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
emptywheel @lmbrownlee1 Oh, I can't do that anymore. I can beer and benghazi, but not tequila.
16mreplyretweetfavorite
JimWhiteGNV @joanneleon @emptywheel Younger daughter's boyfriend is a delivery boy for a wine store. At 17 years old...
19mreplyretweetfavorite
emptywheel @JimWhiteGNV Oh, you're going to like what I'm writing. You're going to like it very much.
22mreplyretweetfavorite
JimWhiteGNV “@KatieIsSoWhite: Car goals http://t.co/5kcdFDplXe” Probably some truth in advertising there.
35mreplyretweetfavorite
emptywheel RT @conor64: House Republicans spend months investigating aftermath of illegal war with laser focus on one part that broke no laws.
35mreplyretweetfavorite
emptywheel RT @HanniFakhoury: Ireland asks European Commission to support Microsoft in case involving US warrant to seize emails stored abroad: http:/…
37mreplyretweetfavorite
emptywheel Should I write my expose of this report, "What it would look like if Alan Grayson had been on the committee"?
37mreplyretweetfavorite
emptywheel @THE_REAL_TRENCH Already a thing.
39mreplyretweetfavorite
JimWhiteGNV @emptywheel I suggest a pair of those large animal vet gloves that go up to the shoulders.
40mreplyretweetfavorite
emptywheel Aw hell. I'm gonna have to give this Benghazi report a close scrub. SEND BEER!
48mreplyretweetfavorite
bmaz @BaburRealer @mattdpearce This is not unusual.
52mreplyretweetfavorite
emptywheel Why does Benghazi report source an event it claims took place in September to an August report? Damnit, I'm going to have to read it now.
52mreplyretweetfavorite
August 2012
S M T W T F S
« Jul   Sep »
 1234
567891011
12131415161718
19202122232425
262728293031