Global bank settlements top $ 50 b this year as US cracks down

Friday, 8 August 2014 00:50 - - {{hitsCtrl.values.hits}}

Reuters: Major global banks have been fined at least $50 billion by US authorities this year for activities ranging from issuing shoddy mortgaged-backed securities to money laundering. The following is a summary of major fines imposed by US authorities on Wall Street banks and their global rivals since the 2008 financial crisis. The overall tally, including some smaller banks and smaller payments not listed below, totals more than $80 billion since 2008: Bank of America Corp September 2012: Agrees to pay $2.43 billion to settle claims it hid crucial information from shareholders when it bought investment bank Merrill Lynch & Co at the height of the financial crisis April 2013: Agrees to pay $165 million to settle accusations from the federal agency that regulates credit unions over sales of mortgage-backed securities to corporate credit unions that led them to fail December 2013: Pays about $404 million to Freddie Mac to resolve all repurchase liabilities on home loans sold to the government-controlled mortgage company from 2000 to 2009 January 2014: A New York state judge approves an $8.5 billion settlement with investors in mortgage securities March 2014: Agrees to pay $9.3 billion to settle claims that it sold Fannie Mae and Freddie Mac faulty mortgage bonds August 2014: Close to a deal with the U.S. Department of Justice to pay more than $16.5 billion to end probe into mortgage securities sold in the run-up to the financial crisis Citigroup Inc February 2012: Agrees to pay $158.3 million to settle U.S. civil claims that it defrauded the government into insuring thousands of risky home loans made by its CitiMortgage unit August 2013: Agrees to pay bondholders $730 million to resolve claims the bank concealed its exposure to billions of dollars of toxic mortgage assets prior to the financial crisis July 2014: Agrees to pay $7 billion to settle a government investigation into mortgage-backed securities the bank sold in the run-up to the financial crisis JPMorgan Chase & Co September 2013: Agrees to pay about $920 million in penalties to regulators in the United States and UK to settle some potential liabilities from its $6.2 billion “London Whale” derivatives loss in 2012 October 2013: Agrees to pay $100 million to Commodity Futures Trading Commission to settle charges related to the “London Whale” scandal November 2013: Agrees to pay $13 billion to settle mortgage-related charges with the U.S. government BNP Paribas SA July 2014: Pleads guilty to two criminal charges and agrees to pay almost $9 billion to resolve accusations it violated U.S. sanctions against Sudan, Cuba and Iran Credit Suisse AG May 2014: Pleads guilty to a U.S. criminal charge that it helped Americans evade taxes; pays a penalty of more than $2.5 billion Morgan Stanley February 2014: Agrees to pay $1.25 billion to the U.S. regulator for Fannie Mae and Freddie Mac to settle a lawsuit related to the sale of mortgage-backed securities Deutsche Bank AG December 2013: Agrees to pay $1.9 billion to settle claims it defrauded Fannie and Freddie in the sale of mortgage-backed securities before the 2008 financial crisis Barclays PLC June 2012: Agrees to pay $453 million to U.S. and British authorities to settle allegations that it manipulated key interest rates. April 2014: Agrees to pay $280 million to Fannie Mae and Freddie Mac to settle claims that it sold them faulty mortgage-backed securities during the housing bubble Standard Chartered PLC August 2014: Warns it faced another fine from New York’s financial regulator for problems in its anti-money laundering controls. The penalty is likely to be somewhere between $100 million and the $340 million the bank paid two years ago UBS AG August 2009: Agrees to pay $780 million in penalty to settle a U.S. tax dispute ING Bank NV June 2012: Agrees to pay $619 million to settle U.S. government allegations that it violated U.S. sanctions against Cuba, Iran and other countries HSBC Holdings PLC December 2012: Agrees to pay $1.92 billion in fines to U.S. authorities for allowing itself to be used to launder drug money flowing out of Mexico, and other banking lapses Commerzbank AG Expected to pay between $600 million and $800 million to resolve investigations into its dealings with Iran and other countries under U.S. sanctions Goldman Sachs & Co June 2010: Pays $550 million to settle SEC charges it misled investors in a subprime mortgage product in the lead up to the financial crisis Wells Fargo & Co December 2013: Agrees to pay a net $541 million to Fannie Mae to settle claims over defective home loans