Jul. 1, 2014, 1:59 AM
- After pleading guilty to two criminal charges of falsifying business records and conspiracy, BNP Paribas (BNPQF) is settling its "sanctions lawsuit" for $8.9B. As part of the settlement, the bank will also terminate 13 senior execs.
- BNP Paribas has also agreed to suspend parts of its U.S. dollar clearing operations for one year. The ban will start on January 1, 2015, and will greatly impact the bank's oil and gas finance business.
Jun. 30, 2014, 4:30 PM
- As has been rumored for awhile, BNP Paribas (BNPQF) has plead guilty to two felony counts and agreed to pay $8.8B in fines to settle a U.S. probe into dealing with countries under sanction, reports the WSJ.
- Whether or not BNP will be suspended from performing dollar clearing services - potentially a big hurt on its business - has not yet been reported.
- Previously: NYT: BNP Paribas expected to plead guilty, pay $8.9B
Jun. 30, 2014, 1:50 AM
- The BNP Paribas (BNPQF) board has approved an $8.9B settlement, following the investigation of U.S. authoritites into $30B of transactions which avoided economic sanctions. More than a dozen employees are also expected to leave the bank as a result of the negotiations.
- BNP is expected to plead guilty to the charge today, and announce the hefty settlement. With regards to the suspension on BNP's U.S. dollar clearing service, it was reported that the bank has won a stay of execution, postponing it for six months.
- Last week, BNP Paribas stated plans to cut its dividend and sell billions in bonds as a result of the record payout.
Jun. 27, 2014, 7:53 AM
- Expected on Monday to plead guilty to criminal charges and pay as much as a $9B fine, BNP Paribas (BNPQF) reportedly plans to dramatically reduce its dividend and sell billions in bonds. It isn't clear at the moment if the dividend will be scrapped entirely, or if a token payout will remain.
- The bank paid a dividend of €1.50 ($2.04) per share in 2013, and one victim of the cut will be the State of Belgium which owned 10.3% of the bank as of the end of last year. "A spokesman for the Belgian Finance Ministry declined to comment," says the WSJ.
- Previously: NYT: BNP Paribas expected to plead guilty, pay $8.9B
Jun. 27, 2014, 3:06 AM
- BNP Paribas (BNPQF) is expected to plead guilty to sanction violations and pay an $8.9B fine, the NYT reports. Authorities are hoping to announce the verdict Monday, and it will outline the bank's illicit money transfers betweeen 2002 and 2009 that violated U.S. sanctions.
- Yesterday, the NY Department of Financial Services looked to impose a year suspension on the bank for dollar clearing services, a service which is essential to doing business with international clients.
Jun. 26, 2014, 3:12 AM
- BNP Paribas (BNPQF) may now face another penalty from U.S. authorities due to its money transfer sanction violations. The NY Department of Financial Services is now looking to impose a year suspension on the bank for currency conversions, Reuters reports.
- The suspension will prohibit a service known as "dollar clearing," which will suspend the bank from converting foreign currencies to dollars in some businesses. BNP's New York branch clears hundreds of billions of dollars every day in trade finance, commodities businesses, custodian accounts and foreign exchange.
- On top of its expected $9B fine, the suspension will cause a hefty hit to the bank's services, although it will allow BNP to retain its license to operate in New York. S&P has said earlier this month that the bank's long-term credit rating is at stake, as a result of the upcoming new penalties.
Jun. 25, 2014, 3:40 AM
- BNP Paribas (BNPQF) is moving its U.S. sanctions compliance operations to New York from Paris. The move comes at a time where the bank is under fire for breaching U.S. sanctions violations, and faces a possible $9B fine for moving money to countries including Iran, Sudan and Syria.
- Relocating the team is not part of any settlement with the U.S., although the bank is looking to improve its compliance efforts, and mollify American regulators.
- The U.S. has already received hundreds of millions of dollars for sanction violations from foreign banks Credit Suisse, Standard Chartered, Barclays, and others.
Jun. 23, 2014, 1:38 AM
- BNP Paribas (BNPQF) will most likely settle the U.S. investigation over its sanction violations for $8-9B, CNBC reports.
