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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


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BFCSA; U.S.A. Banks spent more on legal bills defending their fraud than on dividend payouts to their shareholders

Posted by on in Bankers A Law Unto Themselves
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U.S. Bank Legal Bills Exceed $100 Billion


By Donal Griffin & Dakin Campbell - 2013-08-28T16:02:42Z


The six biggest U.S. banks, led by JPMorgan Chase & Co. (JPM) and Bank of America Corp., have piled up $103 billion in legal costs since the financial crisis, more than all dividends paid to shareholders in the past five years. 


That’s the amount allotted to lawyers and litigation, as well as for settling claims about shoddy mortgages and foreclosures, according to data compiled by Bloomberg. The sum, equivalent to spending $51 million a day, is enough to erase everything the banks earned for 2012.


The mounting bills have vexed bankers who are counting on expense cuts to make up for slow revenue growth and make room for higher payouts. About 40 percent of the legal and litigation outlays arose since January 2012, and banks are warning the tally may surge as regulators, prosecutors and investors press new claims. The prospect is clouding outlooks for stock prices, and by some estimates the damage could last another decade.


“They’ve crossed the point of no return when it comes to the effects that these expenses are going to have on earnings,” said Jeffrey Sica, who helps oversee more than $1 billion as head of Sica Wealth Management LLC in Morristown, New Jersey, and doesn’t recommend bank stocks. “This is going to keep on hurting them, and people will start paying more attention.”


JPMorgan and Bank of America bore about 75 percent of the total costs, according to the figures compiled from company reports. JPMorgan devoted $21.3 billion to legal fees and litigation since the start of 2008, more than any other lender, and added $8.1 billion to reserves for mortgage buybacks, filings show.


More Cases

Five years after the financial crisis shook global markets, banks are facing accusations that they misled buyers of mortgage-backed securities, rigged interest rates used to price loans worldwide and manipulated markets for credit derivatives and commodities. U.S. Attorney General Eric Holder told the Wall Street Journal this month that he’ll bring new cases tied to the financial crisis in the months ahead.


Investigators may be stepping up efforts now that the economy has recovered and the solvency of the nation’s banks is no longer in doubt, according to Daniel Hurson, a former U.S. prosecutor and Securities and Exchange Commission lawyer who runs his own Washington practice.


“There may be a sense that financial institutions have gotten away with a lot and maybe now is the time to catch up,” Hurson said.............”


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  • doyla66
    doyla66 Thursday, 29 August 2013

    I would imagine Nab have racked up about $200K in legal fees taking my husband and I through the court system. Nab look foolish in this instance and have cost their shareholders hundreds of thousands of dollars. This sordid story of fraud started in 2007. Nab just look complete idiots. Our old home is located in rural victoria and of little value. If Nab realise $80K for the property I will be surprised. Nab then have to deduct all the Mortgagee agent fees, Real Estate agent fees, clean up fees etc. so likely Nab will have $40K - $50K to put against the $518K debt. Plus still outstanding is the legal and court fees. "FOOLISH NAB" Duped Shareholders!!!

  • doyla66
    doyla66 Sunday, 15 September 2013

    I agree, Nanna. Sometimes I think Bank staff are like robots. There is no good business sense in hurling good money after bad in trying to get even with a defenseless borrower. Sure legal fees are tax deductible. Let's ask for the Bank levy to be doubled then! That may go someway toward paying for the Banking Inquiry and the Royal Commission.
    Has anyone in the US legal actions looked at the original loan paperwork yet? After all isn't that where Australian banks were taught how to do the fraud?
    No surprises about JPM. Now they're wanting to fleece more money out of Australians and the Australian market to make up for their losses in the US. With our hopeless and helpless regulators hanging out the welcome sign to every financial crook and criminal expect a proliferation of quasi legal FSP conduct, plenty of "catch me if you can" fraudsters, con artists, spruikers, get rich quick schemes and general consumer mayhem. This will continue until a critical mass of elected representatives decide they're willing to restore Australia to decency and Australian standards. We are in need of a serious regulatory overhaul before we're flooded with the riff raff of US Financial rejects looking to make a quick buck.

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