Standard Chartered Bank Admits Promontory’s Estimates of Its Iran Business Were Wrong

Standard Chartered just settled with NY’s Superintendent of Financial Services. The settlement–for $340 250 million and a monitor of SFS’ choosing–is less than some reports said the settlement might have been.

But here’s the detail I’m most interested in:

The New York State Department of Financial Services (“DFS”) and Standard Chartered Bank (“Bank”) have reached an agreement to settle the matters raised in the DFS Order dated August 6, 2012. The parties have agreed that the conduct at issue involved transactions of at least $250 billion. [my emphasis]

Just a .14% fine, so not that big. But an admission that the scope of the fraud and the Iran business really did amount to $250 billion.

I find that interesting for two reasons. First, because it’s going to cause all kinds of headaches for the folks at Treasury who would like to let SCB off easy but ordinarily base settlements on the amount of the underlying activity.

More importantly, for me, because it demonstrates what a sham the Get Out of Jail Free industry is. A former OCC head and his minions at Promontory Financial Group claimed to have added it all up and determined that SCB only hid $14 million of transactions from Iran. SCB now says that Promontory was wrong.

By orders of magnitude.

Granted, SCB–and most of the people who pay Promontory to soft-pedal their crimes and risk–tried not to admit it had gotten that estimate from Promontory. Going forward, I expect we’ll see Promontory’s clients hide their involvement even more.

Still, this is a useful demonstration of how corrupt the Get Out of Jail Free industry is.

Update: Once again, I got my numbers wrong. The settlement is for $340 million.

Tweet about this on Twitter0Share on Reddit0Share on Facebook0Google+0Email to someone

12 Responses to Standard Chartered Bank Admits Promontory’s Estimates of Its Iran Business Were Wrong

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
Emptywheel Twitterverse
bmaz @USPSHelp It has all been found! Thank you!
4mreplyretweetfavorite
JimWhiteGNV RT @GatorZoneBB: #Gators Ranked No. 6 in Collegiate Baseball Preseason Poll #ItsGreatUF http://t.co/FU12KqXCw7
3hreplyretweetfavorite
emptywheel @Popehat can you also represent me in suit v ZD30 for facilitating Party's illegal leaks?
3hreplyretweetfavorite
emptywheel @NickBaumann Any reason to believe she--who bought house in own name-- covert? Even people who were govt has shown great negligence with
4hreplyretweetfavorite
emptywheel @dnvolz not at all. They've used "torture" for some time.
4hreplyretweetfavorite
emptywheel Glad NYT calling for torture prosecution. Pretty funny to call those who refuse to use T-word blinkered apologists bc NYT just adopted Tword
4hreplyretweetfavorite
emptywheel Remember Curveball? Turns out torture has a Curveball too. http://t.co/b5LvTDojEX
4hreplyretweetfavorite
emptywheel Add torture and the Internet dragnet to Bush programs partly justified by a fabricator. http://t.co/b5LvTDojEX
5hreplyretweetfavorite
JimWhiteGNV RT @GreggJLevine: How false witness helped CIA make a case for torture //very excited to welcome @emptywheel to the pages of @AJAM http://t…
5hreplyretweetfavorite
emptywheel RT @GreggJLevine: How false witness helped CIA make a case for torture //very excited to welcome @emptywheel to the pages of @AJAM http://t…
5hreplyretweetfavorite
JimWhiteGNV Werner was basketball Driskel. RT @gatorhoops: @APMarkLong Werner had Charlie Brown syndrome, a.knack.for making losing plays.
6hreplyretweetfavorite
JimWhiteGNV One of four genetic tests #FBI used on #anthrax samples had 43% false negative rate. Still used it! #Amerithrax https://t.co/3yUk5sKX7n
6hreplyretweetfavorite
August 2012
S M T W T F S
« Jul   Sep »
 1234
567891011
12131415161718
19202122232425
262728293031