“British Companies put 27 percent Less aside for Court Cases.” British companies set aside 27 percent less money in 2017 to pay for possible legal claims and legal fines, according to the reports on Monday.
These are companies that are included in the FTSE 100.
Reported, that the wave of scandals and related conflicts that followed the financial crisis has now reached its peak.
As an outcome, companies dare to reserve their money for other things.
Over the past decade, significant fines have been forced on companies,
for example for manipulating interest rates or selling financial products in the wrong way.
In 2016, FTSE 100 companies set aside 34 billion pounds for this.
In 2017, this amount had dropped to 24.8 billion pounds, according to an analysis of company reports.
In 2017, banks set aside around 60 percent of the total amount, which amounts to 14.8 billion pounds.
According to lawyers, despite the reduction in the number of cases,
it would still be a good idea for large companies to hold back substantial amounts of money.