Saturday, August 11, 2012

Will Lawsky require Standard Chartered to provide ultra transparency as part of money-laundering settlement?

Given that New York banking regulator Benjamin Lawsky holds all of the leverage in the negotiation with Standard Chartered over money-laundering, the question is will he require it to provide ultra transparency as a settlement condition?

As reported by Bloomberg, Standard Chartered has already agreed to have a monitor.

The problem is finding a monitor that can be trusted?

The logical solution is the market as it is the only truly trustworthy monitor.

By requiring Standard Chartered to provide ultra transparency including disclosing on an ongoing basis its current global asset, liability and off-balance sheet exposure details, Mr. Lawsky ensures that the market has the information that it needs to monitor Standard Chartered.

Standard Chartered shouldn't object as it claims to have a culture that is so upstanding that it has nothing to hide.

In fact, Standard Chartered should embrace the requirement to provide ultra transparency as it offers the opportunity for Standard Chartered to show that it is a banking organization that can be trusted.

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