StanChart's US$300 million fine raises heat on board

Investors question future of CEO Peter Sands and president John Pearce

Published Wed, Aug 20, 2014 · 10:00 PM
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[LONDON] A US$300 million fine on Standard Chartered for lapses in anti-money laundering controls has piled pressure on the bank's board, coming after a series of transgressions and a drop in earnings that had already prompted calls for change at the top.

Chief executive Peter Sands has faced criticism following big losses in South Korea, a slowdown in investment banking and the impact of tougher regulations. The bank warned in June that profit would fall in 2014 for a second straight year.

Some investors have already questioned the future of Mr Sands and chairman John Peace, prompting the bank to reject reports in July that it was planning for their succession.

The civil settlement announced on Tuesday by Benjamin Lawsky, the New York State financial services superintendent, came two years after Standard Chartered agreed to pay US$667 million to a variety of US regulators to resolve similar charges, including US$34…

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