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Tuesday, August 7, 2012

Standard Chartered Shares Plunge Over 21%

Shares in the London-listed Standard Chartered bank plunged more than 21% as markets opened, in the wake of US regulators claiming it was a "rogue institution".

The price drop comes on top of a 6% fall just before markets closed on Monday, after officials in New York state released a report about the bank's alleged activities on behalf of so-called Iranian entities.

The New York state department of financial services (DFS) has threatened to strip Standard Chartered of its right to operate in the state, saying the British bank hid $250bn (£160bn) in transactions tied to Iran, in violation of US law.

The DFS said the bank's "flagrantly deceptive actions" had left the US "vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes".

The bank has strenuously denied the allegations, which include claims of stripping out identifying details of transactions concerning Iran.

"The group strongly rejects the position or the portrayal of facts as set out in the order issued by the DFS," Standard Chartered said in a statement, adding that it does "not believe the order issued by the DFS presents a full and accurate picture of the facts." Read More