Posted on Thursday, January 27, 2011
A recent report by Institutional Risk Analytics (IRA) says Bank of America, and Wells Fargo are two of the most sued financial service firms in the United States.
IRA says that mortgage exposure is what is causing these two banks and others in similar situations to be embroiled in so many federal legal cases. Not only that, the California-based firm mentions the added burden many of these companies are also facing in litigation that will not reach federal court, such as cases involving foreclosure practices.
The IRA report found that last year Bank of America was sued in federal court 3,285 times and Wells Fargo was sued 3,092 times, noting that these cases can garner more than $1 million in settlement costs.
According to the report, Citigroup, JPMorgan, Goldman Sachs, and Morgan Stanley have many fewer lawsuits.
Only US Bancorp has a large portion of mortgage exposure but manages to avoid a proportionally large amount of lawsuits, last year experiencing only 59 federal litigations.
By: Joy Leopold, DS NEWS