08 Dec 2013

Legal Business magazine banking litigation survey

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The new litigation landscape

Stephenson Harwood LLP and Legal Business magazine have undertaken a joint research project into post-recession banking litigation trends.

Published in the December/January issue of Legal Business, the joint report assesses the views of more than 100 senior decision makers across 35 national and international banks and asset management firms. Key findings include:

  • 59% of respondents said they were involved in more litigation from 2008 to 2012
  • 84% had increased their litigation funding over the past five years
  • 77% said they had budgeted for a similar level of spend over the next 12 months, demonstrating that the number of banking disputes are unlikely to fall as the economy picks up

An active version of the report is available here.Or download a copy of the report.

Responses show that banks feel impending cases will focus on two areas - mis-selling and regulatory investigations, particularly with the growing international coordination of regulators and tougher laws - such as those proposed by the Financial Services Banking Reform Bill and Dodd-Frank.

In addition, increasing fines and public and political pressure for banks to answer for issues such as LIBOR, mean banks are preparing for a potential future characterised by regulator-led, investor-focused and customer-driven litigation.

Banking litigation partner Edward Davis says: "These survey responses resonate with our experience. The banks are under extraordinary pressure from regulators, which is feeding into the looming spectre of large volume and potentially large value claims".

If you would like to discuss the results in more detail, contact our Finance litigation partners:

Sue Millar sue.millar@shlegal.com +44 20 7809 2329
Ed Davis edward.davis@shlegal.com +44 20 7809 2327
Or Regulatory litigation partner:
Tony Woodcock tony.woodcock@shlegal.com +44 20 7809 2349

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