Standard Chartered shares slumped in both Hong Kong and London on Tuesday after New York’s top bank regulator said the British bank worked with Iran to hide $250 billion in transactions, violating U.S. anti-money laundering laws , but analysts say that the case will only have limited impact on the bank.
The New York State Department of Financial Services on Monday threatened to strip Standard Chartered of its banking license in the state. It said the bank was a "rogue institution" that had "schemed" with the Iranian government and hid 60,000 secret transactions that generated hundreds of millions of dollars in fees.
The stock had slumped more than 6 percent in London on Monday after news broke on the accusations. It fell a further 17 percent in early morning trade on Tuesday. Meanwhile, the stock in Hong Kong closed 14.8 percent lower.
While the case could “haunt the company” for some time, the impact on its stock will be “limited,” according to Kathy Lien, Managing Director of BK Asset Management.Page 1 of 4 | Next Page