(BFW) UBS May Face CHF6-9B Fine in FX Probe: Autonomous

MORE: UBS May Face CHF6-9B Fine in FX Probe: Autonomous
2014-06-11 16:14:43.460 GMT


By Elena Logutenkova
     June 11 (Bloomberg) -- Stefan Stalmann, analyst at
Autonomous Research, bases estimate for fine by U.S. and EU
regulators on previous settlements and likely $10b penalty
against BNP over alleged sanctions-busting.
  * U.S. fines are undergoing Weimar-esque hyperinflation,
    Stalmann says
  * Two U.S. deferred prosecution agreements in five years make
    UBS look like a “repeat offender”
  * Fine would cut UBS CET1 ratio by 3-4 percentage points if
    risk-weighted assets don’t increase, or by 4.5-6.5
    percentage points if they do, Stalmann says
  * UBS may need two years of sub-50% dividend payouts to boost
    CET1 back to more than 13%
  * UBS has said it’s conducting an internal investigation into
    FX manipulation allegations and is cooperating with
    authorities
  * UBS official declines to comment on analyst report
  * Autonomous Research estimates FX fines for banks including
    UBS, Deutsche Bank, Citigroup and others at $35.1b
  * EARLIER: Looming BNP Fine Shows Risk for Banks Ensnared in
    Litigation NSN N6NDTQ6K50YT <GO>


Story Link:NSN N70HGB6JIJUZ<GO>

For Related News and Information:
First Word scrolling panel: FIRST<GO>
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To contact the reporter on this story:
Elena Logutenkova in Zurich at +41-44-224-4101 or
elogutenkova@bloomberg.net
To contact the editors responsible for this story:
Frank Connelly at +33-1-5365-5063 or
fconnelly@bloomberg.net

WSJ : Société Générale Chief Plays Down BNP Paribas Probe

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.

>>> US Rumors today

Rumor Activity was active today.

* There were reports that IBM is close to deal with Globalfoundries for chip-manufacturing business sale. * Alder BioPharmaceuticals (ALDR) strength attributed to mention of an M&A target at Bernstein, * Elizabeth Arden (RDEN) strength attributed to story making the round that Korean LG Household and Healthcare prepared to make an offer. * Anadarko Petroleum (APC) strength attributed to Exxon Mobil (XOM) for APC M&A speculation. * Vringo (VRNG) strength attributed to positive blog mention. * GT Advanced Tech (GTAT) strength attributed to positive newsletter mention making the rounds.

(BFW) *BOUYGUES TELECOM CEO: MERGER TALKS FAILED WITH ORANGE, ILIAD

 BN 06/11 14:09 *BOUYGUES TELECOM CEO OLIVIER ROUSSAT SPOKE IN PARIS
 BN 06/11 14:09 *BOUYGUES TEL TO KEEP LOW-PRICE STRATEGY IN FIXED LINE BUSINESS
 BN 06/11 14:09 *BOUYGUES TEL TRIED TO BUY MVNO VIRGIN MOBILE: CEO
 BN 06/11 14:09 *BOUYGUES TEL CEO SAYS ILIAD IS NOT FOR SALE
 BN 06/11 14:09 *BOUYGUES TEL PLAN BASED ON 4 MOBILE CARRIERS IN FRANCE: CEO
 BN 06/11 14:09 *BOUYGUES TEL PLAN BASED ON FUTURE AS `AUTONOMOUS' CO.: CEO
 BN 06/11 14:09 *BOUYGUES TELECOM CEO: MERGER TALKS FAILED WITH ORANGE, ILIAD
*BOUYGUES TELECOM CEO: MERGER TALKS FAILED WITH ORANGE, ILIAD
2014-06-11 14:10:27.391 GMT

--HEATHER BURKE

-0- Jun/11/2014 14:10 GMT