London

BILL Winters found more than just bad loans when he took over Standard Chartered Plc. He says he uncovered a culture where a few senior managers flouted ethics rules for personal gain and considered themselves "above the law". The lender is cracking down after "recent transgressions" concerning some employees' outside business interests, close financial dealings with co-workers and excessive expenses, according to a series of memos issued over the past two months that were seen by Bloomberg News.

In an effort spearheaded by general counsel David Fein, the British bank, which does almost all of its business in Asia and emerging markets, is also beefing up its internal investigation team with former detectives from the FBI, Scotland Yard, Hong Kong police and the New Zealand intelligence agency.