Samsung Argues over Inflated Patent Damages
Samsung Argues over Inflated Patent Damages
Former Deutsche Bank Salesman Admitted to Bribery
Former Deutsche Bank Salesman Admitted to Bribery
U.S. High Court Upholds Michigan Affirmative Action Ban
U.S. High Court Upholds Michigan Affirmative Action Ban
Supreme Court Rules Michigan Affirmative Ban is Constitutional
Supreme Court Rules Michigan Affirmative Ban is Constitutional
Your profile matches an open legal position. Apply now!
Job Listings

U.S. Banks in Trouble

 

U.S. banks are having money trouble, according to CNBC. The subprime mortgage crisis is resulting in many banks having to pay extra legal fees of more than one hundred billion dollars.  Before the financial crisis in 2008, banks sold “residential mortgage-backed securities,” and then homeowners didn’t pay everything they were supposed to pay in 2007, resulting in indefinable debt. Not knowing whether the debt was high risk or low risk, the global financial crisis was triggered and has not since settled.

 

JPMorgan is paying thirteen billion dollars in settlement arrangements while Bank of America is willing to pay out eight point five billion dollars. Standard and Poor believes banks will have to pay extra, and credit analyst Stuart Plesser stated, “We estimate that the largest banks may need to pay out an additional $55 billion to $105 billion to settle mortgage-related issues.” The major banks included in the report are Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo. Citigroup declined to comment on the issue.



Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!


 

The securities sold have “breached representations and warranties.” The banks should have set aside the fifty billion dollars needed to pay for the proper legal expenses. Plesser also commented, “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.” However, Bank of America does maintain a negative rating.

 

Image Credit: Getty Images

Did you like this? Share it:
U.S. Banks in Trouble by

Tagged: , , ,

Jaan Posted by on November 27, 2013. Filed under Legal News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.