WEST PALM BEACH, FL (HEDGECO.NET) – The French asset management firm and banking giant, BNP Paribas is under investigation by the district attorney�s office of Manhattan, New York. The investigationwas triggered by possible improper banking practices discovered by internal audit procedures.
An unnamed PNB Paribas spokeswoman was quoted as saying that �an internal audit had found problems in the bank’s U.S. asset workout business, an activity that deals with the securities of distressed or bankrupt companies.� According to the report given to the district attorney�s office, the banking firm had failed three internal audits, and a recent audit discovered that an estimated $4 million had been unaccounted for.
BNP Paribas released a statement saying that, �the bank is a victim of the conduct of what we understand to be two employees. The bank identified their improper activities following an internal audit in January 2004 and an investigation initiated in February 2004.� The bank authorities moved quickly to place Edward Canale, the managing director of the group on leave while investigations of the alleged illegal procedures are being carried out. The bank has pledged its full cooperation to investigators.
BNP Paribas is an international investment manager with around EUR 168 billion in assets under management, in more than 20 countries. Its dedicated �Alternative & Structured Investments� unit accounts for over EUR 18 billion out of its total assets under management.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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