{"id":13271,"date":"2012-08-08T02:15:14","date_gmt":"2012-08-08T00:15:14","guid":{"rendered":"http:\/\/www.myza.co.za\/08\/update-1-standard-chartered-a-risk-to-us-custody-banks-bernstein\/"},"modified":"2012-08-08T02:15:14","modified_gmt":"2012-08-08T00:15:14","slug":"update-1-standard-chartered-a-risk-to-us-custody-banks-bernstein","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/update-1-standard-chartered-a-risk-to-us-custody-banks-bernstein\/","title":{"rendered":"UPDATE 1-Standard Chartered a risk to US custody banks-Bernstein"},"content":{"rendered":"

\t\t<\/span><\/p>\n

<\/span><\/p>\n

<\/span><\/p>\n

BOSTON<\/span> Aug 7 (Reuters) – Fallout from Standard Chartered
\nPlc’s alleged transactions with Iran could quickly
\nbecome a liability to top U.S. custody banks, Bernstein Research
\nanalyst Brad Hintz said on Tuesday.<\/p>\n

<\/span><\/p>\n

Hintz said British-based Standard Chartered is an important
\nagent bank for U.S. custody banks such as Bank of New York
\nMellon Corp, JPMorgan Chase Co and State Street
\nCorp. Standard Chartered provides the banks important
\naccess to central securities depositories in mainland Asia and
\nAfrica.<\/p>\n

<\/span><\/p>\n

Hintz said in a research note that the U.S. custody banks
\nrely on extensive sub-custodian networks to pass on economies of
\nscale and scope to big institutional clients.<\/p>\n

<\/span><\/p>\n

“If a sub-custodian were to be found guilty of an internal
\nconspiracy to hide prohibited transactions from U.S. regulators,
\nU.S. global custodial banks exposed to that sub-custodian may
\nfall under increased scrutiny from their fiduciary clients,”
\nHintz said in his note.<\/p>\n

<\/span><\/p>\n

“Among the more severe consequences, exposure to Standard
\nChartered could result in reputational damage and potentially
\nnegatively impact the ability of a U.S. global custodian to win
\nnew mandates from public funds and other fiduciary clients.”<\/p>\n

<\/span><\/p>\n

Meanwhile, some sub-custodians could benefit from the
\nupheaval at Standard Chartered if U.S. custody banks seek
\nreplacements. Hintz said potential beneficiaries include HSBC
\nBank Plc, Deutsche Bank AG and Citigroup
\nInc. He also said Standard Bank Group Ltd, which
\nsplit from Standard Chartered in 1987, plays a big role in
\nAfrica for BNY Mellon and could pick up more business.<\/p>\n

<\/span><\/p>\n

The New York State Department of Financial Services said on
\nMonday that Standard Chartered “schemed” with the Iranian
\ngovernment, which is subject to U.S. sanctions over its nuclear
\nprogram and hid 60,000 secret transactions to generate hundreds
\nof millions of dollars in fees over nearly 10 years. The
\nregulator has threatened to tear up Standard Chartered’s state
\nbanking license for allegedly hiding $250 billion in
\ntransactions tied to Iran.<\/p>\n

<\/span><\/p>\n

Hintz said JPMorgan and State Street each have extensive
\noperating reliance on Standard Chartered as a sub-custodian in a
\nnumber of markets, such as India, Hong Kong, Thailand, Ghana and
\nZambia. BNY Mellon has exposure in Bangladesh and Taiwan, Hintz
\nsaid.<\/p>\n

<\/span><\/p>\n

JPMorgan and BNY Mellon declined to comment. State Street
\nwas not immediately available to comment.<\/p>\n

<\/span><\/p>\n

\n

\t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"

BOSTON Aug 7 (Reuters) – Fallout from Standard Chartered Plc’s alleged transactions with Iran could quickly become a liability to top U.S. custody banks, Bernstein Research analyst Brad Hintz said on Tuesday. Hintz said British-based Standard Chartered is an important agent bank for U.S. custody banks such as Bank of New York Mellon Corp, JPMorgan […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-13271","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13271","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=13271"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13271\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=13271"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=13271"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=13271"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}