Deloitte LLP Chief Executive Joe Echevarria on Monday fought back against allegations that his firm helped Standard Chartered hide transactions with Iran, saying charges by the top New York state banking regulator were "distortions of the facts."
By Carrick Mollenkamp and Matt Scuffham, Reuters | August 13, 2012
British bank Standard Chartered is rushing to reach a settlement within days over charges it hid transactions tied to Iran and is set to resume talks with U.S. regulators on Monday, sources familiar with the situation said.
Global banks that ship increasingly sensitive and sophisticated work overseas to save costs will be forced to step up oversight of back office operations after industry scandals point to lapses involving offshore units in India.
Allegations that a banking unit of Standard Chartered Plc schemed with Iran to conceal billions of dollars in transactions have dragged Deloitte into the spotlight in another hit to the global accounting and consulting firm.
A rogue Standard Chartered Plc
banking unit violated U.S. anti-money laundering laws by
scheming with Iran to hide more than $250 billion of
transactions, and may lose its license to operate in New York
State, a state banking regulator said on Monday.
A 30-year-old former Barclays Plc swaps trader in New York, who was fired from the bank in 2010, is among those drawing scrutiny from prosecutors in the deepening scandal over the manipulation of global benchmark interest rates.
State-controlled Royal Bank of Scotland said on Friday it has dismissed employees over an interest rate rigging scandal, but gave no indication of whether it would reach a settlement soon with investigating
The top U.S. housing regulator rebuffed a plan by the Obama administration to cut mortgages held by struggling homeowners, a blow to the White House, which is keen to show voters it can help fix the housing market.
U.S. Treasury Secretary Timothy Geithner, under pressure for not doing enough to stop fraudulent manipulation of a key benchmark interest rate, told lawmakers on Wednesday he alerted the appropriate authorities "early on."
Sanford Weill, the financial tycoon who pioneered the modern U.S. megabank that mixes deposit taking and ending with riskier investment banking activities, called for the model to be dissolved in an interview televised on Wednesday.
Hundreds of bailed-out banks are still struggling to repay taxpayers and will soon find it even harder to make required dividend payments to the U.S. Treasury, according to a report on Wednesday by the watchdog for the government bailout program.
A judge rejected a request on Monday for the former chairman of Spain's Bankia, Rodrigo Rato, to give evidence in a fraud case against him and other executives at the failed bank before he appears at a parliamentary inquiry on Thursday.