Firstly, we have a Libor Saga going on in the UK for manipulating the Libor rate... Now, we have something more serious... something more political...
The linking of Standard Charted Bank to a sanctioned country, Iran. This case involves money laundering act that might be linked to funding of nuclear projects by Iran. This is ain't a small case.
There's a few possible...
Firstly, the bank might exercise their influence to 'convince' the policy makers that they will pay a few hundred million to sweep the case under the carpet.. Getting their ass cleaned. That will make the policymakers look like they are doing their job... especially it's nearing the mid term election for the president.
Secondly, the bank might get additional support from the London policy makers to protect the UK bank. Ultimately, a oust of a major UK bank out of the States is a huge loss to jobs and business...
Thirdly, and the most extreme and the least likely... Standard charted will be kicked out of US and US will be accused of t-r-ying to dominate the commercial banking sector, in order words, protectionism.
Nonetheless, I still see opportunity in this mess.. Just like how Goldman Sachs did with SEC a few years ago...
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