Jenice Malecki of Malecki Law will be appearing on Fox Business News at 12pm today, speaking with Dennis Kneale about whether or not banks, such as JP Morgan, should be getting amnesty from regulators.
In the fallout from the financial crisis, banks, such as JP Morgan have seen their legal fees related to defending complaints from both customers and the SEC, along with other regulators, rise substantially. JP Morgan shocked many in the marketplace when it recently revealed that its “litigation reserve” was $23 billion, and that it had paid out roughly $8 billion in recent settlements and judgments.
In light of this revelation, some have called for amnesty to be provided to large banks, in an effort to relieve them of these substantial legal burdens and jumpstart the markets by freeing up large reserves of capital.
Unfortunately, many of these proponents overlook the value provided to the marketplace by the punitive measures imposed by the SEC and other financial market regulators.
Ms. Malecki will discuss how relieving these banks of their liabilities for past bad acts would eliminate accountability from the marketplace and only serve to embolden the bad actors in the future. Accountability is necessary for the efficient operation of the marketplace and consumer protection.
Americans cannot afford another financial crisis.