LONDON: Shares in Standard Chartered have dropped sharply as investors reacted to U.S. charges that the bank was involved in laundering money for Iran.
Shares were down 13.6 percent at 1,270 pence in early trading Tuesday on the London Stock Exchange. In Hong Kong, they were down 7.8 percent with an hour to go in the session.
New York State Department of Financial Services alleged on Monday that Standard Chartered schemed with the Iranian government to launder $250 billion from 2001 to 2007, leaving the United States' financial system "vulnerable to terrorists."
Standard Chartered said it "strongly rejects" the allegations. The statement said "well over 99.9 percent" of the questioned transactions with Iran complied with all regulations, and the exceptions amounted to $14 million.