US banks 'close to $10bn regulatory settlement'

31 December 2012

A group of 14 US banks are close to agreeing a collective settlement worth around $10 billion with regulatory bodies for breaching codes of practice, it has emerged.

Insiders with knowledge of the matter have told the New York Times today (31 December) that this agreement would end the possibility of the government evicting financiers from the country for issues such as charging excessive fees.

It is expected that around 40 per cent of this total sum will be granted to people who have lost their homes due to foreclosure abuses - a marked improvement on the previous aid instalment of $1.5 billion made through a different pact in February.

The remainder of the money is intended to be used to assist individuals who are finding it tough to meet their required repayment charges.

Lynn Drysdale of Jacksonville Area Legal Aid told the news source the latest settlement is a "victory for consumers".

By Asim Shah

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