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Breakingviews: BNP investors deserve more clarity on fines

Friday, May 30, 2014 - 04:03

May 30 - The U.S. is seeking a $10 bln fine for BNP over an alleged sanctions evasion. Both the bank and the U.S. authorities have declined to comment but investors deserve to know more, says Breakingviews.

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CNPs behind phones with quite a swift resolution that's according to breaking isn't joining me now is Dominic and yet. And it thank you so much for joining us. I see that -- so -- media reports about communities finds that plays and not to ten billion dollars. And losses make how big is the fire. We don't know yet it's we're waiting and that's part of the problem I think because he's been going on for a number of weeks. I think it was about two weeks ago in -- that was. Clutch of media reports saying that finally be over three billion dollars BNP Paribas has any provision one point one billion dollars -- be. Even three billion would be a -- from what it has already put aside expect. In recent weeks it adds a five billion number now oracle ten billion just ratcheting up. And I think the problem is that we have and uncertainty in in the market no one quite knows what cup final -- going to be. And shares -- down again down about five cents X as much as 6%. -- -- -- -- And he put it what I think it's a slightly full smoking in PM. Who have traded based on the fold -- this ten billion number is the correct number and then it turns out the other. And Ohio all a -- hello I'm not. They they can rightly be annoyed and that's that's the the situation we find themselves. We only thing to see this really impact operations not be so this is he says you know this how many number is being discussed. I think is difficult because if you look at Credit Suisse which recently pled guilty and was falling two point eight billion dollars in title -- without his authority paid. It doesn't appear to have affected operations or not much they were able to raise five billion dollars of debt the week afterwards. They've also been able to carry on business as usual as far as we can tell. So I'm not sure that define itself will really impact BNP's business in in May affect that great strategy because it will probably reduce. That capital ratio a bit more than. Would have been expected to below 10% and since kind of like a psychological threshold for most banks in Europe but in last there's a final side businesses in the US. They may not have that much sound effects on BNP's business of course those bands could happen. And that would be a big problem. Still nothing has something to another big money making industry where -- which is something breaking visas fixing on today. Why is it Spanish football finances. Aren't looking to Diana well. This is I called by my collection and and she's pointed out that it's Real Madrid and Barcelona dominate. Spanish football and by those clubs very wealthy they've done very well but most of the other Spanish clubs. How huge debts. I'm not a problem because it means that you have this -- on fat -- -- weighted system. Times I think the key problem that you know highlights is that it's about. Well one of the coupons is it is about TV rights if you look at the UK the premiership hit. TV rights and now very lucrative in the clubs have done very well from the -- the last year they've become even more. Lucrative cops found even more control over them -- take political it actually made more money. The months to sixteen months to Citi won the premiership. But -- make more money because its games -- shown more often. The best client side. TV -- can really help. These clubs out of any kind of debt problems and so if if the sponge system manages to. Liberalize habits and allow the -- to buy those rights. They could have the same effect. -- finances the process. Thank you very much to dominate and get that from breaking -- talking about Spanish triple and B&B private for lunch and assessing financial inside want to US breaking each and every day. Twelve that's Easton seventeen that CBS T I mansion along and banks is what is.

Breakingviews: BNP investors deserve more clarity on fines

Friday, May 30, 2014 - 04:03

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