Standard Chartered accused of hiding $250bn worth of Iranian transactions

<p>The global banking scandal engulfed Standard Chartered Bank on Monday after the New York State regulator accused the global bank of scheming with Iran to […]</p>

The global banking scandal engulfed Standard Chartered Bank on Monday after the New York State regulator accused the global bank of scheming with Iran to conduct and hide $250bn worth of transactions, reaping millions of dollars worth of fees in the process.

In an enforcement filing made by the NY State Regulator, it accused Deloitte & Touche of allegedly intentionally omitting details to help aid the bank in its deception and threatened to revoke the banks license unless Standard Chartered can explain its findings.

The allegations made by the NY State Regulator leave a dark cloud of uncertainty over the bank, in a similar fashion to that of which the Libor and money laundering scandals made on Barclays and HSBC respectively.

This is yet another PR disaster for the global banking community after the Libor and money laundering scandals. It poses an imminent threat to the branding of Standard Chartered, typically seen a bank with one of the highest reputations, and its ability to conduct business in the heart of the US financial district, New York.

With the news breaking very late, Standard Chartered banks shares closed down by 6% thanks to volumes in the closing auction. The banks shares are likely to see volatility tomorrow when the shares reopen for trading and investors gauge the likely details and effects of this allegation.

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