BNP, Banking and Regulatory Fault Lines

Mohamed El-Erian examines the legal charges and huge fines about to be levied against French banking giant BNP Paribas, and explores the problems that arise when regulatory actions potentially become politicized.
When the possibility of a major BNP fine first emerged a few weeks ago, the French government reacted strongly.

Widespread expectations that U.S. officials are about to announce an unprecedentedly large and sweeping fine on a French bank, BNP Paribas SA, are an opportunity to consider where the international financial community stands on regulation, compliance and enforcement in the wake of the devastating global crisis that first surfaced publicly in 2008.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.