Bloomberg reports that the US plans to fine a French bank US $10 billion:
U.S. authorities are seeking to impose the fine to settle allegations that BNP transferred funds for clients in violation of sanctions against Sudan, Iran, and Cuba, according to people familiar with the investigation. The fine could be the largest criminal penalty in the U.S., eclipsing BP Plc’s $4 billion accord with the Justice Department last year.
I have little sympathy for banksters and politicians who are essentially arguing over how they going to divide the spoils of the middle class. But this $10 billion fine of France is a particular arrogant treatment of an “ally” and has the potential of helping the anti-FATCA movement. It is an especially egregious example of how the US determines that its laws have international jurisdiction and has set about confiscating the world’s wealth through its banking hegemony. If the US keeps this up, expect the rest of the world to join Russia and China economic coalition against the US.
Hat tip, Zerohedge: France Furious At US $10 Billion BNP “Masterful Slap”, “Racketeering” Fine
The US has effectively weaponized the dollar thus making it dangerous to use.
IMPORTANT
Simon Black reports today that
“The issue is that BNP violated a 2012 -executive order- from Barack Obama (#13622) that requires non-US companies to enforce US sanctions. “
From @Tim
France Has Hissy Fit Over BNP Paribas Fine and Dollar Dominance
As @Victoria has pointed out in this book, they should have been aware of Treasuries War…. especially when operating on its homeland territory! Regardless of the merits or the level of the penalty, it is hard to have a lot of sympathy for their stupidity.
I was told that BNP used New York clearing houses for their transactions with Iran- using dollars. THATS what got them in trouble.
and the interesting back story….
A Grieving Father Pulls a Thread That Unravels BNP’s Illegal Deals
NOTE, it was NOT the Regulators on the job, doing their oversight and enforcement that caught this. What does that tell you ??
If anyone is interested in a GREAT podcast (story telling) on the effectiveness of Regulators for reigning in excesses or fraud, I recommend this one by This American Life, called The Watchmen.