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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bmaz @JustADCohen Ahem, the 9th Circuit sometimes does better than that on key O/A's
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bmaz @jaketapper Just wait until the first day of college, there will be something in your eye and something not in your wallet.
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bmaz @astepanovich Access journalism at its finest.
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bmaz RT @lawfareblog: Jack Goldsmith: "A New Tactic to Avoid War Powers Resolution Time Limits?" http://t.co/RYz0QWinDt
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bmaz I've been asking the question about 60 timing w/rolling+evolving WPR notifications for weeks. Goldsmith catches on: http://t.co/pAwSXMQtoB
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emptywheel @TheFree_Lance I'd say its problem it in viewing politics as nothing more than a game. But, yeah, doesn't necessarily bode well.
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emptywheel Correction: New WaPo publisher EDITED a book abt St. Ronnie wisdom. Didn't write it. http://t.co/8fs39QtUqH
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emptywheel RT @just_security: .@RParekh88: "UK PM @David_Cameron's new counter-terrorism measures" http://t.co/pS2af3ioyh cc @terrorwatchdog @ukhumanr
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emptywheel @PhilPerspective I guess we can stop holding our breath hoping that Fred Hiatt will ever lose his job.
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bmaz @BradMossEsq @cody_k It contemplates warrants and real probable cause you know Brad!!
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emptywheel Jeff Bezos hires guy who wrote entire book abt Reagan "wisdom" as publisher of WaPo. http://t.co/8fs39QtUqH
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JimWhiteGNV With all the new wars DC tried to roll out in August, I shudder to think what September has in store for us.
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