Banks at Court
As reported by ‘The Lawyer‘, Banks may be getting stick about how much tax they (don’t) pay, but perhaps a little sympathy is in order: it sounds like their legal bills are extortionate.
Between 1 July 2010 and 30 June 2011, the UK’s four largest banks spent more time at court than Madame de Pompadour. Almost half of all the High Court cases featuring FTSE100 companies involved either Barclays, HSBC, Lloyds Banking Group or Royal Bank of Scotland.
According to Sweet & Maxwell, which carried out the research, the credit crunch and all the nasty complex financial products that preceded it are to blame. What’s more, actual court cases are just the tip of the very expensive iceberg: for every High Court litigation there are probably dozens of disputes that the banks choose to settle early on.