This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

CCMR Statistical Release: Public Settlements And Regulatory Penalties Increase Significantly In 2012 And 2013

CAMBRIDGE, Mass., March 15, 2013 /PRNewswire/ -- Data released today by the Committee on Capital Markets Regulation reveal a dramatic jump in public settlements and regulatory penalties imposed on financial institutions in 2012 and 2013, and the liability of financial institutions may grow further in the wake of the recent LIBOR manipulation scandal. The rise in settlements and penalties is of a magnitude such that the business, financial condition, and results of operations of certain financial institutions may be materially affected.




U.S. and international regulators have to date levied a combined total of $2.6 billion in fines against financial institutions as a result of the LIBOR manipulation scandal alone. Over $21 billion in public settlements and fines have been imposed during just the first six weeks of 2013, including over $9 billion in settlements between regulators and twelve banks regarding alleged mortgage foreclosure wrongdoing. In addition, one bank reached an $11.6 billion settlement with Fannie Mae over claims related to soured mortgage-backed investments.

The Committee has also found that over the past five years, total public class action settlements (including class action settlements of lawsuits brought by government entities, e. g., state attorneys-general) and regulatory penalties against financial institutions have increased in value from $431 million in 2007 to over $30 billion in 2012 (Chart 1).

While a substantial portion of the 2012 figure consists of a $25 billion mortgage settlement between state attorneys general and the federal government with five major financial institutions, total penalties excluding the settlement have increased ten-fold since 2007. In addition, the SEC has reached settlements related to auction rate securities with nine firms, requiring those firms to provide $67 billion in liquidity to customers since 2008.

The absolute level of regulatory penalties increased from nearly $80 million in 2008 to $4.8 billion in 2012 (Chart 2). Fines also constitute an increasing proportion of total regulatory penalties, their share increasing from 19% in 2008 to 87% in 2012.

The Committee on Capital Markets Regulation is an independent and nonpartisan 501(c)(3) research organization dedicated to improving the regulation of U.S. capital markets.

For further information: C. Wallace DeWittResearch DirectorCommittee on Capital Markets Regulation

Rimjhim DeyPublisez PR (718) 622 7570

SOURCE Committee on Capital Markets Regulation

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,805.82 +27.67 0.16%
S&P 500 2,072.96 +11.73 0.57%
NASDAQ 4,773.0150 +24.6190 0.52%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs