Legal News

U.S. Banks in Trouble
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

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.

  
What
Where


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

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!!






 

RELEVANT JOBS

Litigation Associate

USA-NY-New York City

Position Overview DGW Kramer LLP is seeking an associate with a minimum of 2 years of general com...

Apply now

Corporate Counsel, Securities

USA-CA-San Diego

Position Summary The Corporate Counsel, Securities plays an important role in the organization by...

Apply now

FT Legal Assistant Wanted For Personal Injury Law Firm

USA-FL-Weston

FT Legal Assistant / Clerk Wanted For Personal Injury / Victim\'s Rights Law Firm Law Office...

Apply now

Associate Litigation Attorney

USA-CA-Irvine

The Law Offices of Samer Habbas is a high-volume, fast-paced firm seeking a motivated and driven att...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Real Estate Attorney

USA-NJ-Parsippany

Parsippany office of a BCG Attorney Search Top Ranked Law Firm seeks real estate attorney with 5 yea...

Apply Now

Corporate Advisory Associate Attorney

USA-IL-Chicago

Chicago office of a BCG Attorney Search Top Ranked Law Firm seeks corporate advisory associate attor...

Apply Now

Trademark and Copyright Portfolio Associate Attorney

USA-CA-San Francisco

San Francisco office of a BCG Attorney Search Top Ranked Law Firm seeks a trademark and copyright po...

Apply Now

SEARCH IN ARCHIVE

To Top