Report - Barclays and RBS face huge additional legal costs

Gavel

Europe’s banks face a further $50bn of legal costs as they catch up with their U.S. counterparts, according to analysts at Morgan Stanley.

Bloomberg News reports that European firms, which have set aside or paid out more than $80bn since 2009, face about $130bn of litigation and settlement costs in total, analysts led by Huw van Steenis wrote in a note to clients today. U.S. firms, which have so far made provisions for or paid out $125bn, may have only to set aside a further $25bn, the analysts said.

Barclays and Royal Bank of Scotland face the largest increases in legal costs among European banks, van Steenis wrote. Barclays will have about $11.9bn of additional legal costs through 2016, compared with the $10bn it’s already set aside or paid out since 2009. RBS’s legal bills may rise by $11.3bn over the same period from $11.7bn, he added.

To access the complete Bloomberg News article hit the link below:

European Banks Seen Facing $50 Billion More in Legal Expenses

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