Cost of Litigation for Firms Totals $178B Since Crisis

Cost of Litigation for Firms Totals $178B Since Crisis

For most banks, litigation costs have become so ubiquitous that most companies simply see these expenses as just another cost of doing business.

Since the financial crisis, financial institutions in the U.S. and Europe have paid out $178 billion in litigation costs, according to data compiled by the Boston Consulting Group. U.S.-based banks have borne the bigger burden, footing about two-thirds of the bill, much of which stems from fines and settlements from mortgage-related claims during the financial crisis. 

At times, these sanctions threaten the sustainability of banks and certain business models, BCG reports. Adding pressure to firms is the increasingly complex regulatory environment. Global financial regulators issue more than 100 updates issued daily. 

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