Standard Chartered Bank plc: Violating Banking Sanctions for Profit

Author :

Dr Viola Makin and Chijioke Oji

Pages :

12

Product Type :

Case

Reference # :

WBS-2013-7

Teaching Note :

not available

Institute:

Wits Business School, University of the Witwatersrand

Setting:

USA

Year:

2013

Keywords:

Finance, Banking, Ethics

Summary/Abstract:

On 6 August 2012, Benjamin Lawsky, superintendent of the New York State Department of Financial Services (DFS), announced findings from an investigation of Standard Chartered Bank New York (SCBNY). The DFS claimed that over nine years, SCBNY had hidden 60 000 transactions totalling US$250 billion for Iranian banks on which the United States (US) government had imposed sanctions. The announcement resulted in a loss of £4.81 per share from Standard Chartered Bank’s (SCB) stock, erasing £11.5 billion from the bank’s market value. SCBNY accounted for 15% of SCB’s revenue, and faced the possibili