06:26 GMT +316 December 2019
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    Western Banks Paid $260Bln in Litigation, Fines Since 2008 Financial Crisis

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    Fines and lawsuit costs faced by the largest US and European banks after the 2007-2008 global financial crisis amount to some $260 billion, according to research by Morgan Stanley.

    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.

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    European Union, fine, litigation, Bank of America, Morgan Stanley, Goldman Sachs, Citibank, JPMorgan Chase, United States
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