US and EU banks expect US$300b litigation bill

The leading US and EU banks have paid out US$230b in litigation costs and could end up disbursing another $70b by 2016, according to Morgan Stanley.

14 January 2015

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The analysis comes in a research note from Morgan Stanley analysts. The expenses relate to long-running issues including the alleged mis-selling of mortgage-backed securities and alleged fixing of benchmarks. Compliance officers look set to play an important role if the flow of costs is to be stemmed, according to the Morgan Stanley experts. Analyst Huw van Steenis wrote: 'FX settlements underscore (the) need to prove culture and business models are transformed before returns and payouts can rise.' Source: Irish Times