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:


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


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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BurningFuld's picture

What do you mean by "gonna start?"

ebworthen's picture

Perhaps this could help to end the I.R.S. hegemony tracking down those who leave the U.S.; it would encourage immigration of people from the U.S. instead of the Middle East.

If France doesn't stem the flow of Muslims, Notre Dame "Cathedral" will be a Mosque in 20-30 years.

WTFUD's picture

If not the Algerians who's gonna clean up my hotel coke&cum stains?

logicalman's picture

Cathedral - Mosque

Two exaples of delusional behaviour.

Not important at all.

Who knows, might become a synagogue.


Spitzer's picture

You can always count on the Frogs to challenge the Seppo's.



Yen Cross's picture

   In this particular instance I agree with you.

     You and your Seppo blab... I can see the oil running off your half bald skull from here.

icanhasbailout's picture

Very clever to have a Finance Minister whose name can be easily mistaken as a typo of "Spain"

Bloppy's picture

Could've sworn the world was supposed to love us if only we'd elect the Dear Leader Obama. What gives?

BurningFuld's picture

I think the rest of planet earth lost patience with him when he was indiscriminately droning innocent people.

Peter Pan's picture

Just one name comes to mind....Charles de Gaulle.

He knew how to put America in its place by cashing in dollars for gold.

Escapedgoat's picture

Now you make me re-think all these attempts  AGAINST HIS LIFE  all these years back in the 70's

logicalman's picture

Winston Churchill hated De Gaule, so he must have been an OK guy!

De Gaule, that is.


Seize Mars's picture

The only ones blissfilly unaware that the USD is on a precipice are...ordinary Americans.

AnAnonymous's picture

It is going to be funny. The american french bank is going to get the penalties, the others are backing for their banks not to be fined.

'Americans' vs 'americans'.

Yen Cross's picture

  Off topic/  I thought you guys could use a little humor in this "batshit crazy" nightmare we're living in. When I read this article, the FIRST person I thought of was AnAnonymous, and it's self righteous Chinisms.

 Fisherman transports massive whale shark on truck in China | Mail Online

  This pretty much explains why the PBoC balance sheet makes the Feds. look like pikers!

   Global Economic Briefing: Central Bank Balance Sheets - peacockfedecbassets.pdf

BurningFuld's picture

All I've got is : Nice truck!

logicalman's picture

The shark thing was sad and ironic.

the .pdf I'll have to look at tomorrow.

Quinvarius's picture

Good luck trying to reason with Obama and Eric Holder, France. 

Fix-ItSilly's picture

You're a big boy,  de Margerie.

If Norway and OPEC wants more Euros, de Margerie can pay/sell in Euros.

If Africa wants Euros, de Margerie can pay/sell in Euros.

If Australia, China, ...  wants Euros, de Margerie can pay/sell in Euros.


Kirk2NCC1701's picture

"...the fact that oil prices are quoted in dollars per barrel did not mean that payments actually had to be made in that currency"

The same phenomenon can occur when a lusty woman expects a hard dick, but doesn't get one.  Or a guy expects to get laid, but doesn't.  ;-)

In the words of that great philosopher Jagger: "You can't always get what you want...".

piratepiet's picture

It seems payments  had to be made in dollars in case of Iraq.  It is said Saddam was toppled because he accepted euros for oil.  This would also explain in part France and Germany's opposition to the invasion in 2003

Spungo's picture

We should fuck up France by asking Bernanke to "help" their economy.

BurningFuld's picture


Send in John Kerry to negotiate a settlement.

Escapedgoat's picture

There is always "Freedom " and " Democracy" to bear on the French, should they not fall back  in line.

Kprime's picture

give them hope and change

Kaiser Sousa's picture

why you think they been been hitting the phony paper prices of Gold and Silver...
tick, toc...
still stackin and laughin..

Kirk2NCC1701's picture

The last peaceful option that the US has in its inevitable and accelerating demise as the GRC, is to re-balance the SDR valuation...

From its current and highly imperialistic allocation, that includes only the SDR_4 (USD, EUR, JPY and GBP), to an equitable representation from the G20.  See IMF site http://www.imf.org/external/np/fin/data/rms_sdrv.aspx for details

The question is:  Will the BRICS or the G20 minus SDR_4 be satisfied with that move, or is it a case of "too little, too late"?  Of course, as long as the US and its USD keep acting as the Global Bully, even the 'partners' in the Euro won't care, since they will get a better deal and less grief w/o the US.

Whether we are headed for a peaceful Currency Reset (USD loses its GRC status, in favor of a basket of Regional Reserve Currencies), or if we are headed for War as a cover and excuse for said Reset, depends largely on what the Globalists/Zionist think they can achieve via the latter.  The G20 (minus the US) are there to hopefully make it clear to the US (and its Globalist/Neocon/Zionist Cabal), that peace is their only viable option in the Currency Reset.

Unfortunately for "The Little People", sacrifices and theatrics may have to be made in multiple global locations, to distract the Sheeple of the World as to what's really going on and who the real villains are.  It's SOP and "Same as it ever was" -- when you're dealing with raw power at this level, and the egos, wealth and lifestyles behind this power.

Elliptico's picture

Mes amis, please read fhe exceptionalism clause.

all-priced-in's picture

Not sure what this means -

But every time I see G20

I always think 10MM Glock :)





Kirk2NCC1701's picture

Glockenspiel?  Glock 'n Spiel?

