A New York bank regulator's broadside against Standard Chartered Plc for allegedly hiding $250 billion in transactions tied to Iran left investors and the bank questioning the motive for the ambush, which wiped $17 billion off its value.
London-based Standard Chartered hit back at the New York State Department of Financial Services (DFS) threat to tear up its state banking licence on Tuesday, dismissing the charge that it was a "rogue institution" that "schemed" with the Iranian government as a distortion of the facts.
Bank insiders were as shocked as investors by the ferocity of the DFS accusations over its involvement with Iran, which is subject to U.S. sanctions over its nuclear programme.
Chief Executive Peter Sands scrambled back from his vacation as the bank held hastily convened conference calls to plan its defence and try to limit the damage caused to its reputation.
The U.S. agency said Standard Chartered hid 60,000 secret transactions to generate
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