Tomahawk, WI 10/14/2013 (BasicsMedia) – The time is here when companies are once again releasing their quarterly financial results left, right and center. JPMorgan Chase & Co (NYSE:JPM) is the latest to venture into this exercise when it recently announced or published its latest quarterly results for 2013. Contrary to what has always been the case, for the first time, JPM announced that it had made losses during this quarter. This is strange because JPM has seemingly been on a sound financial footing for quite some time now. But to those of us who kept a close eye on JPM, this has not come as a shock.

 How Much Was JPM’s Quarterly Loss?

 JPM has just announced that it posted a loss of $380 million in its latest quarterly financials. But this doesn’t show the true picture in terms of the company’s financials. It posted that it earned $5.71 billion as net income during the same period last year. So the question remains this; how could JPM go from a net income of $5.71 billion in 2012 to a loss of $380 million in 2013? Can a company lose this much money within a 12-month period the way JPM has just done? And more importantly, is this only a one-off scenario which won’t be repeated any time soon?

 I can confidently say that the company’s finances are not in jeopardy, at least not at the moment. JPM is in good financial footing just like I said earlier. It remains the largest U.S bank based on assets alone. It enjoys a market cap of $197.40 billion. I don’t think it is under any serious risk, not after the manner in which it managed to overcome the challenges brought on it by the 2008 global financial crisis, whose effects were felt across a wide range of industries and companies. Therefore, one needs to look at the $380 million loss by placing it in context.

 Role Played by JPM’s Legal Disputes ion the Quarterly Losses

 JPM has endured the most trying period ever in its existence. It has been faced with one lawsuit after the other in 2013. These lawsuits have eaten into the company’s finances more than it had anticipated. It got to a point where JPM decided that it was going to settle all legal matters with the U.S. government out of court so that it doesn’t have to waste more time in court answering one after the other charge. The lawsuits which JPM have faced in 2013 are responsible for making the company to lose close to $7.2 billion, which is quite a high amount in the industry.

 JPM’s legal problems are far from over. Yes, they have abated somewhat in the last few weeks since it was announced that it was in talks with the U.S. government to pay a one-time offer of around $11 billion to resolve all legal disputes. But due to their volatile nature, they may continue rearing their heads from time to time thus messing up the company’s financials. But I don’t think that they will reach the levels they got to in 2013, which is responsible for the loss of $380 million that JPM has just announced. JPM’s future is still good and solid enough.

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