Shares in Standard Chartered climbed 3% on Friday following a positive development in a long-running civil case. The London-based, Asia-focused bank announced it had received a favourable ruling from the U.S. Department of Justice, providing relief to investors. This rally comes after a significant sell-off the previous week, which was triggered by political pressure from a U.S. lawmaker.
The recent volatility began when U.S. Republican lawmaker Elise Stefanik wrote to the Attorney General, calling for a probe into the bank over allegations of sanctions evasion. Stefanik claimed an unspecified case against the bank was nearing its expiration and urged for action to be taken before that deadline, causing investor concern and a drop in the share price.
In a statement released late on Thursday, Standard Chartered expressed its satisfaction with the Department of Justice’s recent filing. The bank stated it was “pleased and unsurprised” by the development, which it said pertained to the legacy “Brutus” qui tam case. The bank firmly maintained that the claims at the heart of the case have always been false.
This ruling represents a significant legal victory for Standard Chartered, helping to alleviate immediate fears of renewed regulatory scrutiny from U.S. authorities. The market’s positive reaction underscores the sensitivity of the bank’s share price to legal and political developments related to its historical compliance matters.
