Is BNP the New Blueprint for Dealing With Banks?

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June 23 (Bloomberg) -- Bloomberg’s Keri Geiger examines the business impact of a possible $9 billion settlement by BNP Paribas with the U.S. government for violation of sanctions and if it provides a blueprint for future bank settlements by the U.S. government. She speaks on “Market Makers.”

Other banks, is going to feel a lot of pain.

They are a smaller bank and they have smaller u.s. operations.

A smaller bank here.

They are going to use their dollar clearing operations, that could cause customers to go elsewhere.

There clo has resigned due to pressure from the new york state banking regulator ben lawsky.

Dozens more are on the chopping block.

Can we talk about being prohibited from conducting business in u.s. dollars will stop has this ever happened before?

Not in a case like this.

There have been six other banks in the last few years find for sanctions violations that have not gone to the point where they cannot do dollar bearing in the u.s.. this is a little bit of a new technique on behalf of regulators to try -- put some teeth to it.

Amp up the pressure.

It is difficult to tell if the guilty plea really gets the impact that the regulators and prosecutors want.

It does not seems that it deters bad behavior.

What does this mean for bnp paribas?

What i think about the business they do in the u.s., it is not that big.

There is speculation that if the pressure gets really really having on some of the smaller european banks, they cut off to step out of doing business with the u.s. that's always an option.

A $10 billion fine might not be worth it over the type of conduct we are talking about.

A lot of banks have gotten in trouble for sanctions, bnp is paying more than we have seen.

I am just looking -- they do not generate that much of their revenue here, but they have a fair number of employees, a quarter of their workforce is in the americas.

Principally the u.s. throughout latin america as well.

Good point.

There are employee issues.

And workforce issues that could come into play if the fines or the punishment is too much for them to bear for the u.s. operation.

The one thing i think about with bnp, we have covered this in previous conversations, every time we seem to talk about this bank or the next bank, we are talking about not an upgrade, a more kinds of penalties.

Once upon a time it was a monetary settlement.

Then a monetary settlement and plead guilty.

Now it is money plus guilty plea plus you cannot do business in u.s. dollars.

What is next?

Good point.

What, nation of fines, -- what combination of fines, firing people, getting individuals will make people happy and deter wrongdoing.

Congress was not happy about the way the banks are being punished.

What is going to make them happy?

Mainstream wants to see things punished -- they don't know why.

Is last couple cases have nothing to do with the financial crisis.

It is a really complex formula that we have not really seen, come up.

The credit suisse deal, they got a lot of criticism because the guilty plea did not seem to have an impact on the bank.

You know who i think is pleased?

The coo who has been forced to

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


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