US, French bank close to deal on $9 billion fine

Posted on Monday, 06.23.14



US, French bank close to deal on $9 billion fine

BY ERIC TUCKER AND GREG KELLER

THE ASSOCIATED PRESS



WASHINGTON -- The U.S. government and French bank BNP Paribas are close

to a settlement over alleged sanctions violations that would require the

bank to plead guilty, pay almost $9 billion in penalties and face other

sanctions, a person familiar with the matter said Monday.



The person described the deal as imminent, but said it was not exactly

clear when it would be publicly announced. The person spoke only on

condition of anonymity because no agreement had yet been finalized.



BNP Paribas, SA, France's largest bank, has been under investigation for

financial transactions through its New York office for clients in Iran,

Sudan and Cuba in violation of U.S. trade sanctions. A report by the

Wall Street Journal said the bank intentionally hid $30 billion in such

transactions, by far more than in any such case so far.



The French economy minister, meanwhile, urged the U.S. Department of

Justice to be "fair and proportionate" when deciding on the potential

fine. Arnaud Montebourg, speaking on BFM television Monday, said the

U.S. has an unfair advantage in the global "economic war" because of a

law allowing prosecution of foreign companies for activities outside

American soil.



The French government has warned that a huge financial penalty would

have an impact on the whole European economy. Two other French banks are

under separate investigations for similar activities, and the resulting

fines could have repercussions on other companies that do business with

those countries as well as the United States.



But the White House this month deflected France's appeal to intervene,

with President Barack Obama saying he was prohibited by separation of

powers from getting involved and that he would read about the case "in

the newspapers just like everybody else."



Meanwhile, the bank said this month that a top executive, Chief

Operating Officer Georges Chodron de Courcel, would retire in September.

His term was to finish in 2016 and the bank did not explain the reason

for his departure.



U.S. banking regulators sought the departure of Chodron de Courcel and

other executives as part of the investigation.



Shares in BNP were flat in afternoon Paris trading.



Source: WASHINGTON: US, French bank close to deal on $9 billion fine -

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