Shares in Standard Chartered edged higher today as investors let out a sigh of relief that last night’s settlement with the New York financial regulator, including a $300 million penalty, was not worse than feared.
The emerging markets bank, based in London, has accepted the presence of an independent monitor overlooking its anti-money laundering systems for another two years.
It has also accepted restrictions on several parts of its business, including new current accounts in New York.
Ian Gordon, banking analyst at Investec, said: “The scale of this financial penalty appears very high in relation to its alleged failings. On top of the financial penalty, so-called ‘remedial measures’ appear slightly more intrusive than anticipated.”
James Chappell of Berenberg said that the settlement was “likely to raise pressure on incumbent management to deliver on new strategy and delays any potential re-rating until the market is comfortable no further litigation risks exist.”
Standard Chartered has been under pressure to identify a successor to its chief executive Peter Sands who has presided over fines and profit warnings in recent years.
The shares gained 6p to 1223.5p.
