Subscribe to our mailing list

* indicates required

 

 

 

 

BROWSE BY TOPIC

ABOUT FINANCIALISH

We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.

 

Stay Informed with the latest fanancialish news.

 

SUBSCRIBE FOR
NEWSLETTERS & ALERTS

FOLLOW US

Archive

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