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 Twitter9Share on Reddit0Share on Facebook2Google+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 @armandodkos That's bullshit. Now you are attacking people who agree with you for not agreeing with you enough. Now that's absurd.
4mreplyretweetfavorite
bmaz RT @benwizner: Must read. @saribashi See my article on why lifting the closure of #Gaza is a win-win situation. Time to Re-open Gaza http:/…
8mreplyretweetfavorite
bmaz @armandodkos Can't see that anybody has been muzzled on this. Quite the opposite.
9mreplyretweetfavorite
emptywheel @LOLGOP Doesn't that CBS poll linked at HuffPo say it was in the field from 7/5 until 7/24?
10mreplyretweetfavorite
JimWhiteGNV I bought Harley this food bucket on Friday and it is nearly destroyed in less than a week. Ingrate. http://t.co/MxxCvn38sW
15mreplyretweetfavorite
emptywheel @LOLGOP Also, 19 days in the field is state of the art methodology.
17mreplyretweetfavorite
bmaz @armandodkos And, notably, neither have any of the judges, even the ones who ruled against it.
17mreplyretweetfavorite
bmaz @armandodkos Like I said, I prefer King and believe the Admin should and will win. I do not, however, think the argument is bad faith.
17mreplyretweetfavorite
emptywheel @onekade Silly. We only need to worry about Pakistan's nukes!
21mreplyretweetfavorite
emptywheel @mattblaze Once drove many hours to a wedding a week early. @astepanovich
27mreplyretweetfavorite
emptywheel It took > year for DEA to respond to Ranking SJC Member @ChuckGrassley's Qs abt guy left for 5 days, Daniel Chong. http://t.co/8hPr7bYkaY
35mreplyretweetfavorite
JimWhiteGNV RT @UNRWA: #Gaza: Nothing & nobody is safe. To date, 7 UNRWA staff members killed. Today, for at least the 6th time, an UNRWA emergency she…
43mreplyretweetfavorite
August 2012
S M T W T F S
« Jul   Sep »
 1234
567891011
12131415161718
19202122232425
262728293031