JP Morgan posts rare quarterly loss due to high legal costs

(UPI) -- JP Morgan Chase has reported a third quarter loss of $380 million, due to jump in legal costs -- just the second time in 19 quarters the largest U.S. bank by assets missed consensus.

The $380 million loss, or 17 cents per share, compares with net income of $5.71 billion, or $1.40 per share, a year earlier.

The rare quarterly loss comes as the bank incurred $9.2 billion in legal costs, including money set aside for future settlements. Excluding litigation expenses and reserve release, the company posted a profit of $5.82 billion, or $1.42 per share.

The high cost of ongoing and future litigation as regulators scrutinize the bank following May 2012 derivatives losses has been a concern for JP Morgan and CEO Jamie Dimon.

JP Morgan revealed its legal reserve now holds a full $23 billion, which officials hope will be viewed positively by investors.

Meanwhile, the bank also announced Thursday it has sold all short-term U.S. government debt out of its money market funds, as other money market mutual fund managers do the same. JP Morgan says it no longer holds U.S. Treasuries that mature or have payments scheduled between Oct. 16 and Nov. 6, the period during which the country would default if Congress can't reach a debt ceiling deal.