In this article we are going to list the 5 biggest corporate fines in history. For a detailed coverage of this topic and a more comprehensive look, please head on over to the 15 biggest corporate fines in history.
5. BNP Paribas
BNP Paribas is a French bank, which attracted the attention of the US Department of Justice because it violated US regulations, by laundering money from Cuba, Iran and Sudan of more than $100 billion, even though they were sanctioned companies. The bank ended up paying $8.9 billion, which is the highest fine paid for violating US sanctions by a distance.
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4. JP Morgan Chase
The biggest bank in the United States was also heavily involved in the 2008 financial crisis, and investigations into the bank’s actions began back in 2013 by the Department of Justice. The company was found guilty in its role in selling mortgage backed securities as if they were fine, and was fined $13 billion as a result, of which $9 billion were penalties and fines, while the rest was consumer relief.
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3. Volkswagen
Volkswagen was the biggest car manufacturer in the world until 2020, when Toyota Motors (NYSE:TM) overtook it amidst both companies reducing production due to the pandemic. The company was investigated in 2015, by the US Environmental Protection Agency, which found that the company had manipulated emission tests to show that they met US standards, when in reality the emissions were several times higher. The company ended up having to pay $14.7 billion for its role in the scandal, while it has cost the company more than $33 billion overall.
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2. Bank of America (NYSE:BAC)
Bank of America is one of the biggest financial institutions in the entire world, and the second biggest in the United States. It operates in all 50 states and 40 other countries as well, even though it has attracted a lot of controversy over its role in the 2008 financial crisis which I discussed in the intro earlier. The Department of Justice ordered the company to pay $16.65 billion in 2014 over its role in the Great Recession, of which $7 billion was categorized as consumer relief while the remaining $9.65 billion was categorized as penalties to be paid to the federal government as well as the states. At the time, it was the largest corporate fine in history.
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1. BP (NYSE:BP)
Topping the list of the 5 biggest corporate fines in history is of course BP. The oil company is among the biggest companies in the entire world, and was responsible for the biggest oil spill in history as well, which is now known as the Deepwater Horizon oil spill. The incident took place over a decade ago in 2010, where 2.9 million barrels were spilled and efforts made to contain the spread of the spill failing. The spill continued for months, and devastated the environment in the region, despite extensive cleanup efforts which took place. Marine life died at record rates and in 2013, it was reported that infant dolphins died six times faster than the normal rate, while many other studies found stunted growth and deformities in marine life as a result of the spill, showcasing just how devastating it was.
BP was blamed for negligence in the ensuing investigations over the oil spill, and ended up paying more than $4.5 billion just for the criminal charges, which is the largest penalty ever for criminal charges in the history of the United States. In July 2016, BP was ordered to pay a historic amount worth $20.8 billion, which as of now, is still the highest corporate fine in history. Overall, as of 2018, penalties, charges and clean up costs had resulted in the company spending at least $65 billion, and yet it is still easily one of the biggest companies in the world by revenue.
See also: 15 biggest public companies in the world heading into 2021 and 15 largest biotech companies in the world
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