Reuters reports that Standard Chartered, which has cherished its image as one of the cleanest names in global finance, lost more than a quarter of its market value in 24 hours after New York's banking regulator accused it on Monday of assisting $250bn of money-laundering transactions over nearly 10 years.
Despite the bank's protests that just $14m of deals flouted the U.S. rules, its shares are still around 15% below levels before the New York State Department of Financial Services (DFS) branded it a 'rogue institution'.
'Even if it is only $14m, they have still committed a crime, and they are still guilty', one of the 10 biggest institutional investors in the bank told Reuters, explaining why the shares remained depressed.
'And if this is hot air and they are just bluffing, then they are playing a very dangerous game', the investor said, putting the risk of either CEO Peter Sands or CFO Richard Meddings quitting the bank at 5-8% and rising'.
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