Exclusive - U.S. regulators irate at New York action against Standard Chartered

[dipsydoodle]

Source: Reuters

(Reuters) - The U.S. Treasury Department and Federal Reserve were blindsided and angered by New York's banking regulator's decision to launch an explosive attack on Standard Chartered Plc over $250 billion (160.1 billion pounds) in alleged money laundering transactions tied to Iran, sources familiar with the situation said.

By going it alone through the order he issued on Monday, Benjamin Lawsky, head of the recently created New York State Department of Financial Services, also complicates talks between the Treasury and London-based Standard Chartered to settle claims over the transactions, several of the sources said.

Lawsky's stunning move, which included releasing embarrassing communications and details of the bank's alleged defiance of U.S. sanctions against Iran, is rewriting the playbook on how foreign banks settle cases involving the processing of shadowy funds tied to sanctioned countries. In the past, such cases have usually been settled through negotiation - with public shaming kept to a minimum.

In his order, Lawsky said Standard Chartered's dealings exposed the U.S. banking system to terrorists, drug traffickers and corrupt states.

Read more: http://uk.reuters.com/article/2012/08/08/uk-standardchartered-iran-idUKBRE8750VR20120808

[neohippie]

1. U.S. regulators are too cozy with the banks

The U.S. regulatory agencies have proven to be too cozy with the banks and traders that they regulate. We are tired of hushed backroom deals where these criminals are fined pennies to the dollar and slapped on the wrist, while the details of their illegal activities and fraudulent schemes are often kept out of the press. It's time for a revolution, in banking and at Wall Street, where we need a new sheriff in town because the old one can't seem to get the job done

[dipsydoodle]

3. I wondered who'd be first

to say you don't trust your own administration.

[xchrom]

2. Du rec. Nt

[Ilsa]

4. This goes to two issues: our national security and

our relationship with the London financial sector, which feels a little picked on with this and the LIBOR-fixing charges.

[formercia]

5. This is a great example of the 'Old Boy Network'

Kudos to NY to have the stones to stand up to it.

These elitist bankers from the ruling families need to go to jail.

Just another example of why laws only apply to little people.

[Citizen Worker]

6. The rule of law is nothing more than a farce. Unless, of course, you're working class, then it is

applied with great vigor.

[byeya]

7. Laws are written to make the unethical and immoral legal for the rich

and are used to slam the wage earners and out-of-works to keep them in line.

[Angry Dragon]

8. Personnal fines, jail them all

That is the only way this will stop

[The Magistrate]

9. Good For Mr. Lawsky, Sir: Sunshine Disinfects....

And confiscatory fines and jail deter.

[lindysalsagal]

10. Can someone translate this into 3rd grade english?

Was a law broken?

[Prometheus Bound]

11. That is not clear yet. Here is the problem.

Those dumb Brits forgot to pay off the politicians. The American banks aren't so dumb.

http://www.zerohedge.com/news/confused-why-so-many-foreign-banks-are-suddenly-being-charged-us-heres-why

[dipsydoodle]

12. At issue

is apparently nothing like the figure being bandied about by NY. The figure which may have broken US sanctions is < $ 15 million. Any decisions on the subject are likely to made jointly by the financial authorities both sides of the Atlantic. The investigation appears to have going on for some years.