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Home Finance New research has revealed the banks and brokers that have been hit with the biggest financial penalties and the most commonly fined offences.
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New research has revealed the banks and brokers that have been hit with the biggest financial penalties and the most commonly fined offences.

by Jessica Weisman-Pitts
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The study by BrokerChooser analysed fines imposed upon companies in the financial services sector from 2000 to the present day to reveal the most heavily fined banks and financial offences.

You can view the full research here: https://brokerchooser.com/education/news/investment-fines

Top Three Biggest Banking Fines: 

  • Coming in first, The Bank of America actually accounts for half of the top ten biggest fines of all time, but by far the biggest was the one that they incurred in 2014, for knowingly selling toxic mortgages to investors, a big contributor to the financial crisis of the late 2000s.
  • Another of the big US banks, JPMorgan Chase takes second place, with JPMorgan Chase being forced to pay $13bn in 2013 for toxic securities abuses in the time of the financial crisis.
  • Swiss investment bank UBS comes in third place after being fined $11.15bn for investor protection violation offences in 2008.
Rank  Bank  Fine Year 
1 Bank of America $16.65bn 2013
2 JPMorgan Chase $13bn 2014
3 UBS $11.15bn 2008

 

The Three Most Fines Banks: 

  • In first place again, The Bank of America is the most heavily fined bank clocking up a total of over $82bn across 251 different fines over the past 20 years.
  • As was the case with one-off fines, JPMorgan Chase takes second place behind Bank of America, although by some distance, with fines totalling $35.9bn.
  • Coming in third, the Citigroup investment bank and financial services corporation has been fined over $25bn across 150 different fines, with the biggest of these being $7.1bn.
Rank  Bank No. of Penalties Total Amount Penalised 
1 Bank of America 251 $82.9bn
2 JPMorgan Chase 179 $35.9bn
3 Citigroup 150 $25.5bn

 

The Most Heavily Fined Offences: 

  • The offence that saw the heaviest penalties overall, racking up $97bn in fines, was ‘toxic securities abuses’ which refers to the sale of investments that are either difficult or actually impossible to sell on, due to demand for them collapsing.
  • In second place, there were over 1,400 fines that added up to over $68 billion for breaches of the Investor Protection Act.
  • In third place, 83 fines were handed out for offences within the mortgage sector. They added up to over $56 billion, meaning that each fine was worth an average of over $680 million.
Rank  Offence  Total Fined for Offence 
1 Toxic Securities Abuses $97bn
2 Investor Protection Violation $68bn
3 Mortgage Abuses $56bn

 

 

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Jessica Weisman-Pitts

Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.