In the following video, Fool.com contributor Jessica Alling talks about the common misconception that fines levied against the big banks aren't an effective form of punishment for bank misbehavior. While the recent large settlements to come out of Bank of America (BAC 0.64%), JPMorgan Chase (JPM 0.56%), and Citigroup (C 2.19%) for $5.2 billion, $0.9 billion, and $1.3 billion, respectively, for damages they caused during the subprime mortgage lending crisis had a definite impact on the banks' bottom lines, Jessica tells us about one more tangible way these settlements hurt the banks: by shaking investor confidence.