Libor rate fixing controversy come reports that have once again rattled the respectable British banking industry, with the latest controversy involving Standard Chartered Bank.
New York state regulators Monday accused Standard Chartered Bank, a U.K.-based multinational operating in more than 70 countries, of money laundering. The allegations claim the bank covered up about $250 billion of illegal transactions with Iranian clients.
"In short, SCB operated as a rouge institution," Benjamin Lawsky, head of New York State's recently created financial regulator, said in a legal order issued Monday night.
Standard maintains the claims are inaccurate, and that 99.9% of its dealings with Tehran complied with regulations. The bank will faceoff with regulators next week.
But now other U.S. regulators say they don't think Standard Chartered Bank's wrongdoing was nearly as egregious as originally reported.