Shares of Standard Chartered fell sharply on Friday, dropping nearly 9% at one point, after U.S. Republican lawmaker Elise Stefanik called for an investigation into the bank over alleged sanctions evasion. In a letter addressed to Attorney General Pam Bondi and shared on social media, Stefanik urged the appointment of a special attorney to examine the bank’s compliance failures. She claimed an unspecified case against the lender was set to expire soon and pressed for immediate action.
Standard Chartered denied the allegations, stating that the claims in a long-running civil case were “entirely false” and had been repeatedly dismissed by U.S. courts. The bank noted that the claimant had pursued the case since 2012 and expressed confidence that the dismissal would hold on appeal. “We will fully cooperate with any relevant authorities and remain committed to combating financial crime,” the bank said in a statement. The Attorney General’s office did not immediately respond to requests for comment.
The bank’s stock, which had been down 1.5% earlier in the day, plummeted following the news before recovering slightly to close 7.2% lower. Traders attributed the volatility to Stefanik’s letter. Despite the drop, Standard Chartered’s shares have performed strongly this year, reaching a near 12-year high earlier in the week, buoyed by robust earnings alongside other European banks.
This is not the first time Standard Chartered has faced U.S. regulatory scrutiny. In 2019, the bank paid $1.1 billion to settle with U.S. and British authorities over transactions violating sanctions against Iran and other nations. It was also under a deferred prosecution agreement, extended for two years in 2019. The latest allegations have reignited investor concerns over the bank’s compliance risks, though it maintains that the claims lack merit.
