BNP Paribas says penalties may top $1.1B

French bank BNP Paribas, owner of First Hawaiian Bank, warned on Wednesday that it might have to pay penalties higher than the $1.1 billion it had set aside for an investigation by the American authorities into whether it processed payments for countries facing U.S. sanctions, including Iran.

The New York Times reported Tuesday that prosecutors in New York and in Washington were considering seeking a guilty plea from BNP Paribas as part of a resolution of the case, according to lawyers briefed on the matter but not authorized to speak publicly.

If that happens, the bank would be the largest financial institution to plead guilty to mail and securities fraud charges since Drexel Burnham Lambert in 1989. The bank is hoping that prosecutors will agree to a plea from a BNP subsidiary.

BNP addressed the matter and the financial risks in a statement Wednesday: "The discussions that took place during the first quarter of 2014 concerning U.S. dollar payments involving countries subject to U.S. sanctions demonstrate that a high degree of uncertainty exists as to the nature and amount of penalties that the U.S. authorities could impose on the bank following completion of the ongoing process: There is the possibility that the amount of the fines could be far in excess of the amount of the provision."

The bank, in its own internal investigation, "identified a significant volume of transactions that could be considered impermissible" from 2002 to 2009, and some of those transactions might have been improperly routed through its New York branches.

BNP Paribas also reported Wednesday that its first-quarter profit rose 5 percent to $2.31 billion from the year-ago period.

China disputes it may soon be No. 1 economy

BEIJING » China has rejected a World Bank report that suggests it might pass the United States this year to become the biggest economy measured by its currency’s purchasing power.

China is on track to become the top economy by sheer size by the early 2020s, possibly sooner. But its leaders downplay such comparisons, possibly to avert pressure to take on financial obligations or make concessions on trade or climate change. While faster-growing China would pass the United States in purchasing power terms this year, it still would be about 60 percent the size of the U.S. economy at market exchange rates.

British vehicles invade Auto Lunch Bunch

"Brits, Big and Small" is the theme for Tuesday’s Auto Lunch Bunch gathering.

The Kars at the Kurb display will feature a 1960 "Bugeye" Sprite as the "small" entry, a 2015 Mini Coupe from Mini of Hawaii as the "new" entry, and a 1990 Rolls Royce Corniche as the "big" entry.

In addition to usual hosts Ed Kemper and Bill Maloney, Brett Pruitt, president of the Hawaii British Car Club, will be co-hosting the luncheon. MidWeek sports writer Steve Murray will be the featured speaker.

The $16.25, credit-card-only price includes meal, drink and tip. The event is on the first Tuesday of each month at 1599 Ala Moana Blvd. and reservations can be made via email at billmaloney15@aol.com or to Ed Kemper at 225-2965.

ON THE MOVE

Koloa Landing at Poipu Beach resort named Ike Cockett its new general manager. He has more than 25 years of experience in the hotel and resort industry. As general manager, Cockett’s responsibilities include overseeing all hotel functions and operations, including staff and property management and guest relations and sales.

Hawaiian Telcom has promoted Ben Morgan to vice president of customer care and network reliability. He joined the company in 2011 as director of customer care and expanded his role as executive director of customer care in 2012. Before Hawaiian Telcom, Morgan served as vice president of voice services for MegaPath in Seattle.

Central Pacific Bank will award three checks totaling $120,501 to: Boys and Girls Club of Hawaii, Hawaiian Humane Society and Special Olympics Hawai‘i Walks For You, the fifth annual company walk that marks the culmination of two months of fundraising efforts by CPB’s 800 employees, also will take place Saturday.