It has not been a good day for holders of Standard Chartered stock. Since yesterday's revelation that Standard Chartered was being accused of violating US anti-money laundering laws and the New York State Department's claims that senior Standard Chartered staff said such things as - “You f---ing Americans. Who are you to tell us, the rest of the world, that we’re not going to deal with Iranians” - its stock has fallen 26%, and counting.
It's been an ignominious end to a period in which Standard Chartered was looking very good. Only last week, it revealed an actual increase in its wholesale banking revenues and crowed about its unrivalled position as a facilitator of growth between emerging markets and the West. This looks threatened now that StanChart is in danger of losing its licence to operate in New York.
The sort-of-good news, however, for anyone working at Standard Chartered is that their net worth may be less affected than would be the net worth of anyone working at a rival investment bank in a similar situation. As we said back in March, Standard Chartered employs very few code staff, leaving it free to pay comparatively high cash bonuses. It also allows any employees with more than $120k of their bonus deferred to elect to have half of it delivered in cash. In the current situation, that looks like a blessing.
Standard Chartered displayed, “evident zeal to make hundreds of millions of dollars at almost any cost.” (Telegraph)
Standard Chartered PLC strongly rejects the position and portrayal of facts made by the New York State Department of Financial Services. (StandardChartered)
CMC Capital, a partnership set up late last year by Carlo Calabria, the former head of international mergers and acquisitions at Bank of America Merrill Lynch, has made its first senior hires: a former utilities analyst and a leveraged finance specialist. (Financial News)
What makes a good equities fund manager. (Financial News)
The backlash against the rich has gone global. (Financial Times)
10 top Wall Street interview questions. (BusinessInsider)