Iran accusations wipe $16 b off StanChart shares

Wednesday, 8 August 2012 01:15 - - {{hitsCtrl.values.hits}}

Reuters: The market value of Standard Chartered Plc (STAN.L) tumbled $16 billion on Tuesday after New York’s bank regulator threatened to tear up its state banking licence for allegedly hiding $250 billion in transactions tied to Iran.

The New York State Department of Financial Services (DFS) slammed Standard Chartered as a “rogue institution” that “schemed” with the Iranian government, which is subject to U.S. sanctions over its nuclear program, and hid 60,000 secret transactions to generate hundreds of millions of dollars in fees over nearly 10 years.

Shares in the Asia-focused bank were down 23.5 percent at 11.25 pounds by 1120 GMT, their lowest in three years, taking their losses to 30 percent since the news surfaced just before Monday’s close.