JPMorgan Earnings Won't Be Business as Usual (Update 1)

Updated from 7:26 a.m. with latest estimates and share price information.

NEW YORK (TheStreet) -- JPMorgan Chase (JPM) will be the first Dow component and the first bank to report third-quarter results on Friday, formally kicking off earnings season.

As the nation's largest bank, it usually sets the bar for its competitors. Management views on the economy, housing and other concerns such as the government shutdown often move more shares than just JPMorgan.

This time around investors will be on heightened lookout for how the bank is handling its mounting legal tab as well as a raft of new regulations and enforcement actions.

According to consensus estimates polled by Thomsom Reuters as of Thursday afternoon, JPMorgan is expected to report a third-quarter earnings per share of $1.19 per share, down 25% from $1.60 per share in the previous quarter and down 15% from $1.40 per share reported a year earlier.

Total revenues are expected to come in at $23.94 billion, down from $25.21 billion in the second quarter and $25.14 billion a year earlier.

Shares of JPMorgan ended Thursday up 3.5% at $52.52.

But the big news would be the bank announcing an expected settlement with the Department of Justice and other regulators over the sale of faulty mortgage-backed securities in the run up to the crisis.

Press reports suggest the settlement could be as high as $11 billion, though at least $4 billion of that could be in the form of consumer relief.

While the tab is high, most analysts believe that such a settlement would broadly put to rest concerns about the bank's legal woes.

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