Reputation damage and modelling reputation risk

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During the past two years, the financial sector has seen its fair share of reputational events. In 2013, JP Morgan alone paid out upwards of $14.8 billion in fines and settlements. This included a huge $13 billion settlement agreed with the US Department of Justice in order to settle federal and state civil claims arising from residential mortgage-backed securities (RMBS) marketed by JP Morgan and the two companies it took over in the lead-up to the financial crisis – Bear Stearns and Washington

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