Standard Chartered, the bank alleged to have conducted $250 billion in business with Iran from 2001 to 2007, “strongly rejects” an order filed by the New York State Department of Financial Services yesterday, according to a statement, and was “surprised to receive the order” given ongoing discussions with U.S. authorities.
The bank may be looking at $5.5 billion in costs associated with the DFS order. That’s $1.5 billion in potential fines, $1 billion in lost revenue and $3 billion in market value if top managers leave in light of the charges, according to Liberium Capital’s Cormac Leech, via Bloomberg.
Last week, Standard Chartered’s CEO Peter Sands told analysts “our culture and values are our first and last line of defense.”
Knight Capital’s moved quickly to raise new capital after the firm suffered $440 million in trading losses last week due to a software glitch. Some dealmakers met in Knight’s Jersey City offices, others gathered in the law offices of White & Case, the law firm representing Jefferies, which injected cash into the deal.
Analysts’ takes on the Knight rescue deal? “Beggars can’t be choosers.“
Italian prime minister Mario Monti has emerged as the most determined challenger to Germany’s approach to the European debt crisis, according to The Wall Street Journal.
Best Buy founder Richard Schulze’s offer to take the company private may represent the best value for shareholders, according to Bloomberg.
Google is buying hundreds of millions of dollars in bonds backed by car loans, The Wall Street Journal reports, as low returns on Treasuries push corporations to find higher-yielding places to park their cash.
Citigroup may take a $6 billion charge as it writes down the value of its share in the Morgan Stanley Smith Barney venture.
British banks have set aside more than $14 billion to cover claims they sold payment protection insurance customers didn’t need or couldn’t use, and as that money hits the hands of consumers…economic stimulus! At least, so says The Financial Times.
It’s not high-frequency trading glitches that have investors losing confidence in stocks, writes Andrew Ross Sorkin, it’s the sluggish economy, and the sense that Wall Street is rigged. (Rigged by high-powered trading algorithms, you say? Yeah, Mr. Sorkin doesn’t quite touch on that.)
Former Treasury official and Willett Advisers chairman Steven Rattner talked to Yahoo’s Daily Ticker about the coming fiscal cliff.
Confidence among European CEOs is at a nine-month low, according to the latest YPO survey.