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 0.27%), JPMorgan Chase (JPM 0.30%), and Citigroup (C 0.89%) 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.
1 Big Factor That's Hurting Your Bank Stocks
By Jessica Alling and austin smith – Jan 22, 2013 at 9:18PM
NYSE: C
Citigroup
Market Cap
$187B
Today's Change
(-0.89%) $0.90
Current Price
$100.71
Price as of November 4, 2025 at 2:36 PM ET
Fines hurt banks, but not the way you think they do.
About the Author
After receiving the prestigious, if not tongue-in-cheek, "Future Bloodsucker of America" award for winning a stock market challenge in middle school, Jessica knew that her future lay in finance. But when her Finance degree's P/E ratios and other metrics weren't enough, she added a degree in English to her repertoire. Though some questioned the combination, her work with the Fool has clarified the method to her madness to those that couldn't see the connection before. Oh, and she still has that award framed in her office.