In a 5- to 6-quart Dutch oven cook bacon until crisp. Remove with a spoon; set aside. Reserve 1 tablespoon drippings in pan.
Add chicken to pan. Sprinkle with salt and black pepper. Cook and stir over medium-high heat until chicken is no longer pink; remove from pan. Add sweet pepper and onion to pan. Cook and stir until tender. Add chopped jalapeno and garlic; cook and stir for 3 minutes. Stir in flour. Cook and stir for 1 minute. Add broth and potatoes. Bring to boiling; reduce heat. Cook, uncovered, for 10 minutes or just until potatoes are tender, stirring occasionally. Stir in chicken, corn, cream, cayenne pepper, and bay leaves. Simmer, uncovered, for 15 minutes, stirring occasionally. Discard bay leaves. Top with jalapeno slices, if desired.