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'.
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