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Standard Chartered Probe By New York State Department Of Financial Services Irks Other Regulators
“The U.S. Treasury Department and Federal Reserve were blindsided and angered by New York’s banking regulator’s decision to launch an explosive attack on Standard Chartered Plc over $250 billion in alleged money laundering transactions tied to Iran, sources familiar with the situation said. . . .
As part of a review the bank sought to give to regulators, Standard Chartered hired Promontory Financial Group . . . to review Standard Chartered’s transactions tied to Iran. The bank’s review ultimately settled on the figure of less than $14 million for improper transactions.
Lawsky’s agency also received the Standard Chartered internal review, according to people familiar with the situation. But the new regulator had little interest in a settlement that didn’t yield embarrassing details about Standard Chartered’s activities, these people said.” (Huffington Post)
The announcement alone knocked $17 billion off the bank’s market value and put the new regulator on every front page.
FEE Timely Classic
“Regulatory Extortion” by Thomas J. DiLorenzo
Brought to you by The Freeman Magazine a publication from the Foundation for Economic Education. Love economics? Like FEE on or follow us on Twitter!
2012-08-08 08:25:50
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