Banking Litigation Insight: ‘The worst case scenario is £200m – litigation is containable’

Banking Litigation Insight: ‘The worst case scenario is £200m – litigation is containable’

An unprecedented wave of global enforcement has pushed risks facing banks to once unthinkable proportions. In the follow-up to our banking litigation Insight with Stephenson Harwood, bank counsel discuss managing the biggest risks in global business. Alex Novarese reports.

‘A head of litigation at a bank was saying to me the other day: “I don’t really care about [civil litigation]. If a counterparty has a claim, even a big claim, you instruct your litigators – it’s expensive and you try to control the cost but it’s just a bit of litigation. Worst-case scenario is we may have to write a cheque for £200m but we know the limits of the problem. We don’t really care. It’s containable. It’s predictable.” You would have never heard someone saying something like that ten years ago. But all these issues about reputation, regulation and unquantifiable fines – it’s such a mess. You know you have got to do something about it but you don’t know where it will go.’

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Where the bodies lie – the risk report 2014

Where the bodies lie – the risk report 2014

 

While the regulatory upheaval of recent years has calmed down, our annual risk report finds law firms facing many threats lurking around the corner

In our seventh annual risk management and professional indemnity survey with broker Marsh, we asked law firms if they felt they had got to grips yet internally with the Solicitors Regulation Authority (SRA)’s outcomes-focused regulation (OFR) regime. One firm said: ‘Yes but it is continuous improvement so it can never be “completed”.’

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