As may have heard, BNP Paribas is probably going to write a check for something in the range of $8 billion to $10 billion in order to settle allegations that it violated U.S. sanctions against Iran, Sudan, and a few other places. And while a couple billion or so to make allegations of wrongdoing go away would be but pocket change (and has historically been regarded as no big deal to banks forking over that amount to, say, stop being the poster child for massive tax fraud), senior executives at BNP are actually starting to think 8 or so billion dollars is kind of a lot of money.

Analysts, investors and some BNP Paribas officials are growing increasingly concerned about the possible financial ramifications of penalties the French bank is facing for allegedly violating U.S. sanctions. Shares in the bank ended down 2.4% in Paris, the second-biggest loser in the CAC-40 index, a day after The Wall Street Journal reported that U.S. authorities are pushing for BNP to pay more than $10 billion to resolve the investigation, which would be one of the largest penalties the country has ever levied on a single bank. The cost of insuring BNP’s debt against possible default rose, while its bond prices fell. The prospect of an 11-figure penalty has raised the specter of BNP needing to scale back some of its ambitious international growth plans, curtail its dividend payments or sell shares to replenish its capital buffers, analysts say. BNP officials, while hoping to negotiate a smaller settlement, share some of those market concerns and are scrambling to come up with contingency plans, according to a person familiar with the bank’s thinking.

BNP Officials, Others Concerned About Financial Ramifications of Penalty [WSJ]

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Comments (12)

  1. Posted by guest | May 30, 2014 at 4:15 PM

    we'd kill for a 10 bn dollar fine.

    – guy in charge of keeping up with how much money jpm has paid the govt

  2. Posted by guest | May 30, 2014 at 4:16 PM

    gotta use a spreadsheet

  3. Posted by InfiniteGuest | May 30, 2014 at 4:18 PM


  4. Posted by trader | May 30, 2014 at 4:51 PM

    The cost of doing business is going up

    Steve Cohen

  5. Posted by Garret | May 30, 2014 at 7:30 PM

    10 bn fine translates into cutting 2 thousand jobs at the New York Office.

  6. Posted by Guest | May 30, 2014 at 7:45 PM

    2 thousand american jobs at the New York Office…

  7. Posted by Richard Hertz | May 30, 2014 at 8:10 PM

    I want to see these fukers lose their banking license in the United States. The government (Holder, are you listening?!?) needs to stop at nothing until this happens. Oh, and a $10 billion fine would be nice, too.

    -former head of BNP's doing-business-with-sanctioned-countries group

  8. Posted by 2nd and 3rd le-best | June 1, 2014 at 9:00 PM

    Ha BNP.

    Soc Gen & Credit Agricole

  9. Posted by Squeaky the Mouse | June 2, 2014 at 9:00 AM

    The cost of doing business without breaking the law remains the same….

  10. Posted by Clarity | June 2, 2014 at 12:39 PM

    Which will yield approximately one thousand new episodes of "American Greed: Scams, Scoundrels and Suckers" as half these schmucks set out to pursue illegal endeavors for their own benefit as opposed to that of a major bank.

    – Guy that's less worried about these Wall Street rock stars losing their jobs than he is about the ramifications for society when the roaches scatter.

    p.s. I'd recommend looking into government employment. The pay and benefits are unjustifiable, you invest (spend) other people's money with zero accountability, provide negligible benefits to society, and you spend 80% of your time trying to justify your existent by way of bullying and intimidating the productive members of society…it's a natural fit for Wall Street types.

  11. Posted by Sgt Rock | June 2, 2014 at 12:51 PM

    Serves those cheese eating surrender monkeys right

  12. Posted by cannibalcorpse | June 3, 2014 at 7:10 AM


    Ha ha