Société Générale Chief Plays Down BNP Paribas Probe
French Bank's Chief Executive Says Systemic Risks Shouldn't Be Exaggerated
PARIS— Société Générale SA GLE.FR -2.62% Chief Executive Frédéric Oudéa Wednesday played down the possible systemic risks posed by potentially large fines by U.S. authorities of BNP Paribas SA BNP.FR -1.55% .
In recent years, U.S. authorities have aggressively pursued and fined European banks active in countries subject to U.S. sanctions. In the latest instance, the Justice Department and other U.S. authorities are pushing BNP Paribas to pay more than $10 billion and plead guilty to allegedly violating U.S. sanctions against countries including Iran and Sudan, according to people familiar with the matter.
"One should not exaggerate the systemic threat," said Mr. Oudea at a conference in Paris. "The amounts we are talking about are potentially manageable."
Analysts say BNP could shoulder a fine of as much as $10 billion but have raised concerns about the possible fallout from temporary restrictions on its ability to handle dollar transactions. As recently as last week, French President François Hollande pointed to the broader risks from "totally disproportionate, unfair sanctions" for the whole of the euro zone.
BNP Paribas hasn't been charged with wrongdoing and has said it was cooperating with U.S. authorities. The bank said in February it had set aside $1.1 billion to cover potential fines but two months later disclosed that possible fines could be much higher.
Mr. Oudea said he had no specific information about the probe of BNP Paribas.
Société Générale is also in talks with U.S. authorities over potential sanctions violations involving Iran, Cuba and Sudan, according to people familiar with the matter. Mr. Oudea declined to comment on the probe of the bank, which has disclosed the talks in corporate filings.