us this quarter," JPMorgan Chief Executive Jamie Dimon said in a statement obtained by the Times. "It was in the best interests of our company and shareholders for us to accept responsibility resolve these issues and move forward."
Just last week JPMorgan paid $2 billion to federal authorities for disregarding warning signs of Bernard Madoff's ponzi scheme. In November 2013, JPMorgan dished out a record $13 billion to settle claims it sold shady mortgage securities, the Times reported.
But the fire and brimstone isn't over for the bank. JPMorgan is also being investigated for manipulating exchange markets overseas, the Financial Times reported.
Dimon declined to say whether or not the bank will be able to settle all of its legal investigations this year.
"I think you've got to take a rain check on that," Dimon told the Financial Times. "Some of those are just beginning. The set of facts on all the banks are different."
JPMorgan set aside $9.2 billion at the end of the third quarter last year in preparation for billion-dollar settlements. The move left the bank with its first quarterly loss ever since Jamie Dimon became chief executive. Despite the financial scandals, Dimon said he is not stepping down.
When asked if other investors asked for his resignation, Dimon told the Financial Times, "No, no and it's all up to the board."
