Financial Fines [Infographic]

Rosie Jones https://forexsuggest.com 2m 607

The views of this article are the perspective of the author and may not be reflective of Confessions of the Professions.

Top 10 finance companies fined the most in the last 10 years

• Bank of America has received by far the highest combined value of over $60 billion in fines since 2012. Bank of America was fined heavily in the aftermath of the 2008 financial crisis, and was the recipient of four of the ten biggest fines since 2012.  Their total amount penalised was a huge $60,627,451,587 across 124 fines.

• JPMorgan Chase saw the second-largest combined fine value since 2012 at $34.21 billion. Aside from the company’s $13 billion fine for toxic securities abuses, the company was fined another 121 times to make up the $21.21 billion remainder. Some notable fines within these are a $5.33 billion penalty due to mortgage loan servicing and foreclosure abuses, a further $1.96 billion fine for mortgage abuses, and a $1.7 billion penalty in 2013 relating to anti-money laundering criminal charges.

• Wells Fargo is the third most heavily fined company in our study with a combined fine value of $20.32 billion since 2012. In 2012, Wells Fargo was included in the $25 billion settlement which targeted the 5 biggest mortgage servicers in the United States to address mortgage loan servicing and foreclosure abuses. It was required to pay $5.34 billion to provide relief to homeowners affected by the subprime mortgage crisis.

• Natwest Group PLC has taken 7th place for the most fined finance company since 2012 when looking at combined fine values. Headquartered in Edinburgh, in the UK, Natwest managed to rack up 30 fine counts and bill up to $13 billion in fines, partially due to money laundering failings.

• Since 2012 toxic securities abuses were by far the most costly of any offence type, with a combined value of $94.59 billion. These offences often relate to misleading investors with regard to the packaging, securitization, issuance, marketing and many other breached codes of conduct that were at the centre of the 2008 financial crisis. The biggest reason for fines in 2022 is Investor Protection Violation, with 24 overall violations. This is followed by consumer protection violation and Foreign corrupt practices act.

• As of November 21st, there had been a total of 154 fines handed out for financial violations in 2022 in the United States. This puts 2022 on course to be the year with the lowest number of fines in our study, with approximately 173 fines predicted in total if the current rate continues.

• Companies in New York state have received the most fines since 2012 with a total of 843, accounting for 27.68% of the national total. As New York City is home to Wall Street, the centre of finance in the United States, this result should come as no surprise. Only 18 of these fines were issued to companies based outside of NYC, 13 of which went to Buffalo-based M&T Bank. New York City is the city whose companies are fined the most frequently, with a total of 825 fines being issued to resident companies of the Big Apple since 2012.

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