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Cost of the Financial Crisis to Banks
March 12, 2012
Nearly 4 years after the financial crisis, and billions in settlements have been arranged with Wall Street commercial and investment banks, with new settlements popping up daily. It can be hard to keep track of it all. Who's been hit, with what, for how much, is it final?
The numbers range significantly, with Bear Stearns incurring the lowest cost - $1 million - and Bank of America incurring the highest - well, let's not get ahead of ourselves.
Compilation. Fortunately, the good people at Pro Publica made the effort to access the online records of the SEC, the Department of Justice, nationalmortgagesettlement.com, and Bloomberg. The result is a chart of notable settlements reached between big banks and the government - namely, the SEC and the Department of Justice - over charges stemming from the crisis.
Overall, the SEC says it has brought in almost $2 billion in penalties as well as money for investors from settlements related to the crisis. The Department of Justice lists dozens of criminal cases it has brought against smaller players.
And the investigations continue. The SEC recently sent notices of possible charges to JPMorgan Chase, Goldman Sachs, and Wells Fargo. The DOJ reportedly has issued subpoenas to 11 financial institutions related to mortgage securities.
Compilation by Organization. The costs incurred by organization are listed below. For more complete information, go to: [ProPublica, 3/6/12]
Ally Financial (formerly GMAC) $310,000,000
American Home Mortgage $2,450,000
Bank of America $11,970,000,000
Bear Stearns $1,000,000
Charles Schwab $118,000,000
Citigroup $2,696,000,000
Countrywide (Bank of America) $87,500,000
Goldman Sachs $550,000,000
JP Morgan $5,443,000,000
Merrill Lynch $10,000,000
Morgan Keegan (Regions Bank) $200,000,000
State Street $300,000,000
TD Ameritrade $10,000,000
Wachovia (Wells Fargo) $11,000,000
Wells Fargo $4,350,000,000

