The 10 largest fines in history paid by banks
US, WASHINGTON (ORDO NEWS) — According to a recent study, banks have paid record highs as fines since the end of the global financial crisis – $ 243 billion.
Most of these penalties are related to misleading investors regarding the quality of mortgages that were included in bonds during the inflation of the real estate bubble.
According to experts from Keefe, Bruyette and Woods, who drew up the report, Bank of America became the leader in terms of fines paid – $ 76 billion.
JPMorgan Chase has been fined $ 44 billion. A number of large banks received fines of more than $ 10 billion. Thirteen banks paid 93% of all fines.
Below we will talk about the largest fines in history that banks had to pay.
10. Credit Suisse
In 2014, the bank agreed to pay a fine of $ 2.6 billion to reach an agreement with the US Department of Justice. Credit Suisse was the first financial institution to openly admit to helping U.S. citizens evade taxes.
9. JPMorgan Chase
In February 2012, the US Department of Housing and Urban Development and 49 states signed an agreement called the National Mortgage Settlement.
The five largest banks in the country were fined a total of $ 25 billion. JPMorgan Chase accounted for $ 5.29 billion. All five banks were accused of the fact that before the crisis of 2008 they signed and notarized documents without verification.
8. Credit Suisse
The Swiss bank was forced to pay another major fine, now in the amount of $ 5.3 billion, in December 2016. Then the bank was accused of selling bad debts to investors before the 2008 financial crisis.
The bank paid $ 2.5 billion to authorities and another $ 2.8 billion to help consumers.
7. Wells Fargo
Wells Fargo was among the five banks that were among the fined banks under the National Mortgage Settlement in 2012. The bank had to pay $ 5.35 billion, which was slightly higher than that of JPMorgan. Wells Fargo not only signed and notarized documents without verification, he was also accused of the bank having lost important securities.
6. Deutsche Bank
By the end of 2016, Deutsche Bank finally agreed to pay a fine of $ 7.2 billion. As with other banks on our list, Deutsche Bank also sold bad mortgage debt to investors. About $ 4.1 billion went to pay aid to consumers for 5 years.
5. Bank of America
Bank of American entered the rating three times when it had to pay the largest fines in history. This is one of the largest banks in the world in terms of assets, which helped him to pay all the fines that regulators required. So, in 2008, Bank of America acquired Countrywide, a company that sold subprime mortgage debt worth $ 174 billion. In 2011, Bank of America agreed to pay $ 8.5 billion for Countrywide offenses.
4. BNP Paribas
The largest bank in France was established in 2000 after the merger of Banque Nationale de Paris (BNP) and Paribas. In June 2014, he was convicted of two crimes. As a result, the bank had to pay $ 8.97 billion in this case. The bank was accused of violating sanctions against Iran, Sudan and Cuba by conducting transactions through the American financial system for its customers in Iran, Sudan and Cuba.
3. Bank of America
Under the 2012 National Mortgage Settlement, Bank of America was due to pay out $ 11.8 billion in subprime mortgages sold to Fannie Mae. About $ 1 billion went to the Federal Housing Administration.
2. JPMorgan Chase
JPMorgan Chase reached an agreement with the U.S. Department of Justice to pay $ 13 billion in October 2013. This money was used to pay for numerous litigations. Almost all of them were related to the sale of subprime mortgage debts to investors. JPMorgan acquired Washington Mutual and Bear Stearns during the 2008 crisis. In addition, he received their obligations.
1. Bank of America
The largest fine in history was paid by Bank of America. The bank was forced to pay a record high of $ 16.65 billion in 2014. This money went into legal claims payments, in which the bank was accused of misleading investors by forcing them to buy sub-standard securities. The bank acquired Merrill Lynch and Countrywide Financial during the 2008 financial crisis.
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