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Top 10 Bank Fines (Post 2008-09 Crisis)

Posted By Barry Ritholtz On September 27, 2013 @ 12:24 pm In Bailouts,Corporate Management,Really, really bad calls,Regulation | Comments Disabled

Fines here, fines there, fines everywhere!

The Wall Street Journal [1] discusses the proposed $11 billion dollar JPM fine, but  buries the good stuff in this morning’s article on Jamie Dimon (This Generation’s Greatest Banker! ®)

We have been tracking JPM’s fines [2], but if you want an industry overview, try this collection: Here is a quick

Top 10 Bank Fines

$25 Billion for Foreclosure processing abuses.
Five Banks: Wells Fargo & Co., J.P. Morgan Chase & Co., Citigroup Inc., Bank of America Corp., Ally Financial Inc.
Regulators: U.S. Department of Housing and Urban Development, U.S. Department of Justice and 49 state attorneys general (2012)

$9.3 Billion for Foreclosure abuses.
Thirteen Banks: Bank of America Corp., Wells Fargo & Co., J.P. Morgan Chase & Co. and 10 others
Regulators: Office of the Comptroller of the Currency and Federal Reserve (2013)

$1.9 Billion for Money-laundering
HSBC Holdings
Regulators: U.S. Department of Justice, Treasury and others (2012)

$1.5 Billion for Manipulating Libor rates.
UBS
Regulators: Commodity Futures Trading Commission, former U.K. Financial Services Authority, Swiss Financial Market Supervisory Authority, U.S. Department of Justice (2012)

$920 Million for Lack of oversight of giant bets by ‘London whale.’ (poor internal controls).
J.P. Morgan Chase & Co.
Regulators: Securities and Exchange Commission, Office of the Comptroller of the Currency, Federal Reserve and U.K.’s Financial Conduct Authority (2013)

$550 Million for materially misleading and incomplete information in sale of mortgage-related securities
Goldman Sachs
Regulators: U.S. Securities and Exchange Commission (2010)

$453.6 Million for Manipulation of  interbank lending rates (Libor).
Barclays
Regulators: U.S. Department of Justice, U.S. Commodity Futures Trading Commission, former U.K. Financial Services Authority (2012)

$410 Million for Electricity market manipulation
J.P. Morgan Chase
Regulators: U.S. Federal Energy Regulatory Commission (2013)

$335 Million for Discrimination against black and Hispanic borrowers.
Bank of America
Regulators: U.S. Department of Justice (2011)

Note that the bad behavior generated big bonuses for execs based on the false (perhaps even fraudulent) depiction of profits. Now that this bad behavior has led to fines which resulted in the profits going away, shouldn’t those prior bonuses also disappear?

What should the shareholders pay for this?

 

 

 

Source:
J.P. Morgan Chief Dimon Meets With Holder [3]
By DEVLIN BARRETT and ROBIN SIDEL
WSJ, September 27, 2013 http://online.wsj.com/article/SB10001424052702303796404579099041935922038.html


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2013/09/top-10-bank-fines-post-2008-09-crisis/

URLs in this post:

[1] Wall Street Journal: http://online.wsj.com/article/SB10001424052702303796404579099041935922038.html#articleTabs_interactive%3D%26articleTabs%3Dinteractive

[2] tracking JPM’s fines: http://www.ritholtz.com/blog/2013/09/jpm-fines-8b/

[3] J.P. Morgan Chief Dimon Meets With Holder: http://online.wsj.com/article/SB10001424052702303796404579099041935922038.html

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