Standard Chartered faces devastating blow on $250 billion U.S.

Standard Chartered 

TOP NEWS

Standard Chartered faces devastating blow on $250 billion U.S.

(Reuters) CCLA Investment's James Bevan says the scandal surrounding $250 billion in alleged hidden transactions with Iran is potentially devastating for Standard Chartered

Standard shots are thought to be the poster child of clean bunting -- not accused of being a role institution. It's claimed the byte hit more than 250 billion dollars of transactions type to run in breach of US law. Let's hear tonight from James -- he's chief investment also not CC LA investment management from the London Stock Exchange. James is this posturing and -- standing half from the US authorities all. It's -- sad. Moment money laundering from us on the topped of on a massive scale. Is extremely vehicles Rijndael state in the Kmart from the new local party last night. Was very aggressive -- web page and indeed it slight case. Internal sources kinda -- and yet be validation of the Fed that this was reputation and potentially. Devastate thing actually attending other than deeply care as a snapshot of how -- respond to this morning and said that this. Completely at the state position they believe -- instead of 250 billion dollars is a by. Fourteen million dollars that was I -- I don't committed activities. -- -- something about discrepancy to say the least time. Noticed on the top -- could loses you -- state license how big a deal would that be very very substantial. The real challenges of course what what other regulators would step -- to the frank and say when actually you who broke the rules -- of global rules on. Money laundering. I think I -- and I think the -- view is that there is far more likely to be a fine was very candid Q fighting the fight is far oftentimes of determining the scale of the challenge. That we have a law -- again it is unlikely we will see any real clarity until fifteen bogus when Sam Johnson meets with the New York apartheid. Could stunned that shot so if indeed any bank live without a US find him lessons Alter ego on it's not just unthinkable. What is very difficult because the US banking license the neo. Obviously covers Wall Street come as the US dollar funding which is a key part of the global banking framework. Will -- the chops on recover from this and a soul one I think there are two separate issues as there is more -- -- -- again doing the bank. And that results last week were extremely impressive but I mean it makes people we cannot believe the management statement was confident forward looking and optimistic and that. Gave considerable shift the optimists. The times on the other hand relations the share -- is it's very difficult C early recovery. Not least because suns started sharp price was valuing the company on a -- one and a half times book value as against fake. Half times book value for the UK terrorists such as Bob -- apple valuation has sent shelves and walls rich and I think that's what's gonna come under tension. In the days has. But just how about shot of the ship price James has done around 20% so far today. From what is saying they don't I would doubt about -- its -- -- fall still before you think you and you would buy it. When -- day when one looks at the volume today there are a lot of people actually physically settings is not broken simply. Walking down the price to say dissuade people from participating feel real orders paying for the market. Okay Jason thank you very much Mike -- -- had to James Bevan of CC LA investment management. There's more on want to dot com on the inside the platform and join us throughout the week -- Reuters today a snapshot of -- us world news and market had -- I'm Jamie gave up. This -- Reuters.http://www.reuters.com/video/2012/08/07/stanchart-faces-devastating-blow-on?videoChannel=1&videoId=236893481

Get Adobe Flash player