RegulationJul 1 2014

BNP Paribas shares recover after US settlement

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BNP Paribas’ shares have climbed 2.8 per cent on the first day of trading after pleading guilty to conspiring to violate US sanctions against countries such as Sudan - settling with an $8.9bn penalty, FastFT reports.

The French bank has said it will take a €5.8bn charge to cover the fine, on top of past provisions, and will from 1 January be prohibited for a year from clearing dollar transactions related to its oil and gas business – where much of the alleged criminal activity took place. But it will not lose its New York banking license.

Jean-Laurent Bonnafe, BNP Paribas’ chief executive, said in a statement last night: “We deeply regret the past misconduct that led to this settlement. The failures that have come to light in the course of this investigation run contrary to the principles on which BNP Paribas has always sought to operate.”

The lifting of the uncertainty that has swirled around BNP Paribas seems to have restored some investor appetite for the bank’s stock, with its shares rising 2.8 per cent in opening trade to €51, after hitting a low of €48.83 last week.

Mr Bonnafe said: “Having this matter resolved is an important step forward for us. Apart from the impact of the fine, BNP Paribas will once again post solid results this quarter and we want to thank our clients, employees, shareholders and investors for their support throughout this difficult time.”