Morgan Stanley’s analysts have been trying to put some numbers on potential litigation expenses for large-cap US and European banks this year. The large banks it covers have already paid out around $230 billion in litigation since 2009, with Bank of America leading the way at an eye-watering $64.7 billion paid and $3.5 billion still reserved, in front of JPMorgan, which has paid $40 billion with another $6 billion still reserved.
The good news is that the worst might be behind them, particularly for the top five US banks, which have already paid the best part of $130 billion. Morgan Stanley calculates they might just have another $18 billion odd to pay – mere loose change, then.
Further reading • Regulators still calling the shots |
However, the top 20 European banks, which have already paid or reserved for payment about $105 billion in litigation, could end up paying a further $50 billion by 2016. The big outstanding cases would seem to be Barclays’ recently delayed settlement with US regulators on FX fines, estimated to reach around £320 million, and a possible further £1.5
