BNP Paribas to Pay Record $8.97B Fine

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July 1 (Bloomberg) –- Bloomberg’s Manus Cranny reports on the record fine to be paid by BNP Paribas for pleading guilty to sanctions violations. He speaks to Anna Edwards and Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Manus cranny has more details.

A heck of a lot more.

Nine times more than the bank had put aside themselves.

Up until now, 21 banks have been fined $5 billion.

This comes down to how much profit they earned from breaching sanctions.

That is how -- they got $9 billion.

Some are still under investigation.

Bear that in mind.

A couple of major issues at play.

The compliance department actually said to parts of the bank in geneva that -- that goes to the crux of the attorney general's issue with party ibas.

Even in the words of one senior compliance manager, they hosted osama bin laden and refuses the united nations intervention in darfur . they went on to continue with transactions.

That goes to the heart of the issue.

What impact will this have on the bottom line?

We will get a conference call . we will keep an eye on headlines as they come.

I am sure you too will break them.

-- you two will break them.

The dividend will be paid, but that is $.50 less than the market was looking for.

My sources tell me, we have read a lot that they might sell some assets.

My sources are saying there is an american retail asset in california called the bank of the west.

It doesn't really fit in with the overall strategy at bnp par ibas.

It doesn't fit in with where they want to go.

Will they stick their 2016 target?

Certain employees have left.

A quite serious reputation.

They're out of the dollar clearing system.

That will cost him $40 million.

It is not about that, it is about the fact that you have to say i'm sorry, sir.

I can't really do that business for you.

And that toured a frau de fraud label doesn't help much either.

They're putting pressure on u.s. officials throughout the process.

Basically, the sanctions activities of the past, the authorities have basically penalize them for activities of the past and protected the future.

Utility -- the ability to punish banks should encourage others to use the euro as a mode of trade.

Will this be the sting in the tail for the u.s. authorities if this happens?

Should the french allow paribas write this off against tax.

The tax them on the profits on the way in.

Look, i don't know whether that is going to happen.

One would imagine for international banking relations, that would be quite a slap from the french to the u.s.. it would mean the french government giving up on tax revenue as well.

We don't know.

Manus, thank you very much.

John dawson is in hong kong

This text has been automatically generated. It may not be 100% accurate.


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