- The bank is said to have been involved with evading American sanctions by engaging in more than $100B of transactions with Sudan, Iran and Cuba.
- Some BNP Paribas officials have already resigned, after U.S. authorities demanded more than a dozen chosen bank employees leave as part of any settlement.
Jun. 15, 2014, 11:30 AM
- France's finance minister has announced that the negotiation between BNP Paribas (BNPQF) and the U.S. regarding the potential U.S. $10B fine on the bank for avoiding sanctions has moved to a "more equitable" level.
- "I think we have made progress towards more equitable penalties that do not impede in a strong way the future and the future of funding in particular," says French finance minister Michel Sapin.
- A $10B fine will cut the bank's 2014 earnings, and negatively affect dividends. It will also lower BNP's core equity tier one ratio 100 basis points from the current 10.6%.
Jun. 11, 2014, 4:35 PM
- Vivien Levy-Garboua was in charge of North American compliance from 2005-08 and is currently an adviser of senior bank execs, and Ben Lawsky - chief of New York's Dept. of Financial Services - wants him removed, along with at least a dozen others, including the bank's COO.
- The executive ousters, of course, are in addition to the $10B-plus fine being sought by the DOJ. Lawsky also wants to suspend BNP Paribas' (BNPQF) ability to transfer money through its New York branch - an idea being fiercely resisted by the bank which says it will cost it a good deal of business.
- Previously: BNP and Hollande should be thankful it's only $10B
Jun. 6, 2014, 10:42 AM
- Pushing back against French disgust over the possible $10B fine to be levied against BNP Paribas (BNPQF +0.6%), sources at Justice let leak to Reuters that they initially wanted a $16B penalty.
- To put the $10B in perspective, BNP earned about $11.2B last year, and getting a $2B slice of that $10B will be the NY State Dept. of Financial Services, whose annual budget is $552M. BNP has reserved $1.1B against the fine.
- Forgetting the Hollande government for a moment, bank executives are no doubt looking on in alarm at these massive fines being tossed about like nickels and dimes. "I think everyone realizes that it's an exuberant market," says a defense lawyer who has been involved in settlements with the DOJ. Maybe the banks should just take their chances at trial?
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Jun. 6, 2014, 3:14 AM
- BNP Paribas (BNPQF) is looking into a potential management changeover after facing a possible $10B U.S. fine, with talks of COO Georges Chodron de Courcel leaving the bank. A few months ago, the U.S. Department of Financial Services urged Mr Chodron de Courcel be one of a dozen employees to leave the bank as part of any settlement.
- The bank's chairman Baudouin Prot is also in the spotlight, although it is reported that he has no plan to step down
Jun. 5, 2014, 10:57 AM
- "The president does not meddle in prosecutions," says President Obama ahead of a meeting with French President Hollande. Hollande, who instituted a 75% tax rate on earnings over $1M, is worried a rumored $10B fine against BNP Paribas (BNPQF) will damage the French economy, and his government is pressing U.S. prosecutors/regulators to ease off.
Jun. 3, 2014, 3:28 AM
- France's foreign minister Laurent Fabius has announced that the $10B fine on BNP Paribas (BNPQY) is excessive, and that the U.S. should deal with the issue as a partner and not unilaterally. BNP Paribas currently faces a penalty from the U.S. stating it has violated American sanctions on Iran, Sudan and other countries.
- "The fine has to be proportionate and reasonable," Fabius says. "These figures are not reasonable."
- Previous coverage
May 29, 2014, 3:15 PM
- 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.
May 21, 2014, 3:36 AM
- U.S. authorities want BNP Paribas (BNPQF) to pay over $5B in fines and plead guilty to settle federal and state probes into the French bank's dealings with sanctioned countries, including Sudan and Iran, Bloomberg reports.
- The figure is notably above the $3.5B that Bloomberg bandied about just last week and the more than $1.1B that BNP has set aside.
- A deal could be announced next month.
- Shares are -2.05% in Paris.
BNPQY vs. ETF Alternatives
BNP Paribas has a presence in 75 countries with more than 180,000 employees, including 140,000 in Europe. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy... More
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