In a closed-door meeting at a Manhattan mansion, executives outlined changes to controversial software that was implicated in two crashes.Aerospace & Defenseread more
Current and former Tesla employees working in the company's open-air "tent" factory say they felt pressure to take shortcuts to hit aggressive Model 3 production goals,...Technologyread more
Minutes from the Reserve Bank of Australia's monetary policy meeting in July showed the central bank was ready to adjust interest rates if required.Asia Marketsread more
President Donald Trump and the RNC are picking up key supporters in the business community who did not back him as a candidate in 2016.2020 Electionsread more
Amazon workers in Minnesota and Germany are striking as Prime Day kicks off, in a stand against working conditions and wage practices. The action in Minnesota represents the...Retailread more
Treasury Secretary Steven Mnuchin is raising red flags ahead of Facebook's proposed cryptocurrency launch.Marketsread more
Epstein is accused of sexually exploiting dozens of underage girls from 2002 through 2005 at his New York and Florida residences. He is a former friend of Presidents Donald...Politicsread more
When you think of Prime Day, you might be thinking about deals on Instant Pots and Amazon Echo devices — not half-off dresses and designer heels. But the market for apparel...Retailread more
David Marcus, the head of Facebook's digital currency project, said the company expects Libra will drive more advertising revenue for the company.Technologyread more
Some White House officials expect the Cabinet secretary, who has known the president for years, to depart as soon as this summer.Politicsread more
"The important thing is that you shouldn't try to hit homeruns this week, because you're much more likely to end up striking out," Jim Cramer says.Mad Money with Jim Cramerread more
The fallout from the subprime mortgage crisis continues to plague U.S. banks, according to Standard and Poor's, with the ratings agency estimating billions of dollars in extra litigation fees may hit major lenders.
In the lead-up to the financial crash of 2008, U.S. banks packaged and sold residential mortgage-backed securities - a type of financial instrument that contained mortgages and home-equity loans of varying risk. Once homeowners in the U.S. started defaulting on their loans in record numbers in 2007, the market for mortgage backed securities collapsed as it became impossible to tell whether the debt in the security was high- or low-risk, sparking the global financial crisis.
This month JPMorgan agreed to pay $13 billion to settle charges that it misrepresented the quality of mortgages it sold in these securities. Meanwhile, the legal wrangling over Bank of America's proposed settlement of $8.5 billion is yet to be completed. S&P now believe that more banks could be set to face extra payouts.
"We estimate that the largest banks may need to pay out an additional $55 billion to $105 billion to settle mortgage-related issues," Stuart Plesser, a credit analyst at the ratings agency said in a press release late on Tuesday.
The banks included in the report are Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo. These banks were not immediately available for comment when contacted by CNBC. Citigroup declined to comment when contacted.
Investors claim that the securities sold have breached "representations and warranties" that had been in place to ensure certain standards and conditions for the financial instruments.
Plesser added that the banks should be able to able to withstand the ramifications of legal issues having paid or set aside more than $45 billion and incurring roughly $50 billion in combined legal expenses.
"We already incorporate heightened legal issues into our ratings, and we currently don't expect legal settlements to result in negative rating actions for U.S. banks," he said, but iterated that it still has a negative rating on Bank of America.
By CNBC.com's Matt Clinch. Follow him on Twitter