Biggest corporate fines in 2013

Which companies were fined the most this year?

As two banks receive hefty fines this week, we take a look at the world’s biggest corporate fines of 2013.

1. JP Morgan Chase - $13bn and $1.12bn

The $13bn in fines was issues to wrap up a number of investigations into the bank, largely into the banks alleged misrepresentation of bundles of toxic mortgages.

After the London Whale trading scandal, JP Morgan was forced to pay $1.12bn to regulators in a number of fines. The scandal happened last year when traders - including one of Britain’s highest paid bankers Bruno Iksil - bet huge sums on complex financial instruments and covered up losses when trades went wrong and problems escalated.

2. Rabobank - $1.07bn

Dutch lender Rabobank was fined for its part in the Libor scandal after 30 staff were involved in “inappropriate conduct”. The scandal involved the suspected rigging of the London interbank offered rate (Libor), an interest rate used in contracts worth trillions of dollars globally.

3. RBS - $612m

The Royal Bank of Scotland was also implicated in the Libor scandal. The money to pay the fine came out of future bonuses and from clawing back paid bonuses.

4. Goldman Sachs - $330m

Goldman Sachs was forced to pay a large fine after not following proper procedures for foreclosure – the sale of an asset to balance a secured loan. The bank was forced to compensate hundreds of thousands of mortgage customers for foreclosure abuses.

5. JP Morgan - $285m

The firm was accused of manipulating electricity markets in the US. Traders allegedly created a complex set of rules that helped set the cost of electricity in California and the Midwest and the bank was forced to pay a fine and surrender its profits.

6. Morgan Stanley – $227m

Morgan Stanley was also fined for foreclosure abuses at the same time as Goldman Sachs. The pair paid compensation to 220,000 borrowers.

7. This week’s fines

This week, two British banks were forced to pay a combined £90m ($148m) in fines to UK regulator the Financial Conduct Authority.

RBS was fined a FCA-record £62m for breaching US sanctions in dealing with clients in Iran, Sudan, Burma and Cuba.

Lloyds Bank was fined £28m after being found to have “serious failings” in its sales practices.


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