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.

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

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bmaz Skimmed by Olbermann on ESPN2. Gotta say, Frank Caliendo is still the least funny guy in sports today. He has never been funny. #Stop
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bmaz @LittleMsHaldol @ThisIsJoshSmith Well, right back at you, you human pig.
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bmaz @espinsegall @rickhasen @MikeSacksEsq Are you new to Kozinski?? That is not a shocker at all.
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bmaz RT @themarkberman: Account by @azcentral reporter who witnessed the execution: "I counted about 660 times he gasped." http://t.co/fjvkp0vA6r
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bmaz @Greg651 @rickhasen Seemingly, but it is not inconsistent if you go back even further into the 90's Kozinski navel gazing on DP. Still same.
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bmaz @rickhasen @espinsegall @MikeSacksEsq Heh, yeah, I didn't think so! Kozinski has always had a complex view, but never anti. Still not anti.
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bmaz @Greg651 Thank you for sending that my way. Pretty much exactly what I expected.
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bmaz I warned people not to take Alex Kozinski's words in Wood dissent as evincing new anti-DP stance. I was right. http://t.co/6sGNEaOqmH
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bmaz @ericghill Please, don't confuse "All Things Considered" with this twit's stuff
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bmaz @afc1969 @ThisIsJoshSmith Yeah, maybe not. Not sure what happened, but the tweet was asinine and crass. To be kind.
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bmaz @afc1969 I have no idea why Twitter reflected it was dead. I don't think I miscopied it, but it is certainly possible.
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bmaz @afc1969 Yeah, dunno. It was a direct copy of the URL to his tweet. That is all I know. In fairness, this was it https://t.co/mAWU1hdHas
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