NY State Regulators Settle With Standard Chartered At 0.14% Transaction Fee

Tyler Durden's picture


Consider our minds blown, via Bloomberg:


The life or death of STANCHART is settled - they live; and the $250 billion of 'laundering' transactions - sanctions/terrorism/drugs-related or not - are settled for a 0.14% transaction fee (that'll teach 'em!). In other words, Std Chartered's IRR for committing years of crime is 714%. Finally this is a whopping 1.9% of the bank's entire 2011 revenues, or in other words they had to hand over 7 days of revenue (assuming a 365 day work week). Of course there are other fines/penalties to come but it looks like someone got a little over-excited at the regulators or as we note, STANCHART had some bottom-drawer details no one wanted outed. And now, employees of US "regulators," "enforcers" and various other "crime fighting" organizations can look forward to submitting their resumes to the British banks all over again.

From AP:

New York's financial regulator says his agency has reached a $340 million settlement with Standard Chartered Bank over allegations it schemed with the Iranian government to launder $250 billion from 2001 to 2007.


New York Superintendent of Financial Services Benjamin Lawsky says the British bank will pay the civil penalty to the state. It also will install a monitor for at least two years who will evaluate the money-laundering risk controls of its New York branch and take corrective measures. State agency's examiners will be placed at the bank.


The bank had no immediate comment Tuesday.


In a statement released Monday night, Standard Chartered Bank said it "strongly rejects" and "contests" the New York regulators' portrayal of its transactions with Iranian banks.

But it is delighted at generating aa 714% IRR for year of what it neither admits nor denies may have been egregious criminal activity.

And so all is back to normal in the world of endless financial crime, where crime pays, but only after one bribes all the regulators to play.

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Tue, 08/14/2012 - 13:58 | 2704398 Winston Churchill
Winston Churchill's picture

Damn,there goes the Chairmans beer money.

Tue, 08/14/2012 - 14:06 | 2704426 MarketTruth
MarketTruth's picture

Forget beer money.... We need to open a bank!

Give a man a gun and he can rob a bank.
Give the man a bank and he can rob the world.

Tue, 08/14/2012 - 14:09 | 2704433 Michael
Michael's picture

Top story on Drudge;

National Weather Service Follows DHS In Huge Ammo Purchase

Why would the National Weather Service need to purchase large quantities of powerful ammo? That’s the question many are asking after the federal agency followed in the footsteps of the Department of Homeland Security in putting out a solicitation for 46,000 rounds of hollow point bullets.

The NWS is following its federal counterpart the DHS in securing large quantities of ammo. Back in March,Homeland Security purchased 450 million rounds of .40-caliber hollow point bullets that are designed to expand upon entry and cause maximum organ damage, prompting questions as to why the DHS needed such a large amount of powerful bullets merely for training purposes.

As the Business Insider notes, hollow point bullets have been “illegal in international warfare since 1899.”

The DHS is also planning to purchase a further 750 million rounds of different types of ammo in a separate solicitation that also expires on August 20, including 357 mag rounds that are able to penetrate walls.


Tue, 08/14/2012 - 14:13 | 2704453 CrockettAlmanac.com
CrockettAlmanac.com's picture

Don't know why the goon squad shot me in the eye, stormy weather...

Tue, 08/14/2012 - 14:15 | 2704462 A L I E N
A L I E N's picture

Justice has been swerved!

Tue, 08/14/2012 - 15:43 | 2704822 johnQpublic
johnQpublic's picture

what do you call a man who blows up a bank with high power explosives?



A: crimestopper

Tue, 08/14/2012 - 16:42 | 2704982 Precious
Precious's picture

What.  Nobody gets a pinky cut off?

Tue, 08/14/2012 - 14:16 | 2704471 PiratePawpaw
PiratePawpaw's picture

It is common knowledge that you can alter the direction of a tornado by firing small caliber ammunition at it. The question is can NWS employees hit a tornado with only 46,000 shots.

Tue, 08/14/2012 - 14:47 | 2704590 Dr. Richard Head
Dr. Richard Head's picture

Based upon my sightings of different government employees, I would say no.  Unless, of course nature put kiddie porn on that twister.  If that was the case, every department of the Feds would be all over it. 

Tue, 08/14/2012 - 17:39 | 2705089 Precious
Precious's picture

You just don't know WHAT fucking direction.

Wed, 08/15/2012 - 00:48 | 2705934 tooktheredpill
tooktheredpill's picture

we just don't know the details - ie how much of the transactions were in violation etc etc etc. But maybe this was the explanation as to how they did so well during the credit crunch

Tue, 08/14/2012 - 14:22 | 2704495 jayman21
jayman21's picture

What does this story have to do with the one above?

Tue, 08/14/2012 - 14:30 | 2704516 Michael
Michael's picture

This is the top financial site on the internet with many eyes on it asshole.

We also discuss geo-political issues involved with financial capture of the entire planet by the globalist NWO elitist scum and their activities.

