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
bmaz RT @Honeygirl_Music: Fun show at @Tarbells last night!! We'll do it again soon and you won't want to miss! Check http://t.co/pvKJFBkZaH for…
1mreplyretweetfavorite
bmaz Hey, if you all ever get a chance to see @DwntwnKiraBrown and @Honeygirl_Music live get thee there. They are absolutely killer.
2mreplyretweetfavorite
bmaz DNA Sequence Analysis Shows Ebola Outbreak Naturally Ocurring, Not Engineered Virus https://t.co/joVsaLqx6e Superb analysis by @JimWhiteGNV
8mreplyretweetfavorite
JimWhiteGNV RT @Cmdr_Hadfield: The excellent many erasing the small-minded actions of the very few. Thank you, good people. http://t.co/LsSeg9kf7P http…
23mreplyretweetfavorite
JimWhiteGNV RT @Laurie_Garrett: After all the huffing puffing re NJ exceeding @CDCgov quarantine guides for #Ebola the nurse in Newark who worked in WA…
32mreplyretweetfavorite
JimWhiteGNV DNA Sequence Analysis Shows Ebola Outbreak Naturally Ocurring, Not Engineered Virus https://t.co/IQaTuYlujy
48mreplyretweetfavorite
emptywheel Why would any intruder try to invade the White House now? Don't they know Obama hugged an Ebola survivor?
2hreplyretweetfavorite
emptywheel RT @EamonJavers: Pool report says WH was on lockdown this morning, due to an "emergency," but Secret Service not saying what it was. Lockdo…
2hreplyretweetfavorite
emptywheel @puellavulnerata Also, "reality based." But that's an increasingly demonized trait these days.
2hreplyretweetfavorite
emptywheel @bmaz Don't think even Tom Brady could help the Wolvereenies today.
2hreplyretweetfavorite
emptywheel @dandrezner Are you trying to avoid taxes, too, like Chiquita?
2hreplyretweetfavorite
August 2012
S M T W T F S
« Jul   Sep »
 1234
567891011
12131415161718
19202122232425
262728293031