U.S. Banks In “Regulatory Spiral”

The roll-out of Dodd Frank and aggressive legal action by Federal regulators is alarming bank industry executives. “We are in a period of “regulatory spiral,” said Stephen Cutler, general counsel at JPMorgan Chase, at a recent event. His company’s recent $13 billion settlement with the Department of Justice is likely to serve as a template for lawsuits federal regulators have said will come early next year. Cutler’s sentiments were echoed by top lawyers of other financial institutions, with some noting that a lack of communication among federal agencies was leading to costly duplicative fines.