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Goldman Sachs fears risks if rivals plead guilty

Published on May 18, 2014 6:32 AM
 

NEW YORK (AFP) - The head of US bank Goldman Sachs has warned that guilty pleas from rivals BNP Paribas and Credit Suisse, under legal proceedings in the United States, could hurt the financial system.

The two European banks, under probes for violating US sanctions and abetting tax evasion, are potentially facing very heavy fines that could reach billions of dollars.

US authorities are urging the banks to plead guilty and have threatened criminal prosecution, which could lead to the revocation of their licenses – potentially forcing other banks to determine whether to continue doing business with them.

Goldman Sachs chief Lloyd Blankfein, asked about the issue on the sidelines of the bank’s annual shareholder meeting Friday in Texas, said it would be difficult to stop doing business with the two European banks.

 
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