France has sought backing from its European partners as it seeks to limit US punishment of BNP Paribas for breaking US sanctions, saying “disproportionate” action against its biggest bank could pose a systemic risk to the sector, reports The Financial Times.
President François Hollande has discussed the case with Angela Merkel, the German chancellor, and French ministers have also taken it up with other European governments, including the UK, a senior French official said.
The diplomatic manoeuvring comes as the outlines of a likely settlement between BNP and a group of US authorities is taking shape ahead of an announcement that could come as early as next week.
The bank is expected to pay a fine of $8bn-$9bn, submit a guilty plea and agree to the termination of more than a dozen employees, several of whom have already left the bank, people familiar with the matter said.
US authorities are also seeking to temporarily suspend the bank’s ability to clear US dollar transactions – a crucial element for much of its international wholesale banking activity. Negotiations continue on exactly how this suspension will work, but US authorities aim to avoid any impact on the bank’s large US retail network, BancWest, the people said.
Read more of this report from The Financial Times.