Weekend Economists Mark D Day, 2014 June 6-8, 2014

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23. BNP Executive Firings Sought by Top New York Bank Regulator Amid Probe

http://www.bloomberg.com/news/2014-06-05/lawsky-said-to-seek-bnp-executive-dismissals-in-probe.html

New York’s top banking regulator Benjamin Lawsky is pressing BNP Paribas SA (BNP) to dismiss one of its top executives as part of settlement negotiations with the U.S. over alleged sanctions violations, according to a person familiar with the matter.

Lawsky wants the bank to remove Chief Operating Officer Georges Chodron de Courcel, said the person, who asked not to be identified because the discussions are private. Lawsky is also seeking the departure of another senior executive and about 12 other bank employees, the person added. Chodron de Courcel and the others haven’t been accused of wrongdoing.

“If the bank acknowledges a fault, someone should take responsibility and leave,” said Francois Chaulet, who helps manage 400 million euros ($546 million) at Montsegur Finance in Paris, including BNP shares.

U.S. authorities are said to be seeking as much as $10 billion -- a record criminal penalty -- over BNP’s dealings in sanctioned countries including Sudan and Iran. Lawsky has said that individuals, not just companies, must be held accountable to deter future wrongdoing. He also wants to suspend BNP’s dollar-clearing operations in New York, which has become a sticking point in the negotiations, a person familiar with the matter has said.