Exclusive: Standard Chartered, regulators in settlement talks

Fri Aug 10, 2012 6:48pm EDT

An exterior view of the Standard Chartered headquarters is seen in London August 7, 2012. REUTERS/Olivia Harris

An exterior view of the Standard Chartered headquarters is seen in London August 7, 2012.

Credit: Reuters/Olivia Harris

(Reuters) - Standard Chartered is in talks with multiple law-enforcement officials, including New York's banking regulator, to resolve a probe into improper Iranian money transactions by the British bank, according to people familiar with the situation.

The settlement negotiations are expected to last through the weekend and could result in a resolution by next week, these people said. The negotiations are at a delicate stage and could collapse, they added.

The negotiations come after a rancorous week that began when Benjamin Lawsky, superintendent of the New York Department of Financial Services, alleged in an order on Monday that the bank processed thousands of illegal transactions tied to Iran and that Standard Chartered had covered up its actions using incomplete or false records.

Lawsky demanded that Standard Chartered officials appear at his office next Wednesday to explain why the bank should be allowed to keep doing business in New York, a global hub for the processing of dollars. The hearing remained on the calendar as of Friday afternoon.

Lawsky's order not only shocked the bank but also federal and local regulators. The bank had been cooperating in a months-long probe and subsequent settlement talks with federal and local regulators.

The U.S. Justice Department, Federal Reserve Bank of New York and Manhattan District Attorney's office had been engaged in those talks.

(Reporting by Carrick Mollenkamp; Editing by Richard Chang)

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Comments (5)
Daleville wrote:
I wish the government agencies would stop trying to reach settlements with all these banks and mortgage lenders and start putting people in jail.

Revoke SC’s charter immediately. A settlement is not good enough by half.

Aug 10, 2012 7:18pm EDT  --  Report as abuse
edgyinchina wrote:
Just another story to try to make the American public feel good that pols are actually doing something…. which of course they are NOT….
Just a bunch of air…. nothing will happen. No one will be held responsible, no one will go to jail, and the sheeple will all feel like the pols are trying to do something…. what a joke….

Aug 10, 2012 8:54pm EDT  --  Report as abuse
tmc wrote:
So, they are immune to financial crimes, only ordinary people are prosecuted for those. Now it seems they are above political/economic and international crimes. At this rate they will actually be able to kill you if you don’t pay your interest. How do we stop this madness?

Aug 11, 2012 6:25am EDT  --  Report as abuse
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