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Law360: "Lawsky Bares Teeth With Latest Standard Chartered Penalty"

08/20/2014 News Release Imgage

Law360: "Lawsky Bares Teeth With Latest Standard Chartered Penalty"

. . . Lawsky showed he was willing to take a tough line against Standard Chartered, but he could have lashed out with an even harsher penalty, said John Alan James, a professor at Pace University’s Lubin School of Business.

Standard Chartered is among the largest handlers of dollar-clearing transactions in New York, and Lawsky could have rescinded the bank’s license to conduct business in the state if the violations of the original settlement proved sufficiently severe, he said.

But the seriousness of that move may have caused Lawsky to hold at least some of his powder, James said.

“[New York State] will be reluctant to go to this extreme because of the keystone role [Standard Chartered] plays in the [foreign exchange] markets,” he said. “No one in the financial regulatory oversight community would want to deal with the huge mess that a [Standard Chartered] demise would incur.”

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