Despite Fines Of $40 Billion, BofA, Citi and JP Morgan Outperform Market

BofA, Citi & JPM--paying a combined $37B to settle claims from Obama's RMBS Task Force--have outperformed the market.pic.twitter.com/KgnEkxX8JN

Alan: Maybe they should be fined more often - just for prosperity's sake.

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Do these settlements normalize banks' bad behavior? "The constant drumbeat of settlements really does normalize misbehavior: If every bank is constantly settling charges of mis-selling mortgages, then mis-selling mortgages can't really be that bad, can it? If every bank is constantly paying billions of dollars in fines, then paying billions of dollars in fines becomes less shameful. And if every bank is fined over and over again for the same conduct, then the attitudes of the bankers will shift." Matt Levine in Bloomberg View.