Money is being knocked out of banks like a papier-mâché piñata. A piñata that’s been walloped by a proverbial bat labelled Legal Costs, over and over again.
But we’re not talking chocolate money in this game. Not long after US banking giant JP Morgan reported a quarterly loss after taking a $9.2bn (£5.8bn) hit in legal fees, Deutsche Bank reported a significant drop in its third-quarter profits after setting aside €1.2bn (£1bn) to cover legal costs. For the latter that brings Deutsche’s total reserves for litigation to €4.1bn, so a piñata might be needed for the person opening that bill.
Elsewhere, banks are looking to save the coins by reviewing their use of external firms. Japan’s largest bank, the Bank of Tokyo-Mitsubishi UFJ, is in the closing stages of establishing its first ever UK legal panel, while Citigroup will announce details of its eagerly-awaited revamped panel early next month. The banking giant is expected to show some existing advisers the door.
Back to that piñata.
Also on TheLawyer.com:
- Cyber Security in-house interview: a warning from the watchdog as Information Commissioner’s Office say lawyers are among the most vulnerable to information breaches.
- PA Group, the parent company of the UK Press Association, has named The Economist’s senior legal counsel Stephen Godsell as group general counsel.
- At first glance, the transfer of a 50-strong Aviva-dedicated personal injury team from Greenwoods to DWF seemed strange. As they head off to DWF, are they that sadly missed?