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U.s. Government To Unveil Near $9 Billion Fine For France's Bnp

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http://uk.reuters.com/article/2014/06/30/uk-bnp-paribas-usa-idUKKBN0F40ZU20140630

The U.S. Justice Department is expected to announce on Monday a settlement with BNP Paribas involving a record fine of nearly $9 billion (5.2 billion pounds) over alleged U.S. sanctions violations by France’s biggest bank, sources familiar with the matter said.

The penalties, which the sources said may also include a temporary ban on some dollar-clearing business, could hit BNP's dividend payout, regulatory capital ratios and its investment banking targets, analysts say.

BNP is expected to plead guilty to a criminal charge in Manhattan Federal Court on Monday and the U.S. Justice Department is planning a news conference in Washington to announce a deal the same day, sources said.

However the lender is expected to retain its banking license from the New York state banking regulator, after negotiations which, according to sources close to the matter, at one point raised the prospect of an even bigger fine up to $16 billion.

"I want to say it clearly here: we will receive a heavy penalty," BNP Chief Executive Officer Jean-Laurent Bonnafe told staff in an internal message sent on June 27 and seen by Reuters.

Great piece of negotiating there, up the fine to $16bn and then reduce it to a more reasonable $9bn! At least no one has been jailed for being a criminal and the bank keeps its license. If you are imposing a fine of this magnitude it implies to me they are unfit to hold a banking license.

Still the US govt has extracted a large amount of advanced tax from the French.

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Interesting that the French Govt consider BNP Paribas whiter than white and Jerome Kerviel a "common criminal".

However while the dollar is the reserve currency it seems unfair to set rules unilaterally about how it is used.

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My take from this is: don't do deal in $ with dubious countries.

Use Euros.

The US has had enough in seigniorage over the last 20 odd years since the US stopped being a net creditor.

Scr.w em, let them be Argentina.

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