Bloomberg News reports that the bank told shareholders at an annual meeting on May 14 that the settlement could be significantly more than the $1.1bn it had set aside for the case. On May 29, Bloomberg News reported that U.S. authorities have demanded more than $10bn, citing a person familiar with the matter. Since then, the bank hasn’t provided additional information about the possible size of a settlement.
BNP Paribas isn’t required under international or U.S. accounting standards to disclose more. Analysts including Jean Pierre Lambert at Keefe, Bruyette & Woods Ltd. are saying what the bank has not: the penalty could wipe out dividends and weigh on future earnings.
Jordan Thomas, a partner at law firm Labaton Sucharow, which has represented banks’ shareholders, said the discrepancy between BNP’s disclosures and reports of a possible $10bn settlement suggests the bank hasn’t said enough.
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