NEW YORK (AP) — The hot trend in banking now: Betting which one will be next to get sued.
Major U.S. banks start reporting third-quarter earnings Friday. And while some of the cold fear of the scandal-filled second quarter has worn off, and revenue is expected to rise for at least two banks, there will still be ample reminders of the long shadow of the financial crisis. More than four years after the crisis imploded, and banks have yet to shake its consequences.
In just the past two weeks, at least three major legal battles over crisis-era accusations have swirled: Bank of America settled accusations that it misled investors when it agreed to buy Merrill Lynch. The New York attorney general sued JPMorgan Chase over the risky mortgage-backed securities once peddled by Bear Stearns, which JPMorgan now owns. The federal government sued Wells Fargo, charging that the bank improperly received millions of dollars' worth of government insurance payouts for failed mortgage loans. Previously, at the end of August, Citigroup settled accusations that it had misled investors about the depths of its subprime-related dealings.
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