MOSCOW (Sputnik) — A survey of five largest banks in the US and the 20 largest banks in Europe, quoted by the Financial Times on Monday, revealed that $137 billion of the total was paid by Bank of America, Morgan Stanley, JPMorgan, Citi and Goldman Sachs.
The leading 25 Western financial institutions will have to pay an additional $60 billion during over the next two years.
According to Huw van Steenis, the managing director for Morgan Stanley’s European asset management arm, the impact of the fines and lawsuit-related fees on banks is profound.
“Litigation not only takes a bite out of your equity but has a much longer lasting impact on the amount of capital you need to hold,” van Steenis said, quoted by the media.
A global financial crisis began in late 2007 in the United States with housing and credit bubbles, affecting financial institutions around the world.
