Standard Chartered settlement

British bank Standard Chartered has reached a $340m settlement with the New York bank regulator. The settlement follow allegations the bank hid $250bn of transactions with the Iranian government, breaking US sanctions. The bank rejects the claims.

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Standard Chartered shares continue to rise

Standard Chartered shares continued to recover in mid-morning London trading today following the bank's settlement agreement with New York regulators.

Shortly after 10am, the scandal-hit bank's shares were trading 3.94% higher at 1,424.00 as investors reacted to the $340 million settlement.

The British bank saw £6 billion wiped from its value in the immediate aftermath of the allegations that it hid transactions with the Iranian government.

The quick and decisive action which Standard has shown in settling this initial claim, which itself is lower than anticipated, has resulted in a further spike to the share price in early trade.

The market will remain cautious until the extent of any further regulatory sanction is known, but in the meantime Standard appears to have taken its rap on the knuckles and is preparing to move on.

– Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers

Standard Chartered shares open higher after settlement

A woman walks down the stairs of the Standard Chartered headquarters in Hong Kong October 13, 2010.
Standard Chartered suffered a huge stock drop after the allegations were made Credit: Reuters/Bobby Yip

Standard Chartered shares opened 5.15% higher in London trading this morning after yesterday's announcement of its settlement with New York regulators.

The British bank has agreed a $340 million settlement over allegations it hid $250 billion of transactions with the Iranian government.

However, shortly after opening the bank's shares slipped slightly to 1,412.50 - up 3.07% from yesterday's market close.

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Standard Chartered rejects portrayal of its Iranian transactions

New York Financial Services Superintendent Benjamin Lawsky made the allegations against Standard Chartered on August 6, saying it was a "rogue institution" for breaking US sanctions for hiding transactions with Iran.

Today's announcement comes after Standard Chartered's Chief Executive Peter Sands, who strongly denied the allegations last week, flew to New York to take personal control of the bank's attempts to reach a settlement.

In a statement released last night, Standard Chartered Bank said it "strongly rejects" and "contests" the New York regulators' portrayal of its transactions with Iranian banks.

Standard Chartered agree settlement and reform

Standard Chartered Plc has agreed to pay $340 million to settle allegations that it hid transactions with Iran from regulators, the New York Department of Financial Services has announced.

Standard Chartered's offices in the City of London. Credit: Press Association

In addition to the civil penalty, the bank agreed to install a monitor for at least two years to evaluate the bank's money-laundering risk controls in its New York branch, the department said in a statement.

The department also said it had adjourned a hearing set for Wednesday at which it had called on Standard Chartered to demonstrate why its New York state banking license should not be revoked.

"The parties have agreed that the conduct at issue involved transactions of at least $250 billion," the department said in a statement.

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