Now is this bad bank culture. More examples this morning of what "bad bank culture" really is, and its costs to the community, shareholders, customers and employees (not to mention to taxpayers). Goldman Sachs overnight finalised a deal to pay US$5.06 billion to settle claims that it misled mortgage bond investors during the financial crisis. The deal first emerged in January and stems from the firm’s conduct in packaging, securitising, marketing and sale of residential mortgage-backed securities between 2005 and 2007. (The Big Short backfires?) Goldman Sachs, which reports its March quarter results next week, adds its name to a parade of shame on subprime mortgage rorts. The US Justice Department has reached settlements with five other major financial institutions since 2012: J.P. Morgan Chase (US$13 billion), Bank of America (US$16.6 billion), Citibank (US$7 billion) and Morgan Stanley (US$3.2 billion). Adding in the Goldman Sachs settlement, that’s a grand total of nearly US$46 billion (around $70 billion). This settlement is separate to one announced last Friday night by Wells Fargo, America’s biggest housing bank, and considered to be the best managed. It agreed to pay the US government US$1.2 billion for hiding most of its bad loans for 15 years up to the 2008 housing market crash. -- Glenn Dyer

It’s a UK disease as well. A London-based think tank has estimated that Britain’s 10 largest retail banking scandals have cost the sector 53 billion pounds in fines and lawsuits over the past 15 years. That is close to $100 billion. The New City Agenda report found this huge cost had eroded shareholder value and damaged reputations. The report found that the misconduct charges have had a “devastating impact” on banks’ profitability, significantly reducing dividend payouts to shareholders: