KBW: Global banks face additional $100B legal tab

Litigation has cost global investment banks $44B since the start of last year and $13.8B alone in the last quarter, says the team at KBW, and the civil claims could drag on for another decade and cost another $100B. The probes into interest rate and foreign exchange manipulation are likely to sum to the area of $72B, and still un-resolved mortgage issues could add another $24B.

As loud as that $100B sounds, it would be a notable slow-down from the run rate of the past 22 months, says KBW's Andrew Stimpson, who adds litigation costs are now "part of the fabric of investment banking costs."

Everybody's favorite legal target, JPMorgan (JPM) is KBW's favorite bank pick as it looks to start 2014 "with a cleaner slate" than its peers (SocGen SCGLY is also a top pick).

Related ETFs: IAI, KCE, KBWC

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