Email your news and story ideas to: [email protected]
Total US bank litigation bill could top US$100 billion
The mis-selling of mortgage-backed securities looks set to cost US banks over one hundred billion dollars.
Large US banks may have additional payouts relating to mortgage issues Vladru
Sign up for our free daily newsletter
YOUR PRIVACY - PLEASE READ CAREFULLY DATA PROTECTION STATEMENT
Below we explain how we will communicate with you. We set out how we use your data in our Privacy Policy.
Global City Media, and its associated brands will use the lawful basis of legitimate interests to use
the
contact details you have supplied to contact you regarding our publications, events, training,
reader
research, and other relevant information. We will always give you the option to opt out of our
marketing.
By clicking submit, you confirm that you understand and accept the Terms & Conditions and Privacy Policy
Ratings agency Standard and Poor's has estimated that the largest banks in the US may need to pay out an extra US$55 to around 105 billion dollars relating to the mis-selling of mortgage-backed securities. JP Morgan has already agreed a $13b payment, and Bank of America is in discussions over an estimated $8.5b. But Stuart Plesser, a credit analyst at S&P said in a statement: 'We estimate that the largest banks may need to pay out an additional $55 billion to $105 billion to settle mortgage-related issues'. However, the ratings agency believes that the banks involved can withstand the financial pressure. He continued: 'We already incorporate heightened legal issues into our ratings, and we currently don't expect legal settlements to result in negative rating actions for U.S. banks.' Source: Here is the City.
