Already flagged by a scathing AMF report, Exane Asset Management—a BNP Paribas Group management company—has now been handed a new condemnation by the Paris Court of Appeal, confirming the extent of its breaches.
The Paris Court of Appeal has upheld the finding that Exane Asset Management demonstrated unacceptable opacity, unjustified refusal to meet its obligations, and serious breaches of its contractual duties.
In the disastrous management of the Exane Integrale Fund, BNP Paribas Exane knowingly favored certain counterparties over others—most notably to the detriment of Natixis.
This blatant mismanagement was further compounded by a complete lack of transparency toward shareholders and the use of dilatory tactics to obstruct investigations.
In 2020, Exane Integrale—whose custodian, specialized in securities services, was BNP Paribas Securities Services—refused to honor margin calls issued by no fewer than ten major international banks (Barclays, BofA Securities Europe, Citigroup, Credit Suisse International, Deutsche Bank, Goldman Sachs, JP Morgan, Merrill Lynch, Société Générale, and UBS).
The immediate consequence: termination of the ISDA agreements, the collapse of the fund, and a chaotic liquidation process that remains unresolved five years later.
This scandal casts a harsh spotlight on the systemic failure of BNP Paribas, BNP Paribas Securities Services (BPSS), and Exane AM—entities that were supposed to exemplify financial market excellence and rigor.
