French multinational bank Societe Generale announced today that it expects to pay €1.2 billion ($1.4 billion) in penalties to United States authorities to settle international sanction violations in the coming weeks.
According to the statement from the bank, it is in more active talks with US authorities to settle an investigation concerning US dollar transactions that were processed by the French bank and involved countries that have against them.
In an update released today, the bank said: “Societe Generale expects that the amount of the penalties in the U.S. Sanctions Matter will be almost entirely covered by the provision for disputes allocated to this matter.”
Currently, the bank has €1.43 billion set aside to cover the penalties in regards to legal disputes. For more than a year Societe Generale has been tied up in a number of costly legal battles. However, this is the last case that the bank needs to settle in regards to violating US sanctions.
Another fine for Societe Generale
Earlier this year in June, that Societe Generale reached an agreement to pay $475 million to settle a class action suit which alleged that its , the London Interbank Offered Rate – a key interest rate used in contracts.
According to the indictment, between May 2010 up until mid-2012, certain members of the bank’s management team, including the CFO, head of investment banking and Treasury managers reported false lower rates that were used to set the Euro and U.S. dollar Libor.
As a result of the Libor case, in order to settle, the French multinational bank’s deputy CEO Didier Valet left in March. Valet was in charge of the firm’s investment banking activities. Around mid-2017 Societe Generale also paid €963 million to settle another dispute with the Libyan Investment Authority, a government-managed sovereign wealth fund.
Be First to Comment