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From Banking and Finance Law Daily, December 22, 2016

Fed fines Banco Bilbao Vizcaya Argentaria $27 million for securities underwriting violations

By Stephanie K. Mann, J.D.

The Federal Reserve Board has assessed a civil money penalty of $27 million against Banco Bilbao Vizcaya Argentaria, S.A., Bilbao, Spain (BBVA), and its subsidiary, BBVA Securities, Inc., New York, N.Y. (BSI), for allegedly exceeding limits on BSI’s securities underwriting and dealing activities previously imposed by the Fed.

BBVA, a U.S. bank holding company, engages in limited securities underwriting and dealing activities as authorized by the Fed under the Bank Holding Company Act. Under that limited authority, a U.S. bank holding company may engage in securities underwriting and dealing activities subject to restrictions on the amount of gross revenues derived from those activities.

However, according to the Civil Money Penalty, BBVA improperly classified certain types of revenues in calculating its compliance with these limits. As a result, BBVA exceeded the conditions imposed by the Fed on its activities and filed inaccurate reports with the Fed.

BBVA took action to correct the violations once it discovered the errors and BSI is now in compliance with the revenue limit and reporting requirements, said the Fed.

Companies: Banco Bilbao Vizcaya Argentaria, S.A.; BBVA Securities, Inc.

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