Standard Chartered shares plummet

MORE than £6bn was wiped from the value of Standard Chartered today after the banking giant was accused of hiding 250 billion US dollars (£160bn) of transactions with the Iranian government.

In the latest blow to the reputation of a UK-based bank, regulators in New York said Standard was a “rogue institution” which broke sanctions imposed on Iran, exposing the US to terrorists, drug kingpins and weapon dealers.

Standard, one of the top five largest banks in the UK by market value, said it “strongly rejects the position or the portrayal of facts” set out in the order by the New York state’s Department of Financial Services.

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However, its shares slumped by 18 per cent today on top of the six per cent decline after the accusations were made just before the close of the London market yesterday.

Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: “There is some irony that, a few days after describing its approach as ‘boring’ at its interim results, Standard Chartered should become embroiled in yet another potential banking scandal.

“The allegations serve to add more risk to an already beleaguered sector.”

The investigation’s findings come after fellow British bank HSBC was accused of allowing drug cartels and rogue states to launder billions of pounds through its US arm.

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The bank, which employs nearly 90,000 people worldwide and is primarily focused on Asian markets, has been called to appear before regulators on Monday to explain the apparent violations and defend its licence to trade on the New York Stock Exchange.

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