BOE Sees $50 Billion More Misconduct Costs at U.K. Banks: Chart

(Bloomberg) -- In the latest round of stress tests, the Bank of England said it's modeling another 40 billion pounds ($50 billion) of misconduct costs over the next four years, and warned that sum could rise if new issues come to light. In 2015 misconduct provisions eliminated 15 billion pounds of pretax profit, about half the total generated across the industry. The largest outstanding misconduct investigation relates to the selling of toxic U.S. mortgage securities, which analysts estimate could cost Royal Bank of Scotland Group Plc alone more than 8 billion pounds.

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