Banks will need to price in the cost of increasing regulation
Despite US President Donald Trump’s pledge to roll back the Dodd-Frank Act, regulation is more of a ‘permanent rise in sea level’ than a ‘flowing tide that will ebb’
London — Banks globally have paid $321bn in fines since 2008 for an abundance of regulatory failings from money laundering to market manipulation and terrorist financing, according to data from Boston Consulting Group. That tally was set to increase in the coming years as European and Asian regulators caught up with their more aggressive US peers, who had levied most of charges to date, BCG said in its seventh annual study of the industry published on Thursday. Banks paid $42bn in fines in 2016 alone, a 68% rise on the previous year, the data showed. "As conduct-based regulations evolve, fines and penalties, along with related legal and litigation expenses, will remain a cost of doing business," analysts led by Gerold Grasshoff wrote. "Managing those costs will continue to be a major task for banks." The era of ever-increasing regulatory requirements was here to stay, BCG said, despite US President Donald Trump’s pledge to roll back the 2010 Dodd-Frank Act that reshaped US banking i...
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