|European Banks Face $52bn in Lawsuits|
Royal Bank of Scotland and Barclays may have to pay some of the biggest bills from an estimated $52bn in fines and other litigation costs facing Europe's banks in the next two years.
US and European banks have paid $230bn in litigation costs since 2009 and could pay out another $70bn by the end of 2016, mostly from the 20 largest European banks. European banks have paid out about $104bn so far and the $52bn they still have to pay, much of it related to foreign exchange trading and US mortgage mis-selling, could restrain how much they pay in dividends, the analysts said.
The fines and compensation in the last five years are related to practices that include alleged manipulation of benchmark interest rates and mis-selling of mortgages in the United States and insurance in Britain.
Regulators fined six banks $4.3bn in November after traders tried to manipulate foreign exchange markets.
RBS, majority owned by the UK government, will have to pay another $10.6bn on top of the $12.6bn already paid or provisioned for. Barclays could have to pay another $8.3bn, HSBC $7.7bn, Lloyds $6.1bn and Germany's Deutsche Bank $5.1bn.
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Published on our website on Jan.14, 2015