Photo Credit: Chase Kindberg (via Flickr)
The latest, in a series of reports on misconduct in the banking sector produced by Quinlan & Associates estimates that as of 2009, banks have lost roughly $850 billion in profits due to subprime mortgage write-downs, rogue trading practices, failures in anti-money laundering, countering terrorist financing compliance (AML/CFT), and other high risk or unlawful behavior. Quinlan & Associates suggest the amount of misconduct related fines for the largest banks is not likely to subside but rather continue to increase from $324 to $400 billion by 2020.
None of this comes as a surprise considering the media coverage of BNP Paribas and HSBC’s involvement in international money laundering schemes and the WellsFargo false account scandal. It is somewhat curious that the growth in misconduct related losses run parallel to an increase in compliance and control investments – which have doubled since 2009, amounting to approximately $173 billion. Read More...