STANDARD Chartered’s chief executive Peter Sands last night flew to New York to bolster his team, which is working to quickly settle accusations that the bank broke US financial sanctions against Iran.
The bank says it has identified $14m (£8.9m) of trades in breach of the rules, while the authorities claim the figure is in the region of $250bn.
Regulators from the New York State Department of Financial Services (DFS) summoned the bank to a hearing tomorrow, but the set up has not yet been decided – it may be a closed meeting of lawyers, or a public hearing including top bank bosses.
In the hearing the bank is expected to have to defend its right to a banking licence in the state, while analysts have warned it could face a fine of up to $1bn.
At the start of this month Standard Chartered reported strong second quarter results, with profits rising nine per cent on healthy emerging markets growth, bucking the industry-wide downward trend.
But the Iran claims from New York regulators last week have knocked over 14 per cent off the bank’s shares.