Banks' Bad Behavior Costing Them Big: $100B

Fallout from Libor scandal could push legal tab even higher
By Ruth Brown,  Newser Staff
Posted Mar 27, 2013 1:04 PM CDT
Banks' Bad Behavior Costing Them Big: $100B
In this Dec. 7, 2011 file photo, a woman passes a Bank of America office branch, in New York.   (AP Photo/Mark Lennihan, File)

Big banks are paying dearly for their recent bad behavior: to the tune of $100 billion and counting, reports the Wall Street Journal. The top four US banks alone have paid $61.3 billion in financial crisis- and mortgage-related settlements over the past three years, and analysts don't expect the damages to end there. One expects another $24.7 billion to go toward mortgage lawsuits and at least $14 billion to be spent on other settlements.

But the fallout for banks around the world from the Libor rate-rigging scandal could dwarf that figure, reports the Journal, with estimates for damages ranging from $7.8 billion to as high as $176 billion. Barclays, UBS, and the Royal Bank of Scotland Group have already agreed to $2.5 billion in settlements with regulators, but private lawsuits loom. Acknowledges one financial services attorney, "Libor is the big unknown right now, because it's still playing out at the preliminary stages." (More Libor rate-fixing scandal stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.