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
In this Dec. 7, 2011 file photo, a woman passes a Bank of America office branch, in New York.   (AP Photo/Mark Lennihan, File)

(Newser) – 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."

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Showing 3 of 18 comments
Luna_Park
Mar 28, 2013 5:27 AM CDT
Hmm, okay... penalties. They'll pay billions in penalties. Which begs the question... where will the penalty money go to? Back to the government? Why them? They haven't done anything to deserve it, except go after the banks, which is their duty anyway. Pay it back as restitution to the victims of the bank's shenanigans. That's the only decent thing to do.
MisterPlinkett
Mar 28, 2013 2:05 AM CDT
Costing us 100 billion. since our psychotic, bloated, criminal government will just bail em out.
myflap.blow
Mar 27, 2013 11:16 PM CDT
thats Big? i paid that in bank fees alone last year