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How Much Have Banks Been Fined Since the Crisis?

Money Four BHAccording to a tally released Tuesday by New York-based investment banking firm Keefe, Bruyette & Woods, banks have been fined $243 billion since the financial crisis in 2008.

As reported by Marketwatch, repayment of the fines involves a mixture of actual cash payments, which go into federal or state coffers, and credits in the form of loan forgiveness, debt restructuring, and other measures.

Bank of America is by far the hardest hit, having racked up $76.1 billion in fines since the crisis. JPMorgan Chase is second on the list with $43.7 billion in fines. There is a significant dropoff after that, with the third-highest fine load going to Citigroup at $19 billion. From there, the rundown continues with Deutsche Bank ($14 billion), Wells Fargo ($11.8 billion), RBS ($10.1 billion), BNP Paribas ($9.3 billion), Credit Suisse ($9.1 billion), Morgan Stanley ($8.6 billion), Goldman Sachs ($7.7 billion), and UBS ($6.5 billion).

The report added that it does expect fines to subside going forward, citing both the fact that it’s been a decade since the crisis and that the Trump administration is actively scaling back regulation on many fronts.

In related news, Goldman Sachs announced last week that forgiving principal on 806 mortgages had brought the bank to the halfway point toward fulfilling a $1.8-billion consumer-relief obligation. That obligation stems from a pair of April 2016 settlement agreements between Goldman Sachs, the U.S. Department of Justice, and three states. A report by Prof. Eric D. Green, the independent monitor tasked with overseeing the consumer-relief portions of the agreements, noted that Goldman Sachs had forgiven a total of $73,508,818 in principal on those 806 first-lien mortgages since November 15, 2017. That works out to an average principal forgiveness of $91,202 per borrower.

According to the report, Goldman Sachs’ consumer-relief measures during the period since November 2017 were “spread across 41 states, the District of Columbia and Puerto Rico, with 35 percent of the credit located in the settling states of New York, Illinois, and California.”

About Author: David Wharton


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