The New York Department of Financial Services (DFS) has moved to end a period of supervision of Standard Chartered (LON:STAN) at the end of the year, the blue-chip group has said. The Asia-focused lender agreed to the monitoring back in 2012 as part of a wider settlement with the US over its dealings with Iran-related entities, Reuters reports.
Standard Chartered’s share price has been little changed in London in today’s session, having inched 0.24 percent lower to 593.90p as of 10:30 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.39 percent in the red at 6,952.06 points.
US regulator ends supervision
StanChart said in a statement yesterday that the term of the monitorship appointed by the New York DFS will expire on December 31. The bank first agreed to supervision with the regulator in 2012, and agreed an extension to that deal in 2014 and in 2016.
“The Group is pleased that the DFS has acknowledged the Bank’s progress in remediating and improving its financial crime controls to the point that a monitor is no longer necessary,” StanChart said in the statement, adding, however, that the move did not affect the status of a separate investigation into compliance with US sanctions. Last months, a report in Bloomberg suggested that the Asia-focused lender could face a $1.5-billion penalty in the US or allowing customers to violate Iran sanctions.
Analysts on Standard Chartered
Credit Suisse, which sees Standard Chartered as an ‘underperform,’ lowered its price target on the stock from 545p to 535p last week. According to MarketBeat, the Asia-focused lender currently has a consensus ‘hold’ rating and an average price target of 730.31p.