WASHINGTON, D.C.—Stephen Hall, Legal Director and Securities Specialist, issued the following statement in connection with the release today of Better Markets’ Rap Sheet Report and One-Pager:

“Year after year, Wall Street’s biggest banks continue to rip off, discriminate against, and financially endanger their customers. The report we are releasing today shows that Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo (the “Six Megabanks) have racked up more than $9 billion in fines in just the past 15 months. And for those keeping track, and we are, in the last 23 years, the Six Megabanks have been the subject of  490 legal actions  and more than $207 billion in fines and settlements.

“Just a sampling from the report that highlights these examples of the banks’ misconduct:

• In December 2022, Wells Fargo was required to pay more than $2 billion in redress to consumers, as well as a $1.7 billion civil penalty, in a consent order with the CFPB to resolve allegations that the company repeatedly misapplied loan payments, wrongfully foreclosed on homes and illegally repossessed vehicles, incorrectly assessed fees and interest, and charged surprise overdraft fees, along with other illegal activity affecting over 16 million consumer accounts.
• In May 2023, Wells Fargo agreed to pay its shareholders $1 billion to settle a class-action lawsuit alleging the bank and its former leadership misled investors and the public about its response to allegations that the bank was improperly opening consumer accounts without permission.
• In May 2023, Goldman Sachs agreed to pay $215 million to settle a years-long class action lawsuit that claimed the bank discriminated against women employees’ pay, performance evaluations, and promotions.
• In June 2023, JPMorgan agreed to pay roughly $290 million to settle a class-action lawsuit by victims of Jeffrey Epstein alleging that the bank not only ignored but in fact facilitated Epstein’s crimes because he had been a valuable client and helped introduce new wealthy clients to the bank.
• In July 2023, the OCC and the CFPB collected $150 million in penalties and $100 million in disgorgement from Bank of America for illegally charging junk overdraft fees, withholding credit card rewards, and opening fake accounts.
• In August 2023, Citigroup agreed to pay a $2.9 million fine to the SEC to settle charges that the bank’s broker-dealer unit intentionally violated record-keeping requirements with respect to the expenses incurred in its underwriting business.
• In August 2023, Morgan Stanley agreed to pay 5.41 million British pounds—equal to approximately $6.82 million—to the United Kingdom’s energy markets regulator to settle allegations that its traders used banned messaging applications that violated requirements to retain written communications.
• In September 2023, Goldman Sachs agreed to pay the CFTC a $30,000,000 fine for failing to diligently supervise a wide range of its swap dealer activities, and for unprecedented failures regarding swap data reporting and the disclosure of Pre-Trade Mid-Market Mark Disclosures in violation of multiple sections of the Commodity Exchange Act (CEA) and CFTC regulations.

“The Report makes clear that while banks portray themselves as upstanding entities with a primary mission of helping Americans fulfill their financial dreams, in truth they each have a dark side as unrepentant recidivists, breaking virtually every financial law and rule imaginable, often multiple times. The banks’ ongoing, repeated, and unlawful conduct directly impacts the wallets and lives of Main Street Americans, many of whom are vulnerable and simply unable to bear the losses when they are victimized.

“Yet, these Wall Street banks and their executives continue to avoid meaningful punishment, deterrence, or accountability.  Instead, they get sweetheart deals, pay puny fines, and continue their lawbreaking ways as if they were first-time small-time offenders.  Adding insult to injury, the responsible individuals at the banks almost always walk away unpunished, with their pockets stuffed with bonus money. Our Rap Sheet Report confirms that the Six Megabanks are not only too-big-to-fail but also too-big-to-manage, too-big-to-regulate, and decidedly too-big-to-jail.

“The solution is to make the fines against the banks more than just a cost of doing business; hold high-level executives and board members personally responsible; and treat recidivist banks and bankers as the repeat offenders they are.  For average Americans, that means getting the book thrown at them for multiple offenses; it should be the same for the country’s largest banks.”

The full Rap Sheet Report can be found here.

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Better Markets is a non-profit, non-partisan, and independent organization founded to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.