Page 71 - Flip Banks TG

was verified by S&P Global Market Intelligence” (1) it is

noticeable that banks “have been fined $243 billion since the

financial crisis…… Most of these fines have been assessed

for misleading investors about the underlying quality of the

mortgages they packaged into bonds during the housing

bubble.” (2)

However, “It’s important to note that the banks don’t just

send a check for their fines to federal and state

governments. Many times they get credit by making loans
and supporting debt restructuring. For example, a Goldman

Sachs commitment for $1.8 billion of loan forgiveness and

financing for affordable housing was considered as part of a

$5.1 billion “fine” the bank had to pay.” (2)

Bank fines appear to be coming to the tail end of their

imposition and although misdemeanours will still occur they

are hopefully not going to be on the scale of the post crisis

period.

“The KBW report said it expects the fines to subside, both

because of the time elapsed since the mortgage crisis as

well as the deregulatory bent of the Trump administration.

But the report said the Wells Fargo sanction, as well as levies

against Rabobank and U.S. Bank over bank secrecy and anti-

money-laundering violations, shows that the risk hasn’t

disappeared.” (2)