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08-08-2012, 02:39 AM #1
StanChart shares slump amid Iran allegationsMore than £11.5 billion has been wiped from the stock market value of Standard Chartered bank since U.S. allegations that the bank had illegally moved $250 billion of Iranian money around the financial system.
The share price fall on Tuesday puts the top management of the bank — described by the U.S. authorities as a “rogue institution” — under intense pressure even though they have denied the allegations made by the U.S.
By mid-day Tuesday in London, the shares had lost 4.81 pound of their value — some 11.5 billion pound in total — since the shock announcement which caused the sudden 6 per cent fall in the shares on Monday and a further 24 per cent fall on Tuesday.
The stunning drop comes after the surprise announcement, just as the London market was closing on Monday, by the New York state department of financial services that Standard Chartered’s actions had left the U.S. “vulnerable to terrorists, weapon dealers, drug kings and corrupt regimes.”
Even though the highly regarded London-based bank denied the accusations, investors took fright following a spate of banking scandals that have unseated management at rival banks and amid fears Standard Chartered could lose its banking license in the U.S....being a human...