News Column

After Bank of America's expected $17bn settlement: banking fines in full

August 22, 2014

Shane Hickey,

The expected settlement by Bank of America is the latest in a long line of legal resolutions that banking giants have made since the 2008 financial crisis.

Last year, JP Morgan Chase, the biggest bank in the US, agreed a $13bn (7.8bn) settlement following months of tense negotiations with the justice department over a string of investigations into home loan bonds between 2005 and 2008.

In June, France's biggest bank, BNP Paribas, reached an $8.97bn (5.4bn) settlement with the US authorities for violating sanctions against Iran, Cuba and Sudan.

The US attorney general, Eric Holder, last month called the misconduct of Citigroup "egregious" following an agreement that the bank would pay $7bn (4.2bn) to settle a federal investigation into toxic mortgage products the bank sold in the run-up to the crisis.

In December, Deutsche Bank settled a lawsuit with the US federal housing finance agency for $1.9bn (1.14bn) over mortgage-backed securities.

The Credit Suisse Group became the first bank to admit to a crime in more than a decade in May when it pleaded guilty to criminal charges that it helped Americans evade taxes, leading to a fine of $2.6bn (1.56bn).

In 2012, US prosecutors said HSBCwas guilty of a "blatant failure" to implement anti-money laundering controls and wilfully flouted US sanctions as the bank was forced to pay $1.9bn (1.14bn) to settle allegations it allowed terrorists to move money around the financial system.

Morgan Stanley agreed in February to pay $1.25bn (750m) to settle claims that it sold faulty mortgage-backed securities to Fannie Mae and Freddie Mac.

In June, Atlanta-based SunTrust Banks was hit with $968m (583m) in fines after settling allegations of abusive mortgage practices.

UBS agreed to pay $885m (533m) in a settlement with a US regulator in July last year over allegations that the Swiss bank misrepresented mortgage-backed bonds during the housing bubble.

In January last year, 10 banks and financial institutions including Bank of America, JP Morgan Chase and Wells Fargo agreed to settle claims of foreclosure abuses for $8.5bn (5.1bn).

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Source: Guardian Web

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