G-20 Revolt? France Gets "Positive Reception" To Challenge US Bank Fines

Tyler Durden's picture

In recent weeks France has defied US demands not to build Mistrals for Russia, has questioned dollar imperialism and the Petrodollar, and has blasted the US banking regulator's fines as "accelerating the decline of the dollar." So it is likely not a huge surprise that ahead of the G-20 meeting of world leaders later in the year, The FT reports, France has gathered support to challenge US regulators imposing heavy penalties on foreign banks. Berlin, London and Rome have backed Paris in its push to have its concerns about so-called US extraterritoriality discussed when leaders of the world’s top 20 economies meet hoping to bring "more proportionality" to bank fines. With allies like this...

 

As The FT reports, top regulators have been raising concerns about the impact of the long procession of fines on their efforts to strengthen banks’ finances.

France has gathered support to challenge US regulators imposing heavy penalties on foreign banks at a G20 meeting of world leaders later this year after the record $8.9bn fine levied on BNP Paribas last month.

 

Berlin, London and Rome have backed Paris in its push to have its concerns about so-called US extraterritoriality discussed when leaders of the world’s top 20 economies meet in Brisbane in Australia in November, according to French and other European officials.

 

...

 

“There should be co-ordination between regulators, as there should not be multiple jeopardy,” agreed one senior European official, who confirmed that there had been “informal discussions” about putting the issue of bank fines on the G20 agenda.

 

“It is an issue, but we have to be careful not to go into an area of saying ‘it is too much and we have got to lay off these guys’,” said the official, who added that the G20 could discuss how to bring more “proportionality” to bank fines.

 

French finance minister Michel Sapin sought support for France’s stance in recent meetings with Wolfgang Schäuble and Pier Carlo Padoan, his German and Italian counterparts, according to French officials. There was a “positive reception”, one said.

 

...

 

In Berlin, officials said Germany had agreed to back Paris, saying it supported a common EU approach to the US over extraterritorial jurisdiction. Berlin sees that a union-wide approach to Washington is more likely to bear fruit than case-by-case discussions.

As a gentle reminder, Brazil, Russia, India, China, and South Africa are all members of the G-20 and, we suspect, would not be too worried backing any such coordinated actions against US extraterritoriality.

However, we leave it to the French to express their anti-dollar-imperialism...

Single whammy:

  • NOYER: BNP CASE WILL ENCOURAGE ‘DIVERSIFICATION’ FROM DOLLAR

Here is the full google translated segment:

Q. Doesn't the role of the dollar as an international currency create systemic risk?

 

Noyer: Beyond [the BNP] case, increased legal risks from the application of U.S. rules to all dollar transactions around the world will encourage a diversification from the dollar. BNP Paribas was the occasion for many observers to remember that there has been a number of sanctions and that there would certainly be others in the future. A movement to diversify the currencies used in international trade is inevitable. Trade between Europe and China does not need to use the dollar and may be read and fully paid in euros or renminbi. Walking towards a multipolar world is the natural monetary policy, since there are several major economic and monetary powerful ensembles. China has decided to develop the renminbi as a settlement currency. The Bank of France was behind the popular ECB-PBOC swap and we have just concluded a memorandum on the creation of a system of offshore renminbi clearing in Paris. We have very strong cooperation with the PBOC in this field. But these changes take time. We must not forget that it took decades after the United States became the world's largest economy for the dollar to replace the British pound as the first international currency. But the phenomenon of U.S. rules expanding to all USD-denominated transactions around the world can have an accelerating effect.

In other words, the head of the French central bank, and ECB member, Christian Noyer, just issued a direct threat to the world's reserve currency (for now), the US Dollar.

 

Double whammy:

  • Total’s de Margerie Sees No Need for Dollars in Oil Purchases

Oil major Total's chief executive Christophe de Margerie was responding to questions about calls by French policymakers to find ways at EU level to bolster the use of the euro in international business following a record U.S. fine for BNP.