PeeramidIdeologies's picture

So where is the straw, in the straw stack, on the camels back?...


viator's picture

U.S. on the world's shit list. That will be fun. Do I hear the sound of Putin laughing?

rwe2late's picture

President Barack Obama dismissed Russia as a nation that "doesn't make anything" and said in an interview with the Economist magazine that the West needs to be "pretty firm" with China as Beijing pushes to expand its role in the world economy.


disabledvet's picture

They've also denied it was their Full Retard Trichet who blew up the whole EU too!


Obamanism's picture

Sanctions against France? Ban Fois Gras!

De Galle kicked NATO (SHAPE) out of France that is why it is in Belgium Mons and Brussels.

Hollande is probably looking for his brave pills before the G20 as he is being set up by Cameron and Merkle to go up against the bully.

I wonder what Mr Putin can offer him, or will the Chinese make Hollnde an offer he cannot refuse with the Yaun.

BaghdadBob's picture

When you peer down the rabbit hole, strip away the propaganda and the sad news reports of American aggression abroad, what you quickly begin to realise is that despite the size of the US military, the rest of the world actually has America's very sweaty balls in its ever tightening grip. Dropping the dollar is being made easier, almost by the day. It seems as if it's actually being encouraged! Banks (both central and corporate) from around the world are trying to dump TB's but the US is trying (desperately) to prevent it. When the chain reaction finally begins, the US in its current 'fascist elitist state masquerading as a hollowed-out capitalist democracy' form will cease to exist (What kind of totalitarian dictatorship takes its place is anyone's guess). Many Americans will perish and starve.

Monty Burns's picture

Have you considered the possibility that the plan is in fact to kill the dollar and replace it with a global currency (e.g. SDRs), the NWO wet dream?

BaghdadBob's picture

Yes, I have considered it. I don't buy into the whole NWO thing. As you say, it's just a wet dream of Daddy Bush and his buddies. Three letters that continue to stir up feelings of conspiracy and mistrust. I don't believe any of the BRICS nations are in any kind of rush to fall into the same fiat trap again. Certainly not with western bankers and corporate interests at the helm. Also, you imply that a 'World Currency' is a bad thing as if we've never had it before. But we have. It's called Gold. Just because most of the west has been brainwashed into believing that Gold is a monetary relic (well, most of the US, EU, Australasia anyway) you forget that the other 75% of human beings that live on planet Earth still assign great wealth to it and are more than happy to use Gold itself (or legitimately Gold backed promissory certificates) as cash. Whether these certificates end up being called SDR's, New Dollars, Credits, Pigs Ears, or Pennies from heaven, I care not.

Jack Burton's picture

Why would foreign nations accept court rulings mad by Americans for American interests and demanding huge money payouts to American interests? Really, how fucking stupid to accept this theft. Fuck US courts, they do not rule the world, fuck 'em. That is what I would say to American imposed fines, fuck off!

all-priced-in's picture

They have US branches and want to continue to do business in the USA - so they sort of have them in a tough spot.

If you tell them to fuck off they say - no more USA business.

It is really no different that JMP telling the gov to go fuck themselves we won't pay any fines - they will just shut the bank down.




Jack Burton's picture

Berlin, London and Rome have backed Paris in its push to have its concerns about so-called US extraterritoriality discussed

No shit! This sort of imperial attitude of America is getting old for nations being squeezed by dollar hegemony. The USA better be careful, ALL American world power rests on Petro Dollar and Dollar Hegemony. Lose this and how does America pay for it's government operations which spend TWICE what it takes in in taxes??

Fuku Ben's picture

"I don't know whether the G7 will have anything to do with it, or whether it will be the G20. I certainly hope the IMF will have something to do with it." - Lagarde

Sean7k's picture

People might want to start noticing the world wide campaign (including US officials) making America look like the out of control gaijin. Bullies, killers, warmongers, spying, regime change- it is all being put on the front page for awhile now. America is being set up for a huge takedown and every elite hopes the American people will be stupid enough to put up a fight. 

It is a global world now. The Elites can center their operations anywhere and in relative comfort now that communism has gone mainstream. 

We can thank all the players and actors in this little extravaganza, from presidents to dictators to all the legislative constructs.

Our only chance is to NOT play along. Refuse to get drawn in and let the fuckers fall. This government is not America. The military is not America. We need to look after Americans by staying at home and working together AGAINST our government. Don't make it easy for them.

Monty Burns's picture

The scam will go on until there's wodespread dumping of US Treasuries.  Despite cliams that this is happening I don't see evidence of it in the figures.  Of course 'Belgium' is a wild card in all of this.

tony wilson's picture

listen worthless goy.

the people must pay the fine

as tribute and compensation.

the jews of france must tax the people

to pay the jews of new york

fine compensations

rwe2late's picture

 Your misguided diversion is a lame defense of

the many non-Jewish oligarchs, militarists, despots, and sheikhs

which also (conveniently for them) ignores the systemic problems

from having self-serving organizations based on autocratic power

and unsustainable materialism.

Pretorian's picture

Dont fuck with French !

Angry Plant's picture

Europeans brought it all down upon themselves with all there crying about hunting down tax evaders in foriegn countries.