BNP Paribas hit by downgrade warning from ratings agency Standard & Poor's

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France's biggest bank, BNP Paribas, has been threatened with a downgrade to its credit rating as it braces for a potential $10bn (£6bn) fine from US regulators for busting sanctions.

The warning by the Standard & Poor's agency came amid fresh estimates of the regulatory costs facing the European banking industry, which could leave a $104bn bill for a catalogue of errors ranging from tax evasion and mis-sold financial products to manipulation of financial markets.

Analysts at Credit Suisse doubled their estimates for the costs of the scandals which have gripped the industry since the financial crisis. Upping their estimate to $104bn from $58bn, the Credit Suisse analysts forecast that litigation facing Royal Bank of Scotland could further delay the government selling off its 83% stake.

Powered by Guardian.co.ukThis article was written by Jill Treanor, for The Guardian on Wednesday 4th June 2014 20.12 Europe/London

guardian.co.uk © Guardian News and Media Limited 2010

 

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