Settlement With Bank Over Iran Money Laundering Could Aid NY’s Budget

Wednesday, August 15, 2012

Met Life building, Standard Chartered Bank (Stephen Nessen/WNYC)

A record payout obtained by a New York state regulator from Britain's Standard Chartered Bank to settle charges it laundered money for Iran could make a big difference to the state budget.

The Cuomo administration announced Tuesday that Standard Chartered Bank will pay New York $340 million, or about a third of next year's anticipated budget gap of $982 million.

The amount comes to more than the entire budget for state parks and historic sites ($284.9 million and $298.7 million, respectively).

There's no plan for how to spend the money.

Instead, it will be added to the state's general operating fund — think of it as Albany's checking account.

On June 30, the fund had a balance of $2.935 billion, but that number can change dramatically from month to month due to one-time expenses and fluctuations in revenues.

The settlement is the largest-ever obtained by state banking regulators. Since 2007, Albany has received almost $700 million in penalties, largely from financial institutions including Citigroup, US Bank, Lloyds TSB and Credit Suisse.

The Standard Chartered settlement is the first headline-grabbing event prompted by a young agency.

The Department of Financial Services was formed last year when the Department of Banking was merged with the Department of Insurance, under the leadership of a former prosecutor and Cuomo aide, Benjamin Lawsky.


More in:

News, weather, Radiolab, Brian Lehrer and more.
Get the best of WNYC in your inbox, every morning.

Leave a Comment

Register for your own account so you can vote on comments, save your favorites, and more. Learn more.
Please stay on topic, be civil, and be brief.
Email addresses are never displayed, but they are required to confirm your comments. Names are displayed with all comments. We reserve the right to edit any comments posted on this site. Please read the Comment Guidelines before posting. By leaving a comment, you agree to New York Public Radio's Privacy Policy and Terms Of Use.


Latest Newscast




WNYC is supported by the Charles H. Revson Foundation: Because a great city needs an informed and engaged public


Supported by