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SocGen Expects $1.4b in US Penalties

SocGen Expects $1.4b in US PenaltiesSocGen Expects $1.4b in US Penalties

France’s Societe Generale expects penalties relating to its dispute with US authorities over international sanctions violations to be close to €1.2 billion ($1.4 billion) which would almost entirely be covered by provisions, Reuters reported. “Societe Generale expects that the amount of the penalties in the US sanctions matter will be almost entirely covered by the provision for disputes allocated to this matter,” the bank said in an update released late Monday. The bank’s provisions set aside to cover penalties related to legal disputes totals €1.43 billion. Societe Generale, which has been dogged for more than a year by a series of costly legal disputes, said it expects the issue to be settled within the coming weeks. The last case that remains to be settled relates to dollar transfers made on behalf of entities based in countries subject to US economic sanctions. In June, it agreed to pay $1.3 billion to authorities in the US and France to end the disputes over transactions made with Libya and over the suspected rigging of Libor, a key interest rate used in contracts worth trillions of dollars globally.

 

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