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Top US banks pay out more in legal costs than divis
The top six US banks have accrued $103 billion in legal expenditure in the past five years - more than they have collectively paid in shareholder dividends.
Banks see legal costs rise Frank11
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The banks are Bank of America, JP Morgan, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley. The costs cover legal bills, funding in-house legal teams, litigation and claims payments, according to Bloomberg Businessweek which compiled the data. Well over a third (40 per cent) of the expenses have been run up since January 2012 - with banks warning that the costs could surge under pressure from regulators, prosecutors and investors.
'There may be a sense that financial institutions have gotten away with a lot and maybe now is the time to catch up,' lawyer Daniel Hurson, former a prosecutor at the Securities and Exchange Commission, told Businessweek.
