DOJ reportedly seeks $10B from BNP Paribas

At issue are charges BNP Paribas (BNPQY -4%) for years evaded U.S. sanctions against Iran and other sweetheart countries, and the $10B the WSJ reports as being sought by the DOJ would represent one of the largest-ever fines against a bank.

BNP reportedly is looking to pay far less than that, and a figure of around $8B has been tossed about, but sources close to the bank deny offering an amount that high. Prosecutors also want a guilty plea and point to the muted market reaction over Credit Suisse doing so earlier this month.

Another - maybe more important - sticking point in negotiations is whether BNP will temporarily lose the ability to move money in and out of the U.S. BNP executives note the bank has many businesses - including its investment bank and corporate-finance unit - which would suffer from this restriction, possibly destabilizing the overall bank.

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Comments (4)
  • citigroup regnum
    , contributor
    Comments (94) | Send Message
    Probability that BNP Paribas as French business entity will seek for some kind of protection from French Government and European Commission is relatively high. U.S. DOJ has to harmonize its intentions with U.S. State Department and French and European counterparts. Relatively important element is the fact that this is the case about U.S. sanctions against Iran and not about UN ones. BNP Paribas as banking corporation headquartered in France and EU factually is not obliged to obey to U.S. sanctions against Iran if French Government eventually allowed continuation of operations...
    29 May 2014, 04:06 PM Reply Like
  • baultar
    , contributor
    Comments (5) | Send Message
    Funny how Holder will go after overseas banks but won't go near a US bank wonder who has him bought and paid for?
    29 May 2014, 05:57 PM Reply Like
  • deercreekvols
    , contributor
    Comments (9712) | Send Message
    Another example of the US trying to force non-US companies to follow US rules/sanctions.
    Seems like the $30B + in fines JPM has paid soothed the DOJ long enough to move on to this round of fines.
    29 May 2014, 06:09 PM Reply Like
  • mhrkim
    , contributor
    Comments (5) | Send Message
    Wow, I wonder what the final bill will end up being.
    31 May 2014, 06:01 AM Reply Like
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