Yes, Jamie Dimon is beginning to see the inevitable consequences of litigation risk over legacy mortgage issues at JPMorgan Chase (JPM).

But analyst Tim Travis still considers JPMorgan Chase’s stock a buy due to Dimon’s ability to keep the financial giant profitable and stable in the wake of the recession.

Litigation risk aside, he notes the following about Dimon and JPM:

“JP Morgan Chase & Co. was able to remain profitable in the worst recession since the Great Depression, which was largely attributable to the strong leadership of CEO Jamie Dimon. Dimon kept the balance sheet reasonably clean and was able to use it to take over both Washington Mutual and Bear Stearns, as they collapsed, at the request of the U.S. government and regulators.”

“By taking over these struggling companies, JPM took significant risks, which otherwise would have fell on to the FDIC and rattled the markets even further, likely deepening the recession. While these acquisitions did end up being profitable, the U.S. government and regulators continue to penalize the institutions that took over these problematic institutions for misdeeds that occurred prior to them taking the companies over.”