We are engaged in demoralizing the cunts and cocksuckers of the NWO/MSM whenever we can and will never stop. Get over it.


Tue, 08/14/2012 - 14:48 | 2704594 alarm bell
alarm bell's picture

bravo! good man

Tue, 08/14/2012 - 14:32 | 2704520 CrockettAlmanac.com
CrockettAlmanac.com's picture

Bankers are subject to virtually no punishment whatsoever for their crimes while the rest of us have to live in fear of being gunned down by government meteorologists. I'm not a global warming denier, nosiree!

Tue, 08/14/2012 - 14:42 | 2704554 A Lunatic
A Lunatic's picture

Perhaps the plan is to begin shooting up small towns and blaming the aftermath on tornadoes...............

Tue, 08/14/2012 - 15:04 | 2704665 RunningMan
RunningMan's picture

Or worse, do we need to autopsy all those who die in natural disasters to see how they were killed? 


Tue, 08/14/2012 - 14:47 | 2704592 jayman21
jayman21's picture

Funny shit

Tue, 08/14/2012 - 16:10 | 2704907 gunsmoke011
gunsmoke011's picture

Well Said -- AMAZING. If it weren't so pathetic it would be funny - every weatherman needs to know how to handle a weapon. Unreal the sheeple can't see what is coming with news like this. I do however think "They" are going to be in for one BIG Surprise - this is NOT Syria - and I do not see 19 - 20 year old Marines rolling through towns shooting civilians.

The fucktards in power will find that American Armed Forces will not defend the indefensable.

Tue, 08/14/2012 - 15:04 | 2704668 Disenchanted
Disenchanted's picture




EPA seeking .357 Sigs:



Secret Service wants 40,000 rounds of .300 WIN Mag Ammo:



Capitol Police want 600,000 rounds 165 grain S&W .40 Hollowpoints:



Get your gats and ammo bitchez...

Tue, 08/14/2012 - 18:01 | 2705120 Umh
Umh's picture

Trying to start a tempest?

Tue, 08/14/2012 - 18:11 | 2705136 Henry Hub
Henry Hub's picture

The different effect on a human being between a .40 caliber round nose and a hollow point bullet -


Sat, 08/18/2012 - 06:38 | 2716275 snafuy
snafuy's picture

Doofus. Law enforcement officers (including the ones in NOAA's Fisheries department) are required to redo their firearms training every year, which takes over 500 rounds per agent.

Reported at Fox News, Snopes, and many other sources.

Now how about we talk about the ACTUAL news of a multinational bank getting to keep 99% of its illegal profits while helping an avowed enemy nation?

Tue, 08/14/2012 - 14:13 | 2704450 The Wizard of Oz
The Wizard of Oz's picture

This was nothing more than extortion. No punitive measure. Simple extortion.

Tue, 08/14/2012 - 14:18 | 2704478 kennard
kennard's picture

Right. The State didn't have a case. SC settled for a nominal amount just to feed the beast. And yes, it was just extortion. SC had the temerity to be untouched by the credit crisis and its follow on, so they had to slime them with something, just to take the heat off the real criminals.

Tue, 08/14/2012 - 14:35 | 2704528 defencev
defencev's picture

Totally agree. People just get carried away with Marxist propaganda emanating from certain government circles with the key word "banksters". SC is one of the best banks in the world (and I park some money with them) whereas real criminals can be found in some government quarters.

Tue, 08/14/2012 - 14:38 | 2704538 bankruptcylawyer
bankruptcylawyer's picture

you know, i wish there were a way to make money off of a business that 'outs' paid posters that smear comment boards with nonsense on behalf of their paymasters.

Tue, 08/14/2012 - 14:38 | 2704537 Mactheknife
Mactheknife's picture

Of course if you are a SC customer....YOU are the one that just got fined and if YOU had pulled this crap YOU would be in JAIL.

Tue, 08/14/2012 - 18:11 | 2705134 defencev
defencev's picture

 Yes, I am SC customer and at least I have money to park (unlike you). You, motherfuckers need to understand one simple thing:

not all bankers are banksters and not all banks are bad. If you think otherwise, you are fucking brainwashed idiot who does not understand the real world. Moreover, such an extreme attitude typically characteristic for losers who just cannot adjust to reality

or do not have any skills to live in real world with dignity.

Tue, 08/14/2012 - 15:27 | 2704761 Nage42
Nage42's picture

Well, the info I have [source unnamed] was that all transactions to sanctioned countries were terminated 2007, and an internal and totally volentary audit of the more than 150 million payment transactions yielded less than 280 transactions that could not be explicitly explained by not-related or agreed-exemption.  The value of those ~280 payments was below 20 million USD in value (read: peanuts... really, really peanuts).  So, SCB was in talks with the federal regulators on forensically tracking them down and determining if they were in breach, with full expectations to appropriately resolve those breaches -- there's some value to the regulator also, in that tracking down those payments helps them in AML investigations for other institutions.

