BNP Paribas: US fine leads to record loss

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BNP PARIBAS posted its largest quarterly loss ever yesterday and France’s biggest bank replaced its compliance chief after a record fine for doing business with countries blacklisted by the US. The net loss amounted to e4.32 billion (R61.5bn), BNP Paribas said, in line with analysts’ estimates. Chief executive Jean-Laurent Bonnafé, working to move past the US penalties, is revamping the bank’s compliance department. “The group has learned lessons from these events and is implementing a major reinforcement of its internal control,” Bonnafé said. BNP Paribas was fined $8.97bn (R95.3bn) after pleading guilty to criminal charges in the US on June 30, a record sum for a bank accused of violating US sanctions. Ignoring one-time items, the bank earned e1.92bn in the quarter as revenues from trading equity and debt rebounded. – Bloomberg

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