Standard Chartered Surrenders

A New York regulator settled a money laundering probe of Standard Chartered for $340 million a day before the U.K.-based bank was to appear at a hearing to defend its right to continue operating in the state.

Bloomberg reports that as part of the agreement, the bank agreed to install an on-site monitor for at least two years who will report directly to state officials. New York regulators will also place examiners at the bank. As a result of the accord, announced Tuesday by the state in an e-mailed release, the hearing that had been scheduled for tomorrow has been adjourned.

On August 6th, Benjamin Lawsky, head of the New York Department of Financial Services, or DFS, issued an order accusing Standard Chartered of helping Iran launder about $250bn in violation of federal laws. One analyst estimated loss of the bank’s New York license could result in a 40% drop in earnings.

'The New York State Department of Financial Services and Standard Chartered Bank have reached an agreement to settle the matters raised in the DFS Order dated Aug. 6, 2012', Lawsky said in the statement. 'The parties have agreed that the conduct at issue involved transactions of at least $250bn'.

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N.Y. Settles Standard Chartered Probe For $340 Million

Reuters reports that the announcement came after Standard Chartered's Chief Executive Peter Sands, who strongly denied the allegations last week, flew to New York to take personal control of the bank's attempts to reach a settlement.