BNP is not alone: EU banks could lose up to €80 bn in sanctions

BNP Paribas admitted guilt on Monday and agreed to plead guilty to criminal charges; thus it will pay a $8.97 billion penalty (€6.6 billion). The bank was among those entities that hadn’t been too affected by the 2008 crisis. However, this fine –which is the most expensive that the US Treasury Department has ever imposed on a foreign bank, places BNP in the centre of attention.

french banks

This is not the only case of a penalty over litigation for a European bank. As a matter of fact, fines for the European banking sector may reach $58 billion according to Morgan Stanley estimations.

Credit Suisse raises the amount to $76 billion, almost twice as the $42 billion anticipated last year. This figure equals half of what the European banks lost in the credit markets after the outburst of the subprime mortgages.

According to Morgan Stanley, the latest finds are already discounted in prices -in the case of BNP. That’s why they expect that the bank will rebound with a 10% core tier versus 9.5% expected. Even though the firm intends to maintain a dividend similar to 2013 (€1.5 per share), the analysts’ consensus forecasts it will be cancelled.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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