US government investigating 2 major French banks

Societe Generale SA headquarters in Paris, France.
Balint Porneczi | Bloomberg | Getty Images
Societe Generale SA headquarters in Paris, France.

Two French banks are under investigation for alleged money laundering and certain dealings in Iran, Sudan and Cuba that may have violated sanctions, according to an article in the Wall Street Journal.

The U.S. Treasury Department, the Justice Department, the Manhattan district attorney, and the New York Department of Financial Services are looking into Société Générale and Crédit Agricole. The move comes not long after French bank BNP Paribas announced it was setting aside more than $1 billion to pay fines it incurred for violating U.S. sanctions in Iran and Cuba.

Société Générale recently spent $122 million settling a lawsuit with the Federal Housing Finance Administration over claims the bank had misled Fannie Mae and Freddie Mac over purchases of mortgage backed securities.

To read the full story on WSJ.com, click here.

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