BNP Paribas Faces the Music - Reportedly Settles Case Over Swiss Franc Loan

BNP Paribas BNPQY reportedly settled a lawsuit related to a Swiss franc loan case.

BNP penned a settlement deal with France's consumer group CLCV over a lawsuit on its consumer credit unit for misleading practices about Swiss-franc mortgages, reported Reuters.

The company will pay a compensation of between 400 million and 600 million euros ($662.3 million), the report added.

In late November, BNP Paribas Personal Finance (BNPPF) was found guilty of concealing the risks of its Helvet Immo Swiss franc loan, of which it signed around 4,600 contracts in 2008-2009.

The loan, designed for tax-free rental investment, was made in Swiss francs but repayable in euros and the repayment rose when the euro fell against the Swiss currency after the 2008 financial crisis, the report noted.

Last month, BNP Paribas and HSBC Holdings PLC HSBC were hit with a fine of 26.5 billion won ($20.4 million) by South Korea for naked short-selling. 

Also Read: Goldman Sachs, BNP Paribas Lead $95M Funding Round For Fintech-Focused Fnality

Price Action: BNPQY shares closed higher by 0.38% at $34.74 on Friday.