Well, you don't have to take my word for it... hell, it's not even my word, but from my expereience on how these things typically run, this is well within a typical profile of what normally happens.  SCB is pretty regulations strict, nothing like UBS/HSBC, and don't even get me started about Shiti...

Here in Singapore, the reputational is pretty significant... anything Chinese-business based is all about "face," and even being mentioned is phenominally bad for business.  I'm betting that US regulators are pretty motivated to scuttle any banks that actually deserve trust so that people will put their money into US-based banks for the full-on FATCA and all that this will entail.  So, if I were a betting man... and I'm not... my guess would be that SCB pays the fine, then goes after the NY regulator for defamation and if the math holds, $14M exposure yields $340M fine, then $340M unjust fine with reputational damage should yield $8.26B.  As usually, it's only the Lawyers who will make out like bandits.


Tue, 08/14/2012 - 21:03 | 2705524 Apostate2
Apostate2's picture


' I'm betting that US regulators are pretty motivated to scuttle any banks that actually deserve trust so that people will put their money into US-based banks for the full-on FATCA and all that this will entail.'

That would be my guess also. 

Tue, 08/14/2012 - 14:16 | 2704470 vast-dom
vast-dom's picture

wooohaaaa! that's the cocaine tab for one month! nice job! i think drug running with the help of the CIA and the banks is the next career move!

Tue, 08/14/2012 - 14:07 | 2704428 SeverinSlade
SeverinSlade's picture

Banksters are going to have budget for a few days and only hire one prostitute.

Tue, 08/14/2012 - 18:04 | 2705123 Umh
Umh's picture

Wet one!

Tue, 08/14/2012 - 14:35 | 2704529 Tijuana Donkey Show
Tijuana Donkey Show's picture

The best way to rob a bank is to own it.....

Tue, 08/14/2012 - 15:08 | 2704687 AAA21
AAA21's picture

Durden - get  your story straight! First you note that "SCB got HSBC'ed" by out of control regulators, now you are whining about the "tiny" fine they received!

Tue, 08/14/2012 - 13:59 | 2704401 goldencross10
goldencross10's picture

US and state regulators are professional wrist slappers 

Tue, 08/14/2012 - 14:17 | 2704479 Fidel Sarcastro
Fidel Sarcastro's picture

Professional wrist slappers of the banks.  If YOU break the law, YOU are going down son! Banksters?  No way - that's as clear as glass.

Tue, 08/14/2012 - 14:17 | 2704480 CrockettAlmanac.com
CrockettAlmanac.com's picture

At this point shouldn't we be storming the Bastille? Where's the sense of proportion in modern crime and punishment.

Tue, 08/14/2012 - 14:42 | 2704553 resurger
resurger's picture

I was in a dinner with Thomson Reuters, in my table I sat next to grand pa, his name was "Brian" when I asked him about his profession he told me that he's a regulator for an off shore banks. And he was regulating the case for Standard Chartered and how busy he was with it.

I told him, how ironic that you are regulating a country instead os regulating home...

Tue, 08/14/2012 - 14:44 | 2704572 A Lunatic
A Lunatic's picture

..........the suspense is killing me.

Tue, 08/14/2012 - 16:58 | 2705012 ajax
ajax's picture


You'll die of suspense because there's no more to that story: he was "in a dinner" and thus doesn't exist any longer. I'm just wondering what he was on the menu... a starter or a main course?


Tue, 08/14/2012 - 14:01 | 2704407 Cognitive Dissonance
Cognitive Dissonance's picture

"STANCHART had some bottom-drawer details no one wanted outed."

Step right up and get your dirty laundry. Plenty for everyone, no need to push and shove. Come and get it.

Tue, 08/14/2012 - 14:15 | 2704460 saturn
saturn's picture

And now that you agreed to share your profit with us, we grant you exemption to commit crime as frequently as possible.

Tue, 08/14/2012 - 14:36 | 2704532 disabledvet
disabledvet's picture

"Next stop...KNIGHT TRADING TAX!" no? Yes? Who the puck are you kidding?

Tue, 08/14/2012 - 14:01 | 2704409 WTF2
WTF2's picture

Who was that masked man?

Tue, 08/14/2012 - 14:06 | 2704410 SeverinSlade
SeverinSlade's picture

With each passing day, everyone that follows ZH feels more and more like Mugatu.

Tue, 08/14/2012 - 14:02 | 2704412 NoelConfidence
NoelConfidence's picture

Naughty naughty, don't do it again!

Tue, 08/14/2012 - 14:02 | 2704413 PaperBear
PaperBear's picture

I suppose someone who was the victim or a relative of a victim of Hezbollah terrorists can sue SC for facilitate the financing for their criminal operations.

Tue, 08/14/2012 - 14:04 | 2704414 jayman21
jayman21's picture

Looks like deflation to me.  Only .14%.....even the bribe business is going through deflation.  Sorry Mish, using price in this case even though I like your definition of deflation much better.  Maybe I could try pricing it off the LIBOR curve and back into some credit increase or decrease with the help of a Harvard study that won a Nobel prize.

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