It sounds like something from a John Grisham novel – obscure but ambitious state official tries to pin a terrorist money laundering wrap on a mighty global bank. Will he emerge triumphant? Benjamin Lawsky is the superintendent of New York States's Department of Financial Services. He used to be chief of staff to New York state governor Andrew Cuomo, so he knows his way around politics. He has taken on Standard Chartered, accusing the bank of laundering $250 billion (nice round number that) on behalf of the ayatollahs of Tehran. Lawsky branded the British bank a "rogue institution" and insisted that it explain "these apparent violations of law" (interesting that he doesn't seem sure whether they were violations or not) between 2001 to 2010. The bank has hit back hard, insisting that Lawsky not only based these charges on its own voluntary disclosures to the US authorities but also that he has got the law wrong. We can safely leave that one to the lawyers but what is intriguing about this business is – as our Citybriefing has pointed out – Superintendent Lawsky's job description includes "keeping New York on the cutting edge as the financial capital of the world." Could there be an agenda at play here? Could Lawsky be not just battling for truth and justice – that goes without saying – but also for Wall Street? After all, a bit of a pattern seems to be developing. Three major British banks – Barclays, HSBC and now Standard Chartered – have fallen foul of US regulators in the space of a month. Coincidence? Three British banks have been targeted by US regulators in a month. Isn't that a bit fishy?
David Hughes
David Hughes is the Daily Telegraph's chief leader writer. He has been covering British politics for 30 years.
Wednesday, 8 August 2012
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