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Standard Chartered Share Price Bounces Back

(c) Sky News 2012

Standard Chartered (Xetra: 859123 - news) bank shares have been boosted by around 8%, after its price plunged on Tuesday following US regulator allegations of Iranian money laundering.

The rise to more than £13.36 follows a share price plummet of 16.43% on Tuesday, which saw £8.2bn wiped off the bank's value.

It was the steepest fall in one day for more than two decades and brought shares down to a three-year low of £10.92.

It comes as it emerged the US Treasury and Federal Reserve are angry with New York (Frankfurt: A0DKRK - news) 's banking regulator for going public with an attack on London-listed Standard Chartered.

The New York state department of financial services (DFS) accused the British bank of violating US law by laundering $250bn (£160bn) in transactions tied to Iranian entities.

DFS head Benjamin Lawsky said Standard Chartered's dealings exposed the US banking system to terrorists, drug traffickers and corrupt states.

Commenting from a news conference in London, Bank of England governor Sir Mervyn King criticised the DFS for its handling of the case.

He said: "I think all that the UK authorities would ask is that various regulatory bodies that are investigating a particular case try to work together and refrain from making too many public statements until the investigation is completed."

Standard Chartered's chief executive Peter Sands rejected claims made by the US officials in a conference call to journalists.

He said "I don't think there is anything wrong with the culture at the bank," and added the allegation against it "clearly has been very damaging".

"We are going to have to work hard to restore some of the damage," he said.

Meanwhile, some UK politicians have claimed the assault on the bank is part of an "anti-British bias" as US authorities plot to undermine London's financial sector.

Labour MP John Mann said: "I think it's a concerted effort that's been organised at the top of the US government.

"This is Washington trying to win a commercial battle to have trading from London shifted to New York."

Referring to recent scandals with Libor rate-fixing at Barclays (LSE: BARC.L - news) and claims of money laundering for Mexican drug traffickers at HSBC (LSE: HSBA.L - news) , Mr Mann said there is "disproportionate publicity that's given to British banking problems as opposed to American banking problems".

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