[QODLink]
Europe

French FM says US bank fine 'not reasonable'

Reported $10bn to be levied on BNP Paribas could damage free-trade agreement between US and EU, Laurent Fabius warns.

Last updated: 03 Jun 2014 14:04
Email Article
Print Article
Share article
Send Feedback
The Wall Street Journal says BNP Paribas could face a fine of up to $10bn [AFP]

Laurent Fabius, France's foreign minister, has dismissed as unreasonable a reported fine of $10bn that the US is seeking to place on bank BNP Paribas, and warned that it could threaten a free trade agreement between the US and Europe.

BNP Paribas, France's largest bank, set aside $1.1bn last year after the US began investigating it for alleged sanctions violations, but this spring said the fines could be "far in excess", the Reuters news agency reported.

Its share price slumped last week after the Wall Street Journal that reported the fine could be $10bn.

"The sanction has to be proportional and reasonable. These amounts are not reasonable" Fabius told France 2 television on Tuesday.

He said the fine could have a negative effect on negotiations on a free-trade agreement between the EU and the US,the fifth round of which was held in Washington on May 19, the AFP news agency reported.

"This trade partnership can be established only on a basis of reciprocity. But here, we would have the example of an unjust and unilateral decision", Fabius said.

Meanwhile, the New York Times newspaper reported that Christian Noyer, governor of the Bank of France, had visited top US officials on the case in New York last week to warn that such a fine, equivalent to 7.4 billion euros, could have grave effects on the financial system.

President Francois Hollande has also recently raised concerns about a plea deal with the White House, the daily said.

241

Source:
Agencies
Email Article
Print Article
Share article
Send Feedback
Topics in this article
People
Country
City
Organisation
Featured on Al Jazeera
More than one-quarter of Gaza's population has been displaced, causing a humanitarian crisis.
Ministers and MPs caught on camera sleeping through important speeches have sparked criticism that they are not working.
Muslim charities claim discrimination after major UK banks began closing their accounts.
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Featured
In Vietnam, 40 percent of all pregnancies are terminated each year, a rate that health officials are hoping to reduce.
Ivory Coast tackles internet fraud scourge, but analysts say criminals continue to outsmart authorities.
In US study, MIT scientists changed the emotions linked to specific memories in mice.
The seizure of the Tabqa airbase highlights the Islamic State's consolidation of power in eastern Syria, analysts say.
Traditional spring festival blossoms outside India through fun runs, raves and TV commercials.
join our mailing list