Sunday, September 2

$340 M of Iran shops pay Standard Chartered

Standard Chartered will pay a penalty of $340 million to the NY State Department of financial services, reports CNBC Kayla swap. Offer CNBC by John Carney and Bob Pisani, perspective.

(Updated 19: 51 East) NEW YORK--Standard Chartered PLC $340 million of New York Bank control over transactions relating to Iran, one quickly arranged deal probably its shareholders cheer pays to.

The deal with New York Superintendent of financial services Benjamin Lawsky still the British Bank with a view to a separate probe of Iran-linked transactions by other US authorities.

The deal on Tuesday limited a week transatlantic tensions and a sensation of why a national authority had stung from the other authorities.

The resolution prevents a hearing on Wednesday at which the Bank was created in order to demonstrate why its license business in New York to do not should be lifted.

Ian Gordon, analyst at Investec securities in London, said that a further regulatory costs "appear sufficient contained" allow the risk the Bank shares, at a rally from its lows to build, after Lawsky last week brought his case.

"Standard Chartered Management team conducted himself perfectly in the face of extreme provocation", said Gordon.

The Bank shares rose to close announcement on Tuesday before the Lawsky 2.74 percent to 1,370 pence.

Lawsky Standard Chartered called on 6 August, "rogue institution", the US sanctions against the Iran had broken, say it hid Iran-linked transactions with a total value of $250 billion by regulators.

Lawsky order came the stock price and top executives from holiday back to London rush as a bolt from the blue, that Bank said, is to bring. Bank of England Governor Mervyn King said that Lawsky not in line with other US authorities. And Standard Chartered strongly disputed the allegations that illegal transactions was Managing Director of Peter sands to less than $14 million.

In his announcement on Tuesday, Lawsky said the Bank had "agreed that the behavior involved in questionable transactions of at least $250 billion." But he gave no details about what protection of the deal Standard Chartered gave. (

Standard Chartered confirmed that the two sides reached an agreement, including the payment of $340 million, and said detailed conditions would be completed soon.

"It was a pragmatic decision in the best interests of shareholders and customers," a spokesman for the Bank said.

In addition to the punishment, so Lawsky agreed to check the Bank to an external monitor for at least two years on controls on money laundering at its New York branch.

Lawsky the aggressiveness exacerbates his public profile only a few months after the Department of financial services, the agency that he heads was created regulators from the State-owned banks and insurance companies.

Minutes the announcement, New York Governor Andrew Cuomo praised the "effectiveness and leadership" of the new agency.

"New York needed a hard and fair regulator for the branches of banks and insurance companies to protect consumers and investors," Cuomo said.

But Lawsky fire by jumping before a two year probe into standard chartered by the US Treasury, the Federal Reserve, the Justice Department and New York prosecutors pulled.

"It is very unfortunate that this was not as global state and federal settlement," said Ed Wilson, a former Chief lawyer at the US Treasury.

Run the Bank talks of negotiations with Lawsky last week and this week separately with other authorities. He had hoped to land a deal on both sides, but the solo announcement Lawsky, the Tuesday that had not happened made it clear.

Underlines a continuing Division with Lawsky, the other authorities issued short statements to say that she would continue to work together.

"Treasury on standard chartered for any third party work with our State and federal partners work account that can occur," said the Treasury Department.

The Fed said it ", one with the other agencies comprehensive solution."

The Ministry of Justice defended his record in combating money laundering and said that it worked with his legal and other partners "to determine which actions in this matter may be appropriate."

The Manhattan District Public Prosecutor's Office also said that it would continue to work with its partners to breaches of the sanctions.

Jimmy Gurule, a former State Secretary for enforcement at the Department of the Treasury, now a law professor at Notre Dame said that Lawsky may have acted out of frustration that the federal authorities moved too slowly.

"I sometimes think there probably was some desperation, some frustration on the part of the New York State regulators of the federal authorities," Gurule said.

At the end the Lawsky, a settlement which was paid on par with fines from a handful of other banks, which had not properly done with sanctioned States such as Iran and Cuba won Office. In 2010, Barclays PLC paid $298 million a joint probe with federal and New York authorities to rules.

Lloyds banking group and Credit Suisse Group have previously agreed settlements of $350 million and $536 million, or to pay. ING Bank NV paid a settlement of $619 million. Holdings plc is currently of the U.S. law enforcement ever analysed filings by bank HSBC.

Copyright 2011 Thomson Reuters.

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