A recent Bloomberg story, “U.S. Bank Legal Bills Exceed $100 Billion,” reports that since the financial crisis the six biggest U.S. banks, led by JP Morgan Chase & Co. and Bank of America Corp. have piled up $103 billion in legal costs since the financial crisis, more than all dividends paid to shareholders in the past five years.  That’s the amount allotted to lawyers and litigation, as well as for settling claims about shoddy mortgage and foreclosure, according to data compiled by Bloomberg.

About 40 percent of the legal and litigation outlays arose since January 2012, and banks are warning the tally may surge as regulators, prosecutors and investors press new claims.  JP Morgan and Bank of America bore about 75 percent of the total costs, according to the figures compiled from company reports.  JP Morgan devoted $21.3 billion to legal fees and litigation since the start of 2008, more than any other lender, and added $8.1 billion to reserve for mortgage buybacks, filing show. 

The data were compiled from quarterly reports from the Federal Reserve, the SEC and investors covering January 2008 through June 2013.  Some of the banks distinguished between litigation costs and legal fees, which could include routine expenses of running a business, such as drawing up contracts, rather than lawsuits.  Still, most outlays at JP Morgan, Bank of America and Citigroup were tied specifically to litigation, the filings show.