We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedGovernance

BoE governor questions NY regulator move in StanChart case

Standard Chartered shares have fallen heavily on news it hid Iran transactions from US regulators

Article comments

The Bank of England governor on Wednesday questioned a New York regulator’s decision for going “public” on Standard Chartered allegations of hiding Iran transations when the investigation was ongoing.

The British investment bank won support from Mervyn King on Wednesday in its fight against the New York banking regulator's allegations that it had hidden $250 billion (£159.7 billion) of transactions with Iran.

The London-based bank lost more than a quarter of its market value in 24 hours after the New York State Department of Financial Services threatened late on Monday to strip it of its state banking licence, dubbing it a "rogue institution" for breaking US sanctions against Iran.

King drew unfavourable comparisons on Wednesday between this case and other US action against British banks, such as the Libor rigging investigation into Barclays where transatlantic regulators coordinated efforts.

He said in Standard Chartered's case, "one regulator but not the others has gone public while the investigation is still going on".

The bank's top executives were working on its defence strategy on Wednesday, having already contested the regulator's figures, saying only a tiny proportion of the Iran-related transactions - less than $14 million - were questionable under U.S. sanctions rules.

Sources familiar with the matter told Reuters that the New York regulator Benjamin Lawsky had angered officials at the US Treasury Department and Federal Reserve by going it alone.

"I think all the UK authorities would ask is that the various regulatory bodies that are investigating the particular case try to work together and refrain from making too many public statements until the investigation is completed," said King.

Standard Chartered shares were up 7.4 percent at 1,319.5 pence at 1100 GMT on Wednesday, boosted by the apparent disunity among US regulators, though they were still about 17 percent down since Lawsky made the allegations.

photo credit: Reuters



BoE governor questions NY regulator move in StanChart case

What makes a good board report?

What makes a good board report?

Examining how CFOs can improve the way they report back to the boardmore ..

Vodafone buys out partner's stake in Indian unit

Mobile giant acquires the remaining 11% it did not already ownmore ..

Financial advisers not being clear enough on charges, says watchdog

FCA’s review found 73% of firms failed to provide adequate informationmore ..

EU data retention rules violate privacy rights, EU court rules

Rules requiring telcos to retain communications metadata are disproportionate, the court saidmore ..

Examining the issue of corporate litigation funding

Litigation funding is a very useful tool for CFOs but not a panacea for all legal mattersmore ..

Corporate governance: A catalyst for innovation

Corporate governance is a powerful tool in a C-suite executive’s arsenalmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..


* *