WASHINGTON (AP) — U.S. banks earned less in the July-September quarter than they did a year earlier, marking their first year-over-year profit decline since the spring of 2009 when the country was still mired in the Great Recession.
The Federal Deposit Insurance Corp. said Tuesday that the banking industry earned $36 billion in the third quarter, down $1.5 billion or 3.9 percent from the third quarter of 2012.
The FDIC said the earnings decline came primarily from a $4 billion increase in litigation expenses at a single institution.
The FDIC did not name the institution, but the JPMorgan Chase & Co. reached a $4.5 billion settlement with investors earlier this month which was the latest in a series of legal settlements for the nation's largest bank over JPMorgan's sales of mortgage-backed securities in the year preceding the 2008 financial crisis.
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