In August 2012, the New York State Department of Financial Services – a new regulator, formed in October 2011 to simplify and beef up supervision of finance in the state – accused the bank Standard Chartered of running a scheme to deal, illegally under US law, with the Iranian government. The regulator said that the bank had been operating the scheme/scam for a decade and had used it to hide more than $250 billion in deals. The bank’s response was unequivocal:
‘Standard Chartered strongly rejects the position and portrayal of facts made by the New York State Department of Financial Services.’
It turned out that, once translated out of bank-speak, this meant ‘we did it.’
So these city traders (boys will be boys) initially fought the law, but the law won.
In September the bank paid $340 million to the DFS in settlement, then in December another $227 million to the DoJ and $100 million to the US Federal Reserve, and accepted a ‘deferred prosecution arrangement’ in which the authorities said they wouldn’t prosecute the bank if it abided by the conditions made in the settlement agreements.
‘Standard Chartered strongly rejects the position and portrayal of facts made by the New York State Department of Financial Services.’
It turned out that, once translated out of bank-speak, this meant ‘we did it.’
So these city traders (boys will be boys) initially fought the law, but the law won.
In September the bank paid $340 million to the DFS in settlement, then in December another $227 million to the DoJ and $100 million to the US Federal Reserve, and accepted a ‘deferred prosecution arrangement’ in which the authorities said they wouldn’t prosecute the bank if it abided by the conditions made in the settlement agreements.
No comments:
Post a Comment