 "US seeking $10-bn fine from BNP")
BNP Paribas SA fell the most in 15 months in Paris trading after a person familiar with the matter said US authorities are seeking more than $10 billion to settle federal and state investigations into dealings with sanctioned countries including Sudan and Iran.
The shares declined as much as 6.1 per cent, the largest drop since February 2013, and were 5.3 per cent lower at euro 49.85 by 11:41 am in Paris. BNP Paribas, the largest French bank, has fallen 12 per cent this year, compared with a 3.5 per cent increase in the Bloomberg Europe Banks and Financial Services Index.
A final deal between BNP and the US is probably weeks away, said the person, who asked not to be identified because the talks aren't public. The amount to settle has escalated: the bank said in April that it might need to pay far more than the $1.1 billion it had already set aside for the case. Prosecutors are also pressuring the company to plead guilty to moving funds for clients in violation of sanctions against Sudan, Iran and Cuba, people familiar with the matter have said.
The settlement could be the largest criminal penalty in the US, eclipsing BP Plc's $4-billion accord with the Justice Department last year.
Jean Pierre Lambert, an analyst at Keefe, Bruyette & Woods, said in a May 21 report that he expected BNP to pay a fine of about $7 billion to avoid being excluded from the US dollar payment system. Last week, Bloomberg News reported that prosecutors were seeking more than $5 billion.
Negotiations are being handled by Leslie Caldwell, head of the Justice Department's criminal division, Manhattan US Attorney Preet Bharara and Manhattan District Attorney Cyrus Vance Jr Benjamin Lawsky, superintendent of New York's Department of Financial Services, is also involved in the discussions, along with the Federal Reserve and the Treasury Department's Office of Foreign Assets Control.
Spokesmen for BNP Paribas, the Justice Department, the Fed, the Treasury, Lawsky, and Vance declined to comment. The amount requested by the US was reported earlier by the Wall Street Journal.
US Attorney General Eric Holder is taking a tougher stance following criticism from lawmakers for settlements that let banks escape criminal charges while paying fines, admitting wrongdoing and improving controls.
Credit Suisse Group AG agreed on May 20 to pay $2.6 billion and have a unit plead guilty for helping Americans evade taxes. Shares of the second-biggest Swiss lender have gained 2.1 per cent since the settlement was announced, while the bank has won "a number of new mandates" in private and investment banking, Chief Financial Officer David Mathers said this week.
The shares declined as much as 6.1 per cent, the largest drop since February 2013, and were 5.3 per cent lower at euro 49.85 by 11:41 am in Paris. BNP Paribas, the largest French bank, has fallen 12 per cent this year, compared with a 3.5 per cent increase in the Bloomberg Europe Banks and Financial Services Index.
A final deal between BNP and the US is probably weeks away, said the person, who asked not to be identified because the talks aren't public. The amount to settle has escalated: the bank said in April that it might need to pay far more than the $1.1 billion it had already set aside for the case. Prosecutors are also pressuring the company to plead guilty to moving funds for clients in violation of sanctions against Sudan, Iran and Cuba, people familiar with the matter have said.
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"Beyond the uncertainty related to the potential financial settlement, the key issues remain the type of potential charges and impact on BNP's operational capability," Kinner Lakhani, a London-based analyst at Citigroup Inc, said in a note.
The settlement could be the largest criminal penalty in the US, eclipsing BP Plc's $4-billion accord with the Justice Department last year.
Jean Pierre Lambert, an analyst at Keefe, Bruyette & Woods, said in a May 21 report that he expected BNP to pay a fine of about $7 billion to avoid being excluded from the US dollar payment system. Last week, Bloomberg News reported that prosecutors were seeking more than $5 billion.
Negotiations are being handled by Leslie Caldwell, head of the Justice Department's criminal division, Manhattan US Attorney Preet Bharara and Manhattan District Attorney Cyrus Vance Jr Benjamin Lawsky, superintendent of New York's Department of Financial Services, is also involved in the discussions, along with the Federal Reserve and the Treasury Department's Office of Foreign Assets Control.
Spokesmen for BNP Paribas, the Justice Department, the Fed, the Treasury, Lawsky, and Vance declined to comment. The amount requested by the US was reported earlier by the Wall Street Journal.
US Attorney General Eric Holder is taking a tougher stance following criticism from lawmakers for settlements that let banks escape criminal charges while paying fines, admitting wrongdoing and improving controls.
Credit Suisse Group AG agreed on May 20 to pay $2.6 billion and have a unit plead guilty for helping Americans evade taxes. Shares of the second-biggest Swiss lender have gained 2.1 per cent since the settlement was announced, while the bank has won "a number of new mandates" in private and investment banking, Chief Financial Officer David Mathers said this week.