Banking & Financial Institutions

Wall Street braces for $50 billion mortgage hit

Wall Street thinks the overall price tag for settling with the federal government over the financial sector’s role in the mortgage crisis could be almost $50 billion.

{mosads}The New York Times reports that banks are extrapolating from JPMorgan Chase’s $13 billion settlement late last year to estimate what the broader sector might be on the hook for.

That $50 billion figure – which doesn’t count the JPMorgan settlement – would amount to roughly half what the big banks made in profits in 2012. It would also mean about $15 billion in relief to consumers.