Tuesday, August 7, 2012

StanChart market value takes a $12.5-bn hit on US order

Standard Chartered Bank today lost over 8 billion pounds ($12.5 billion) of market value today in the UK, along with a loss of Rs 500 crore on Indian bourses, as its shares plunged up to 24 per cent in London Stock Exchange, after a hard- hitting order against the bank in the US.
The New York state has threatened to revoke the bank’s licence after charging the UK—based global banking giant of operating as a “rogue institution” and hiding over 60,000 transactions worth $250 billion with Iran.
While the bank has refuted the charges saying that more than 99.9 per cent of its Iran-related transactions complied with the US regulations, the New York State Department of Financial Services (DFS) has charged StanChart of exposing the US financial systems to terrorists, drug kingpins and weapon dealers through its transactions with Iran for about 10 years.

The stock plummeted after the New York state in the US, last night, threatened to revoke its licence and charged it of $250 billion worth secret transactions with Iran.
Reacting to the development, Standard Chartered scrip at the Bombay Stock Exchange fell 19.97 per cent to hit its lowest permissible limit for the day at Rs 83.15. On the NSE, the scrip was down 19.97 per cent at Rs 82.95.
In the process, the bank’s market capitalisation on the Indian bourses fell by about Rs 500 crore to Rs 1,995 crore.

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