U.S. state and federal authorities are in settlement talks with Commerzbank AG (>> Commerzbank AG) regarding the German bank's dealings with Iran and other U.S.-blacklisted countries, the New York Times said Tuesday, citing sources.
While talks are at an early stage, a settlement is likely to include at least $500 million in penalties, people briefed on the matter tell the newspaper. Commerzbank will probably avoid criminal charges in exchange for penalty payments and other concessions, the newspaper said.
A settlement could be reached this summer, according to the report, which follows a U.S. settlement with BNP Paribas (>> BNP PARIBAS) last week. In that case, the French bank agreed to pay nearly $9 billion and plead guilty to violating U.S. sanctions.
Commerzbank declined to comment on the report.
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