Top banks pay $300 b on post-crisis litigation – as costs continue to rise
The post-2010 legal and regulatory bills rose paid out by the top 16 banks in the world rose nearly 20 per cent in 2014 amidst signs that the charges might continue to be incurred, according to the CCP Research Foundation.
While many bank officers claim that the fines, settlements and provisions are legacy issues, CPP questions that view. Research Director Chris Steares said: ‘If you ask the banks if their reputational risk is going to change, they’d have to say yes. [But] with conduct costs continuing to be incurred, year after year, it does beg the question whether behaviours are being changed for the better.’
Car loans priced by race
However, regulatory activity is still high in many areas. JP Morgan Chase revealed in a filing in February that it was involved in legal proceedings on 20 different fronts at the end of December. One of these was a Department of Justice investigation into whether it had bought car loans that had been priced by reference to the race of the owner.
Source: GlobaLegalPost – Top banks pay $300 b on post-crisis litigation – as costs continue to rise
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