1,000,000 + Attorneys and Legal Staff - Legal employers hire more people on LawCrossing than any other site.
Cell Phones, Tablets Will Not be Admissible in Aaron Hernandez’s Murder Trial
Cell Phones, Tablets Will Not be Admissible in Aaron Hernandez’s...
Former Cyber Security Head of Health and Human Services Convicted of Child Porn Enterprise
Former Cyber Security Head of Health and Human Services Convicted of C...
Appellate Panel Hears Arguments in Gay Marriage Ban Case
Appellate Panel Hears Arguments in Gay Marriage Ban Case
Lawyer Attempts to Hire a Hitman in Exchange for Reduced Fees
Lawyer Attempts to Hire a Hitman in Exchange for Reduced Fees
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.

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.

What

 job title, keywords

Where

 city, state, zip



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!!


Image Credit: Getty Images

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.

 

 

Job of the Day
Real Estate Associate
USA-TX-Dallas

Our client is a north Dallas law firm who seeks a Real Estate Development Associate.  The ideal candidate will have 2-4 years law firm experience concentrated in representing real estate develope...