Reuters - Video

EDITION: U.S. | U.K. | IN

Barack Obama

U.S. targets Commerzbank and DB - sources

Tuesday, Jul 08, 2014 - 02:09

After BNP, Germany's Commerzbank and Deutsche Bank appear to be next in the line of fire of the U.S authorities over their alleged dealings with blacklisted countries, with both facing major fines, according to sources speaking to Reuters. Melanie Ralph reports.

▲ Hide Transcript

View Transcript

Fears of more fines hitting banking sector heavyweights are making investors nervous. Sources told Reuters that Commerzbank and Deutsche Bank are in settlement talks with U.S Regulators. And the New York Times is reporting that Commerzbank is accused of having transferred money through its U.S operations on behalf of companies in blacklisted countries like Iran and Sudan. The rumored fine for Commerzbank is in the region of half a billion dollars. Compared to BNP's nine billion dollar fine last month, that's not too bad. As with BNP 'though, the fear now is the fines could get bigger as the weeks go by. Not to mention MORE banks facing penalties. Shares in both banks were down sharply on the news - dampening the mood of European stock markets. Reuters banking correspondent, Steve Slater. (SOUNDBITE) (English) STEVE SLATER, EMEA BANKING CORRESPONDENT, REUTERS, SAYING: ''What is factored in is that where will be more fines, but the scale of them, no one knows, and that's one of the big uncertainties in the market at the moment. When you're talking about nine billion dollar fines it becomes a material impact to capital and to rebuilding that capital, which politicians say restricts banks ability to lend, so then it becomes political as well.'' Commerzbank has over a billion dollars set aside for litigation costs and possible fines. With the German government owning 17 percent of Commerzbank, there could be political ramifications too at a time when the German-U.S. relationship is already under strain It raises the questions over whether the U.S is exploiting the dominance of the U.S dollar to impose its own rules and standards on foreign firms. (SOUNDBITE) (English) STEVE SLATER, EMEA BANKING CORRESPONDENT, REUTERS, SAYING: ''There is a feeling in Europe that the U.S. is over-stepping its reach and targeting European banks more, but the U.S banks have been hit very hard with very big fines and they seem more advanced along the path of paying costs for litigation and fines than the European banks. I think banks on both side of the Atlantic still probably have some more fines to pay.'' Commerzbank isn't the only one that could be clobbered by U.S authorities. Lloyds Banking Group, Credit Suisse and Standard Chartered have all settled. And Credit Agricole and SocGen are also thought to be under investigation for money laundering or sanctions violations.

U.S. targets Commerzbank and DB - sources

Tuesday, Jul 08, 2014 - 02:09

Money »

S&P 500 closes at new high S&P 500 closes at new high

Thu, Aug 21, 2014 - (1:24)

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

Dow back to positive territory for year Dow back to positive territory for year

Wed, Aug 13, 2014 - (2:18)

Markets cheer Russia's Ukraine exit Markets cheer Russia's Ukraine exit

Fri, Aug 08, 2014 - (1:50)

Russia, Iraq push Dow to three-month low Russia, Iraq push Dow to three-month low

Thu, Aug 07, 2014 - (2:27)

Wall Street gains but telecom disconnected Wall Street gains but telecom disconnected

Wed, Aug 06, 2014 - (2:28)

Stocks zapped by energy weakness Stocks zapped by energy weakness

Tue, Aug 05, 2014 - (2:46)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)

The week that changed Boston The week that changed Boston

Mon, Apr 14, 2014 - (3:28)