By Chris Isidore@CNNMoneyOctober 30, 2013: 6:28 AM ET
NEW YORK (CNNMoney)
The government is going hard after misbehaving banks, collecting billions of dollars more in fines this year than it did last year.
Banks have agreed to fork over more than $17 billion in settlements with U.S. regulators so far in 2013. That's up from a little over $10 billion in 2012. And that doesn't include the $8 billion that JPMorgan Chase may get hit with soon.
Out of the $17 billion total, almost $9 billion will go to homeowners who were victims of illegal foreclosure practices. Most of the rest of the moneywill end up in the Treasury Department's general fund, whichpays for everything from national parks to air traffic controllers and military forces.
There is one wrinkle though - virtually all the fines are tax deductible. So when the feds collect a fine, whether it's $1 million or $1 billion, the bank will have a lower tax bill. The upshot: Treasury isn't really collecting all of that fine money.
Here's a breakdown of the banking industry's misdeeds and the big payouts that have resulted:
JPMorgan Chase(JPM) was already writing big checks this year, before the latest settlement hit. Over the last five weeks, it agreed to pay $800 million to U.S. regulators to settle charges related to last year's "London Whale" trading debacle.
Some of the biggest payouts this year came as mortgage servicers agreed to settle charges of improper foreclosure practices. Eleven institutions agreed to settlements totaling $8.8 billion, including Bank of America(BAC), Citigroup(C) and Wells Fargo(WFC).
The scandal surrounding the London Interbank Offered Rate, or Libor, has generated yet more fees for the U.S. government. It first came to light in June of 2012 that numerous banks were manipulating the rate to make money on their trading desks. British bank Barclays(BCS) and Swiss bank UBS paid out nearly $2 billion in fines.
In February, Royal Bank of Scotland(RBS)agreed to pay $475 million, and the U.K.-based brokerage ICAP agreed to pay the Commodities Futures Trading Commission $65 million in a similar matter.
On Tuesday, Dutch lender Rabobank agreed to pay $800 million for Libor violations.