From JPMorgan Chase’s $13 billion settlement over mortgage securities to lawsuits brought by bondholders, a barrage of litigation has been raining down on Wall Street banks, but the banks are not disclosing a number that is crucial for assessing their ability to deal those legal costs, the New York Times DealBook blog reported today. Additionally, the regulator that has sway over companies’ disclosure practices has not called on the industry to reveal this important figure so that investors can weigh the institutions’ health. The banks are choosing to settle lawsuits for their roles in shoddy mortgage practices before the financial crisis of 2008, paying out multibillion-dollar sums to make amends. The size of JPMorgan’s settlement with the Justice Department, struck late last year, shocked many in the industry. Now, other large banks — in particular, Bank of America, with its enormous exposure to sour precrisis mortgages — are expected to announce painful deals with the government in the coming months.
