Legal costs lead to income fall in US banks

Income in American banks has fallen for the first time in four years, brought down by mounting legal costs at JP Morgan.

27 November 2013

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The survey suggests legal and claims departments are focused on the total cost of a matter, rather than just settlement costs or just legal costs Dusit

A report from the Federal Deposit Insurance Company (FDIC) shows that net income in Q3 this year for the 6,891 institutions it insures has collectively fallen by US$1.5b to $36b. The banks are, in fact, split half and half between those showing growth and those in decline compared to a year ago. The FDIC cited JP Morgan's legal expenses as the main factor behind the 4 per cent fall. Source: The Financial Times