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French bank BNP Paribas was warned in 2006 by a high-ranking U.S. Treasury official and in three reports by legal experts that it risked being penalised for breaking U.S. sanctions, according to Le Monde newspaper. _0"> Since France's biggest bank flagged the risk of a big fine in February this year, sources close to the affair have said it ignored early warnings of the risks it faced. They pointed out that the alleged offending transactions being investigated by U.S. authorities continued until 2009. The French newspaper's report, written as talks accelerate towards a possible $10 billion fine and other penalties, said Stuart Levey, then the U.S. Treasury Under Secretary for Terrorism and Financial Intelligence, made a visit to Paris in September 2006. The paper, drawing on the findings of its own investigation, said Levey met the bank's top officials, including Baudoin Prot, who has since become chairman, in its boardroom. Levey was there not to talk about

The Sri Lankan rupee edged down from a near a one-year high on Friday as importer dollar demand outpaced greenback sales by banks and exporters while state banks bought dollars to prevent volatility, dealers said. _0"> The rupee ended at 130.25/28 per dollar, little changed from Wednesday's close of 130.25/27, which was its highest since June 28, 2013. Both the forex and stock markets were closed on Thursday for a public holiday. "There was late importer dollar demand," said a currency dealer asking not to be named. The two state banks, through which the central bank intervenes to direct the market, bought dollars at 130.25 rupees, as the central bank is allowing a gradual appreciation in the local currency to prevent shocks, dealers said. Dealers said exporter dollar sales picked up on expectations that the rupee would strengthen further. The central bank bought dollars at 130.35 rupees on May 30 and started lowering its buying rate since then, allowing a

British payday lender Wonga said its co-founder Errol Damelin had quit as a director of the company, just seven months after stepping down as chief executive. _0"> Wonga is one of the biggest short-term lenders in Britain and has come under fire, along with the industry as a whole, for the high level of interest rates it charges. Its rates can equate to as much as 5,853 percent a year, though its loans are only supposed to be held for a short period of time, often to provide funds for someone until they are paid. Britain's financial regulator is planning to impose tougher rules on the industry. Wonga said on Friday Damelin, who co-founded the company in 2006, had indicated in November he wanted to begin an orderly exit from the firm so he could start working on new business ventures. He stepped aside as chief executive at that time and became chairman. "He is now happy that the migration to a senior team suited to running a large and regulated financial services

In the struggle to explain this year's collapse in volatility and volume in financial trading, one newly-nominated culprit is central banks' intent to use every tactic available short of raising interest rates too soon. It sounded like a deeply contrarian view on Friday after comments by Bank of England Governor Mark Carney, but a study by analysts from market heavyweights HSBC this week argued that the use of macroprudential steps will make central bank interest rates in general less volatile in future. Implicitly that may mean markets see less marked swings. The global economy is right at the point, as the economic fates of Japan, Europe and the United States diverge, when an upturn in trading action could be expected due to the growing chances for arbitrage between future interest rates. Yet volatility, which traders depend upon for profits, is at rock bottom. Trading in currencies on the biggest platforms has fallen by a third to half in the past year; options contract

British construction output grew faster than previously thought in the first quarter, new figures showed on Friday, but could slow in the next three months, particularly after the government took steps to cool the housing market. Finance minister George Osborne said on Thursday that he would give the Bank of England stronger powers to curb mortgage lending, while BoE Governor Mark Carney said interest rates could rise sooner than financial markets expect. The comments sent sterling and short-dated British government bond yields soaring and caused shares to plunge, with housebuilders particularly hard hit. Some 1.7 billion pounds ($2.85 billion) has been wiped off the value of the six housebuilders and two property groups. Economists say Osborne's announcement means the Bank may adopt a more direct approach when trying to curb mortgage lending. It is expected to announce more controls after its Financial Policy Committee meeting next week. The moves should help take some heat o

The leader of South Africa's AMCU union said on Friday a wage deal with the top three platinum producers was imminent, signalling a possible end to a crippling five-month strike that has disrupted global output of the metal. Workers from the Association of Mineworkers and Construction Union (AMCU) begged leader Joseph Mathunjwa on Thursday to end the country's longest mining strike and sign the latest offer - an increase of about 20 percent, or 1,000 rand ($93) a month. Mathunjwa told Johannesburg radio he would take the offer to more AMCU members at mines on Friday, before meeting with management at Lonmin , Anglo American Platinum and Impala Platinum later or over the weekend to relay the response of his miners to their offer. "At least there is light at the end of the tunnel, which is not the light of a goods train," he told Talk Radio 702. The main outstanding sticking point was whether the wage deal should stretch over three or five years, he said. "W

Investors braced on Friday for a UK interest rate hike later this year, pushing sterling to five-year highs and hurting property stocks, after the head of the Bank of England said rates may rise sooner than markets predict. Governor Mark Carney's surprisingly stark warning late on Thursday prompted investors to bring forward expectations for a first BoE rate hike by nearly four months, to December from the first quarter of 2015. Sterling's trade-weighted index posted its biggest one-day rise in four months, hitting 5 1/2-year highs. Short-dated UK government bond yields were on track for their biggest daily gain in more than three years. A rate hike by the end of 2014 is likely to come at least six months before the U.S. Federal Reserve tightens policy. It would contrast sharply with the European Central Bank, which cut rates last week and is likely to ease policy in the coming months. "The BoE seems to be slightly ahead of the Fed as far as rate hikes are concerned,&