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Legal Bills for U.S Banks Reach All-Time High

Legal Bills for U.S Banks Reach All-Time High


Legal Bills for U.S Banks Reach All-Time High

Legal Bills for U.S Banks Reach All-Time High$103 billion has complied in legal costs for the U.S top six banks since the beginning of the financial crisis and numbers are expected to continue rising.

Mounting expenses since January of 2012 combined with a multitude of addition cases expected to begin continue to hurt stock prices. The damages from compiling legal costs stemming from the cases arising out of the financial crisis have determined that the damage to stock prices could last well into another decade. The combined $103 billion in debts includes payments to lawyers and litigation, claims settlements due to mortgages and foreclosures and court fees.

The debts of the US six largest banks which includes JPMorgan & Co and Bank of America adds up to more than the amount paid to shareholders over the last five years combined. Experts are stating that the damage has reached the point that it has become a juggernaut in finances and will continue hurting the banks. Meanwhile as bank stock values continue to suffer losses shareholders are beginning to take notice.

Bank of America and JPMorgan are estimated to hold over 75% of the total debt. According to company reports issued by the leading financial institutions, JPMorgan attributed over $21 billion in legal fees since early in 2008 and an additional $8 billion devoted to mortgage buybacks. Bank of America reporting an increase in legal fee expenses totaling up to $19 billion.

Other banks attributed to the debt including Bloomberg’s $56 billion dollars in legal costs and $47 billion for mortgage payments. Investigators are stepping up efforts now that the economy is on the rise of an upturn and U.S Attorney General Eric Holder stated that more cases stemming from the financial crisis will defiantly be presented over the upcoming months.

The cases come just five years after the financial crisis nearly devastated global markets and range from charges that banks mislead buyers of mortgage-backed securities, manipulations of markets for credit derivatives and commodities and increased interest rates that were used for worldwide loan pricing.

Many banks stock values are feeling the pinch including Bank of America who experienced a 58% decrease in value.

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Michael Reed covers business and finance related news.

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