A&O advises as BNP Paribas agrees $246m fine for forex misconduct
French bank agrees multimillion-dollar settlement with US Federal Reserve Board
July 18, 2017 at 08:08 AM
2 minute read
Allen & Overy (A&O) has advised BNP Paribas on the bank's latest multimillion-dollar settlement relating to the forex rate-rigging scandal.
The French bank has agreed to pay a $246m (£189m) fine as part of its settlement agreement with the US Federal Reserve Board, following "past misconduct in its foreign exchange business" between 2007 and 2013.
In a statement, BNP Paribas said: "BNP Paribas deeply regrets the past misconduct which was a clear breach of the high standards on which the Group operates."
The bank added that it had since "implemented extensive measures to strengthen its systems of control and compliance".
A&O New York partner David Esseks has been advising BNP Paribas on its exposure to the forex scandal for a number of years, although the magic circle firm declined to comment on the most recent settlement.
The forex scandal dates back to 2013, when allegations emerged that traders had been colluding to artificially fix the foreign exchange market for several years.
Other law firms appointed to advise banks on the ensuing investigation included Locke Lord for HSBC, Covington & Burling for Citigroup, Cahill Gordon & Reindel for Credit Suisse, Skadden Arps Slate Meagher & Flom for JP Morgan and Gibson Dunn & Crutcher for UBS.
In 2015, Clifford Chance and Sullivan & Cromwell advised Barclays when it was fined a total of $2.4bn for its part in the scandal, with five other banks hit with penalties totalling $3.3bn. Slaughter and May acted for JPMorgan on its fine, while Linklaters advised RBS.
Sullivan also advised BNP Paribas in 2014, when it agreed a record $9bn settlement for breaching US trade sanctions. That settlement related to charges of conspiracy and making false statements relating to transactions on behalf of Sudan, Iran and Cuba, which amounted to billions of dollars during a 10-year period between 2002 and 2012.
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