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

Emptywheel Twitterverse
JimWhiteGNV @biasedreporter Not that I've seen on either front.
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JimWhiteGNV @biasedreporter He gets attacked all the time because he's good. I'm sure he laughed at it taking this long to get a hit piece in Politico.
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JimWhiteGNV RT @kirkmurphy: You speak for Iraq war crimes, @DavidFrum. You earned Nuremberg's short drop,but life in The Hague will do. #cdnpoli https:…
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bmaz @RMFifthCircuit @WerlySportsLaw In some fairness, CA8 has cleared a lot of crim cases lately, maybe were just backed up on the impt stuff.
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JimWhiteGNV RT @davidsirota: You represent an administration that has used the Espionage Act against whistleblowers https://t.co/7mFAtZ9yDl https://t.c…
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bmaz @RMFifthCircuit So then they would affirm if CA2 did?? Not sure I buy their concern for split. But, dang, "something" is going on!
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bmaz @RMFifthCircuit Not sure why they would do that, but who knows?
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JimWhiteGNV RT @ChMadar: Good to see an op-ed on a war crime. Bad to see few op-eds about Afghan War's big picture: strategy, costs, morality https://t…
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emptywheel That's right: When do we get our 5th anniversary OBL porn stash reenactment, Intel Community? WHEN!?!?!?! https://t.co/Nln8rvneO3
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JimWhiteGNV @samsteinhp Curt Schilling, Urban Meyer
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bmaz RT @AriMelber: Breaking: No charges in VA tasing death Officer who tased 15x said suspect grabbed it - but his hands were cuffed: https://…
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JimWhiteGNV RT @kevinjonheller: You mean the doctor who gave fake vaccines, discrediting Western medicine and causing untold suffering to innocents? ht…
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