"There is no reason to pay for oil in dollars," he said. He said the fact that oil prices are quoted in dollars per barrel did not mean that payments actually had to be made in that currency.

So even a major beneficiary of the status quo appears to see the end in sight for the Petrodollar.

And now The Triple Whammy

  • *FRANCE SAYS INCREASING EURO USE IS ISSUE OF 'GLOBAL BALANCE'
  • *SAPIN SAYS EURO AREA NEEDS TO LEAD DISCUSSION ON DOLLAR USE
  • *FRANCE NOT FIGHTING 'DOLLAR IMPERIALISM,' SAPIN SAYS (wo shy mention it?)

French Finance Minister Michel Sapin says that now is the right time to bolster the use of the euro in transactions outside the U.S. Sapin speaks in an interview with Bloomberg News in Aix-en-Provence, France.

“We sell ourselves aircraft in dollars. Is that really necessary? I don’t think so,” Sapin says, adding "I think a rebalancing is possible and necessary, not just regarding the euro but also for the big currencies of the emerging countries, which account for more and more of global trade."

 

“We can avoid the exchange rate risk, and that’s always useful. We can diminish financing costs in pricing more in other currencies,” Sapin says.

 

“This is not a fight against dollar imperialism,” Sapin says.

 

“It’s up to Europe, to the euro zone in particular, to lead this argument,” Sapin says.

 

As The FT reports, Mr Sapin said he would raise the need for a weightier alternative to the dollar with fellow eurozone finance ministers when they meet in Brussels on Monday, although he declined to go into detail about what practical steps might emerge.

As we joked previously, nope - no anti-dollar-imperialism here at all...

*  *  *

As we showed recently...(and have ever since 2010)... nothing lasts forever

Meanwhile, somewhere Putin is still laughing.

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kliguy38's picture

round the bitches up and send um ta GITMO

Spitzer's picture

The last FT link ain't working Tyler.

Headbanger's picture

Vas te faire encule Barry!
Et nous pète dans votre direction générale!

http://www.youtube.com/watch?v=QSo0duY7-9s

barre-de-rire's picture

enculer, ER, infinitif.

anyway, nice try, we still get the message lol

 

always funny for us to see foreign ppl trying to use insults with our words. you bring us exotics. very pleasant, kinda fresh.

"""barry met-toi à genoux et suce moi les couilles, sale tafiole* """

 

( * just in case google cannot translate, tafiole, argotic word = faggot - mostly used in south of country around mediterranean border )

The Alarmist's picture

"Now go away, or I shall be forced to taunt you a second time-ah!"

Headbanger's picture

Fuck you too barre for being such a typical French prick about us "foreign ppl" being so funny trying to use French (from Google translate ) for some humor because we don't use perfect French

No wonder France has a horrible reputation for tourism:

http://www.news.com.au/travel/travel-updates/french-plan-to-become-touri...

BTW: I worked at Airbus way back when and know all about the shitty attitude there.

And here's a typical technical presentation by the French engineers at Airbus about their latest deelopments:

http://www.youtube.com/watch?v=CVJ-W6LioB8

You people deserve each other.

philipat's picture

Who is this "Wo Shy" who mentioned it and what do the Chinese have to do with this.......;-)

Keyser's picture

I fart in your general direction...

silvermail's picture

Oil prices must be are quoted in parts of ounces Gold or in grams Gold per barrel.

HenryHall's picture

It is proper that banks pay fines when they have broken the laws. But there is a danger that bank fines could be seen as political moves with indirect motivations.

In order that this does not occur there should be a G20 agreement that nations be compensated for the punishment of international banks. Thus, in the case of BNP Paribas the $8.9 Billion fine levied should be collected by the USA Federal government and then an equal amount of money $8.9 Billion (basically the same money) paid by the US Federal Government to the Government of France. This would ensure hat the rule of law is upheld, banks are punished for lawbreaking, but country to country animosity is not created since fines will go to the country of the bank's owners, not the country of the bank's customers.

