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$13 billion settlement

Banks must prepare for escalating costs of legal problems

"Anyone who thinks the current lull in multibillion-dollar bank settlements means the payouts have peaked should talk to the US Federal Reserve.

"Last year, a protracted and damaging negotiation with the Department of Justice ended with JPMorgan Chase paying $13bn to settle allegations that it mis-sold mortgage-backed securities. Citigroup, Bank of America and Wells Fargo also paid out more than $1bn each.

"So far this year, the penalties have been fewer and more modest.