BNP Paribas stock rises despite $9 billion fine

PARIS, July 1 (UPI) -- BNP Paribas said that it will not let a $9 billion fine deter it from proceeding with its dividend and growth plans, with its stock value rising Tuesday.

The French bank pleaded guilty Monday to criminal charges for breaching U.S. sanctions and was fined $8.97 billion. The fine brings to an end U.S. Justice Department investigation into the bank helping some of its clients dodge sanctions imposed on Iran, Sudan and other countries.

"BNP Paribas went to elaborate lengths to conceal prohibited transactions, cover its tracks and deceive U.S. authorities," U.S. Attorney General Eric Holder said Monday in announcing the accord. "If sanctions are to have teeth, violations must be punished."

Despite the record fine, BNP said it plans to match last year's dividend of €1.50 a share in 2014. The bank is also not changing its three-year growth targets and does not plan to raise capital.

The fine will put to an end investigations that spanned multiple U.S. agencies, such as the Justice Department, the Treasury's Office of Foreign Assets Control, the New York District Attorney's Office and the New York Department of Financial Services.

BNP pleaded guilty to forging business documents and to violating money laundering laws in the U.S. The bank will also not clear any U.S. dollar transaction services through its New York branch for a year. The bank said it will clear U.S. dollars "through a third-party bank instead of clearing through BNP Paribas New York."

"We deeply regret the past misconduct that led to this settlement. The failures that have come to light in the course of this investigation run contrary to the principles on which BNP Paribas has always sought to operate," said Jean-Laurent Bonnafe, CEO of BNP Paribas. "We have announced today a comprehensive plan to strengthen our internal controls and processes."

The penalty comes at a precarious time for European banks who are being nudged by the European Central Bank to increase lending, while at the same time having to stabilize their finances ahead of stress tests due later this year.

Standard & Poor's said it that it will have to review the size of the fine and the nature of any additional penalties before deciding whether it should cut the bank's long term credit rating.