MH17FLIGHT's picture

My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... http://goo.gl/bhiamE

Minge's picture

You do know, I assume, that while you're online I'm banging your wife.  Twelve hours a week.

The Alarmist's picture

How do you suppose he 'earned' $9,500? You did the work, and he posted the video of you and his wife.

Yen Cross's picture

Mon ami sœurs a été en moyenne de 15k depuis des mois maintenant et elle travaille environ 20 heures par semaine. Je ne peux pas croire à quel point il était facile avant sa cavité prolapsus rectal.

HyperinflatmyNutts's picture

How do we get this BS banned? All there post r the same Spam BS. 

Pie rre's picture

It's the NSA hoping that the weak minded will click on it

Cognitive Dissonance's picture

It's all fun and games until someone's fiat gets hurt.

813kml's picture

The US is drunk-driving its Fiat through the streets of Paris.

smacker's picture

Drunken Fiat will end up inseine.

logicalman's picture

Driving in Paris would make any half sane driver stay away from drink.

You really need your wits about you when everyone around you is drunk!

 

AdvancingTime's picture

Will it become the G19 and the G6 as America is put in the penalty box?

MsCreant's picture

Penalty box implies they will let you play, later.

ekm1's picture

Even Europe is raising up against Bank Lobby now.

 

Watch for bullets on executives heads of banklobby.

 

Reminder of the Suicide Jihad Belt that banklobby has worn:

 

http://cdn.theatlantic.com/static/mt/assets/meganmcardle/banklinks.jpg

 

It seems that bank lobby won't surrender to Neocons without real blood being shed.

Watch out, my fears may come out true.

History shows that when ultra elite is in civil war and no power sharing occurs, bullets, knives and machetes fly on heads, very unfortunately, very unfortunately.

I fear, I fear that might happen.

Urban Redneck's picture

It's probably not helpful to US ambitions in Ukraine to go pissing off the EU and uniting them against the US. But what do Barry and Lurch know about actually getting shit done?

ekm1's picture

All Barry cares about is to make money to Warren Buffett so Buffett guarantees his family's income for decades to come.

 

The rest? Nobody cares. He doesn't care

 

Obama and Buffett chose to war against Neocons.

I don't think anybody can beat neocons forever. They will hit back sooner or later

MsCreant's picture

Beyond digusting. Our leaders are indolent children as are the banksters. Kids on the playground. EU unites against US only because another bully has come along that looks like they have a more powerful future. No one is indignant about what we are up to. They back our play until it does not serve them any more, then they profess to be indignant when we look like clear losers. They all know US/Kiev story (as in US did it [de plane boss, de plane]). They all lay in wait to see how the cards play out. Shooting a plane out of the sky? No real outrage. We will only see them express outrage when it suits their goals. Before that? Gosh the US fooled us too! Bankstering is the same.

Keyser's picture

This is merely escalation of a plan that was put into place and executed on 9/11... Bush and now Obama are clowns for the people's entertainment, while TPTB implement agenda 21... Open borders and integration of societies is the order of the day, along with de-population... Everything else is subtrifuge...

The zionist neocons are driving the ship, right into a reef intentionally...  The ebola outbreak is no coincidence, nor is the default in Argentina, the invasion of Ukraine, Syrian intervention, ISIS, Iran nuclear capability, Chinese expansion and on and on and on... Act II has just begun... 

 

 

Iam_Silverman's picture

"The ebola outbreak is no coincidence, nor is the default in Argentina, the invasion of Ukraine, Syrian intervention, ISIS, Iran nuclear capability, Chinese expansion and on and on and on.."

 

You forgot to mention the flat tire I had the other day.  I just knew it was part of a larger conspiracy, dammit!

logicalman's picture

When the Soviet Union collapsed (an interesting tale, if you do some serious research) I remember saying to my mum, funilly enough, (She's 90 and still an anarchist) that the world would be a worse place now that there was only one bully left in the school yard.

