News Column

BNP-Parisbas shares stable despite expected US 8.9 bln fine

June 30, 2014

PARIS, June 30 (KUNA) -- Share prices for leading French bank BNP-Paribas were stable on the Paris Stock Exchange in early trading Monday, despite an expected announcement later that the US Treasury Department and Regulators will fine the bank USD 8.9 billion for using the US dollar in operations with Sudan, Iran and Cuba.

The French bank has been accused of violating US sanctions against those three countries and faced a massive fine for using the US currency in dealing with them. Previous estimates had put the fine between USD 10 billion and USD 16 billion.

Over the weekend, media reports say the bank's Board of Directors met discreetly and approved the move to accept the USD 8.9 billion fine and a suspension of part of BNP's US banking activities.

Details of the fine and punitive measures are due to be announced when markets close in the US on Monday.

French officials have warned that the harshness of the US fine and punitive measures are unwarranted and disproportionate and the US action could hamper efforts to get a Trans-Atlantic trade agreement wrapped up.

French stock broker "Boursorama" said that the BNP-Parisbas shares were up slightly in mid-morning at Euros 49.52, just 0.22 percent higher than the previous close. But the share price has dropped 12.5 percent since the beginning of the year. Trading on the share was active with 1.2 million shares changing hands. (End) jk.rk

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Source: Kuwait News Agency

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