Six Foreign Banks Face Tough Negotiations With NY Regulator Over Sanctions Violations

By Brian Monroe and Colby Adams

New York state regulators who imposed an unprecedented $340 million penalty on a London-based bank this month is likely to be equally tough on six other foreign banks identified as being the subject of similar investigations, say current and former government officials. Over the past several months, five financial institutions have disclosed in company filings that they are being investigated for violating federal sanctions laws and a sixth faces a similar probe, according to published reports. Two of the banks, Deustche Bank and Commerzbank, are German, while Banque Paribas and Credit Agricole are French. The Royal Bank of Scotland is...