PARIS: BNP Paribas has tasked Alain Papiasse, head of its investment bank for the past five years, with overseeing its US business and improving controls there in the wake of its record $8.9 billion for violating sanctions.
France's biggest bank was rocked in July when it pleaded guilty to two US criminal charges and agreed to pay almost $9 billion to resolve accusations it violated US sanctions against Sudan, Cuba and Iran.
BNP said on Monday Papiasse would be replaced as head of its corporate and investment banking (CIB) division by Yann Gerardin, who will be in charge of implementing a three-year plan for the business.
Papiasse, currently deputy chief operating officer, will support the CIB restructuring and will also oversee BNP's North American region, particularly in implementing a plan that improves risk control in order to avoid a repeat of misdoings targeted in the US investigation.
BNP's plan includes managing all of its US dollar-flow activity out of its New York office.
Papiasse joined BNP in 2005 after more than 30 years at Credit Lyonnais and has run the CIB unit since April 2009, including taking charge of a restructuring in 2011 and 2012 to reduce assets and improve its liquidity position by making it less reliant on short-term US dollar funding.
He has also tried to bring the various parts of BNP's CIB operation closer together.
A strategic plan set out by BNP in March aims to cut costs and shift more resources to North America, where it owns Bank of the West, based in San Francisco, and First Hawaiian Bank.
BNP expects its CIB arm to post compound annual revenue growth of more than 6 percent through the next three years and to reduce costs.
Gerardin is currently head of global equities and commodity derivatives.
He will take on the running of CIB in October, reporting to Papiasse.
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