Standard Chartered Thought Likely To Get Off With Fine / Slap On The Wrist

Standard Chartered shares slumped more than 7% in early morning trade in Hong Kong on Tuesday after New York’s top bank regulator said the British bank worked with Iran to hide $250bn in transactions, violating U.S. anti-money laundering laws, but analysts say that the case will only have limited impact on the bank.

CNBC reports that the New York State Department of Financial Services on Monday threatened to strip Standard Chartered of its banking license in the state. It said the bank was a 'rogue institution' that had 'schemed' with the Iranian government and hid 60,000 secret transactions that generated hundreds of millions of dollars in fees.

The stock slumped more than 6% in London on Monday after news broke on the accusations.

While the case could 'haunt the company' for some time, the impact on its stock will be 'limited', according to Kathy Lien, Managing Director of BK Asset Management.

'Yes, it creates a really big black mark on their name but at the end of the day, what’s probably going to happen is they’re going to get slapped on their wrist, they’re going to be fined, they’re going to get greater scrutiny as a result of this. But at the end of the day, Standard Chartered is going to survive this', Lien told CNBC Asia’s 'Squawk Box'.

Hit the link below to access the complete CNBC article:

StanChart’s Iran Case Will ‘Haunt,’ but Not Hurt Company

Knight Is Still Trying to Find Out What Went Wrong: CEO

'Knight-mare': Trading Glitches May Just Get Worse