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 RT @billmon1: BREAKING: Intel sources tell @cnn absence of ISIS holiday attacks an ominous sign, urge Americans to be afraid other 364 days…
6hreplyretweetfavorite
bmaz RT @DanCBarr: Yeah, I think they are ready. @HeatherOReilly: Last practice selfie! #USWNT #WWCFinal http://t.co/oa09nY3rLd
6hreplyretweetfavorite
bmaz The Activist Roberts Court, 10 Years In http://t.co/MlhkqxIUtE Outstanding, and spot on, take by @NYT Editorial Board
6hreplyretweetfavorite
bmaz @barrettmarson Oh, fine, NOW you show up. Time for a beer soon methinks.
6hreplyretweetfavorite
bmaz @nigelduara Ha! Here is a value added fact for you: Long ago, there was a Wigwam Motel in Tempe where Barrett Honors College at ASU is now.
6hreplyretweetfavorite
bmaz @jayrosen_nyu @tomwatson I am with Mr. Watson here. This is manufactured Clinton Rules petulance by the press.
6hreplyretweetfavorite
bmaz RT @avocadofact: who would you rather have in office? rt for an avocado. fav for donald trump. http://t.co/aZBQ8uZWG0
6hreplyretweetfavorite
bmaz @nigelduara Holbrook? I hope you are staying in the Wigwam Motel! http://t.co/s6vORFsHR3
6hreplyretweetfavorite
bmaz @AllThingsHLS Yeah, it is seriously good.
6hreplyretweetfavorite
bmaz @AllThingsHLS Yep, Lake Union. Last time we were there had deck table at Daniel's on Lake Union for the show.
6hreplyretweetfavorite
bmaz @AllThingsHLS Also, happy 4th up there. Been in Seattle on 4th before, some truly great fireworks shows. Hope you are BBQing
7hreplyretweetfavorite
August 2012
S M T W T F S
« Jul   Sep »
 1234
567891011
12131415161718
19202122232425
262728293031