Shares of British bank Standard Chartered (STAN) are down 9% after a U.S. Republican lawmaker wrote to Attorney General Pam Bondi asking for action to be taken against the bank for alleged “sanctions evasion.”
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Elise Stefanik, a New York Republican, wrote in a letter posted to social media that a special attorney should be appointed to look into Standard Chartered’s alleged failings. The London-based bank has been investigated over sanctions in the past.
Standard Chartered was fined $1.1 billion in 2019 by U.S. and U.K. authorities for evading sanctions and lacking proper money-laundering controls. The lender is currently facing a $1.9 billion lawsuit in the United Kingdom by investors over Iran sanctions violations.
Bank’s Response
Standard Chartered was quick to respond to the allegations made by Representative Stefanik. In a statement, the bank said that “the underlying allegations — including the claim that there are $9.6 billion in unlawful transactions — are entirely false and have been rejected by the U.S. courts multiple times.”
Standard Chartered added that it will “fully cooperate” with any relevant authority. Stefanik also alleged that the New York Attorney General’s Office, which helps oversee most foreign banks operating in the U.S., did not take action on allegations against Standard Chartered in the past. Stefanik is requesting that the acting U.S. Attorney for New Jersey be in charge of a new probe into the British bank.
Is STAN Stock a Buy?
The stock of Standard Chartered has a consensus Moderate Buy rating among nine Wall Street analysts. That rating is based on three Buy and six Hold recommendations issued in the last three months. The average STAN price target of 1,356.22p implies 3.89% upside from current levels.