 

PeeramidIdeologies's picture

A good observation. When the b and c listers find out where they actually rank, they may just get a little testy

When you have everything, you have everything to lose ~ Lots of People

tickhound's picture

Calm down.

The article says they got a "positive reception" to a threat... which means they fired a negotiation salvo and are publicly attempting to realign a more mutually "fair" way between central banks to fuck the public.

You act like dollar rejection is some new concept or something and that only select insiders could see it coming. To think important people, or your "ultra elite bank lobby", are looking to scalp anyone else's head but yours is silly. They cut loose ends, not book ends. The entire world Ponzi scheme involves power sharing... World bank, IMF, ECB, Brics.

And I'm not sure exactly what outcome you are setting up to take credit for... But it's outstanding sensationalism within broad vagueness. People dying, to include bankers and token serfs, is a secure prediction as the world PONZI crumbles.

Theta_Burn's picture

But for anyone to come out and actually say it? not only that, we are hearing this almost daily now. yes folks we must really be in deep shit if the French are finally growing a spine...

What concerns me most is not the demise of the dollar, but what America will do to protect it...

 

tickhound's picture

See now this is a post that makes sense. Honest and without the fluff.
And I hear you and I agree for the most part... Things are accelerating. The "next hegemony" is closer.

But it's not that France, or China, or India etc are growing spines... It's that dollar hegemony is weaker, maybe even permissibly weaker.

edotabin's picture

I believe you are highlighting something that plagues the French in general. They have this tendency to anti this and anti that.  They usually highlight problems and criticize but rarely have an actual answer or the power to implement said answer. This isn't intended to be a jab. Just something I've noticed over the years.  Maybe this time they will act on it??

ekm1's picture

This the first time since 1960 that Military Complex is not in control of the Federal Reserve and not in control of congress and not in control of the White House simultaneously.

 

This is anything but stable situation.

This is totally unstable.

 

Neocons will hit back, otherwise they will vanish

tickhound's picture

Let's examine 'what he said'

"This the first time since 1960 that Military Complex is not in control of the Federal Reserve and not in control of congress and not in control of the White House simultaneously."

- Fluff. I'm not even sure he could make a solid case for whether it was true or not. A strong case can be made that the MIC is made up of large Multi-national corporations and these corporations not only have influence (or even control) over our institutions, but worldwide influence... at minimum have them working on their behalf. Our military is a "global force for good" according to latest propaganda. Seems the marketing department still packs punch.

"The Neocons will hit back, or they will vanish"

- Fluff, narcissistically so.

"This is anything but stable situation."
"This is totally unstable."

- the only thing he said that makes sense but adds no validity to the fluff.

I'm all ears if you have a better handle in it.

ekm1's picture

:-)

Green arrow for you.

Who claimed I was trying to make a solid case?

 

I'm just expressing my opinion, or pontificating, if you will.

That is how I read reality now. 

This is a lot of fun.

 

 

logicalman's picture

Let's go a bit further than 'what he said'

The Israeli leader advised the Obama administration "not to ever second guess me again"

Given the number of dual citizens wandering about the place, who do you really think is in control here?

Just asking.

tickhound's picture

Our multinational corporations in collusion with our central banks both symptomatic of a scarcity based profit system.

And you already know the who, so I gave you the what.

PeeramidIdeologies's picture

You calm down ya old tick hound. If you have it all figured out, you got nothing to worry about ;)

I guess we'll see who's scalps are hanging on the wall when all the dust settles. I've been leaving most of mine in the dirt, but I suppose I'll start taking a little more credit from here on in, for your viewing pleasure of course. I will be keeping it vague mind you, as that how it's done around here. Ambiguity is key you see... For obvious reasons

Monty Burns's picture

" bank lobby won't surrender to Neocons "

Tribal overlaps there so strong as to be almost indistinguishable.

 

WTFUD's picture

Come tae grips, the fine is only a backdoor way of getting some of the funds loaned from the FED BACK.

Joebloinvestor's picture

So is GS gonna start a subsidiary that uses only foreign currency?