COMMENTARY
The settlement amounting to $340 million is 'chump change' for this bank.

One has to wonder how much is the profit arising from the alleged $250 billion of illegal transactions ... a 1% fee accruing to the bank would be around $2,500 million if I have my zewroes correct. If fees accruing are a higher ... say 4% ... then the profit contribution would be $10 billion.

No wonder the bank executives are settling in the interest of their investors and 'customers'. But for society as a whole the bank executives are selling out, as they have done in a systemic way for the past several decades.

It is time society demanded something a lot better from the banks.

It should be noted that society cannot rely on rule of law amd the body of rule and regulation to get the banks to do right for society. The framework of law has been compromised by powerful banks and their lobbyists over a very long period of time. The rules in the courts make it difficult and expensive, if not impossible to get meaningful convictions. The issue has to be handled in part by the society and the general public who should show quite forcibly that they will not put up with this any more.
Peter Burgess

Standard Chartered agrees $340m settlement ... UK bank agrees to pay sum a day before scheduled hearing on allegations it hid $250bn worth of Iran client transactions.

The US Treasury Department said the settlement would not halt its own investigation of Standard Chartered [EPA]

Standard Chartered has agreed to pay $340m to settle allegations that it hid $250bn in transactions with Iran from New York state regulators in violation of US sanctions.

The settlement was announced on Tuesday by New York's Department of Financial Services (DFS) and came less than 24 hours before the London-based bank was scheduled to defend itself against the allegations at a hearing in the US.

Under the terms of the settlement, the bank agreed to its transactions being monitored for two years and to appoint auditors to investigate compliance with US sanctions.

The Treasury Department told the AFP news agency that the settlement would not halt its own investigation.

'Our investigation continues. Treasury will continue working with our regulatory and law enforcement partners to hold Standard Chartered accountable for any sanctionable activity that occurred,' an official said.

The Department of Justice said it would also continue to 'determine what actions might be appropriate'.

Standard Chartered said its decision to agree to pay the $340m was a pragmatic one made in the best interest of shareholders and customers.

A spokesman for the bank said it remained in talks with other US regulators and that an announcement on the timing of any resolutions would be made in due course.

'Rogue bank'

Although the agreed upon cash settlement may appear to be steep, it is far from the worst-case scenario for the bank.

The DFS on August 6 branded Standard Chartered as a 'rogue bank' and threatened to revoke its licence.

Since the allegations became public just over a week ago, the firm's shares have lost about 15 per cent of their value.

The allegations also thrust Standard Chartered into the centre of a major geopolitical dispute.

In the last decade, the US and its allies have ramped up sanctions against Iranian banks, institutions and individuals, accusing them of helping the government seek a nuclear weapons, repress rights and fund terrorism.

US authorities accused Standard Chartered of throwing the doors of the financial system wide open to 'terrorists, weapons dealers, drug kingpins and corrupt regimes'.

Source: Agencies