Headline in Citywire: “Standard Chartered ravaged by Iran claims” – Bank’s shares tumble 24% on claims it moved $250 billion for the Iranian government, exposing US financial system to ‘terrorists’ and ‘drug kingpins’.
In a strongly-worded statement, the DFS says the bank’s actions ‘left the US financial system vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes, and deprived law enforcement investigators of crucial information used to track all manner of criminal activity’.
Let’s be honest here, Greenspan and Bernanke are more of a threat to the US financial system than terrorists ever were. Rapists use bank accounts. Does that mean that Standard Chartered is facilitating rape? Sensationalism much?
investors panicked over the threat of lasting reputational damage accompanied by the possibility of a large fine and the loss of its banking licence in New York State
Sounds like the banking equivalent of BP. Did people stop buying oil from BP? I don’t think so. With banks being accused of gouging customers over bank fees, and all the other evils that’s been touted about banks lately, I doubt that people will be concerned with such abstract ideas as covertly funding of terrorism.
Will I invest? Probably not. It is on a premium to the other banks, and I’m loaded up with some good shares, anyway. Never say never, though. If I hear someone at work say they dumped their STAN, I might be tempted to see it as a buy signal. It worked for my BP. My observation on BP was that it wasn’t such a good crisis play as most people are likely to think. It worked for me on account of the fact that I bought near the bottom. That was pure luck on my part. Most people wouldn’t have seen so lucky, and consequently may not have done better than the Footsie, or even if they had just picked Royal Dutch Shell. In retrospect, there was only a very small window of real opportunity in BP at the time of about a week, and if you missed it, which would have been highly likely, then you might well have been disappointed with your performance.
Profitable investing to you all.