Standard Chartered 'in settlement discussions' with NY regulator

Embattled bank Standard Chartered is in talks with New York state regulators over how much a settlement would cost it as the storm over alleged hidden transactions on behalf of Iran continues.

Last week the British bank was accused by American authorities of illegally processing $250bn (£160bn) of payments for Iran.

Standard Chartered maintains the total amount that didn't comply with US sanctions laws was just a fraction of that at $14m.

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Media reports of settlement discussions, which cite unnamed sources, come as the bank's executives prepare for a hearing with the New York State Department of Financial Services on Wednesday.

There they will have to face Benjamin Lawsky, the head of the regulator, who has ordered the management to explain why the bank shouldn't lose its license.

According to the Reuters news agency, the settlement talks could still collapse, and the hearing also could be postponed to allow more time for negotiations.

Peter Sands, Standard Chartered's chief executive, has furiously denied the claims, insisting that almost all the payments were legal.

A broad range of politicians and City figures have accused Lawsky of trying to damage London's reputation as a financial centre and win business for America.

The latest allegations follow hefty fines being levied against Barclays and HSBC by US regulators, for interest rate fixing and facilitating money laundering, respectively.

Standard Chartered is already in discussion with the US Justice Department over a separate matter concerning violation of sanctions laws.

The bank's shares plunged after the New York regulator made the claims before recovering considerably.

However, they are still over 8% down since the allegations were made.