Shares in Standard Chartered plunged more than 20 per cent this morning following accusations the bank ‘schemed’ with Iran to launder £161billion.
The huge drop comes after shares in the bank fell six per cent before markets closed on Monday afternoon.
The British-based global institution could lose its US licence after New York’s top regulator accused it of running a ‘rogue’ business yesterday.
A report claims the bank was involved in 60,000 secret transactions with Iran and falsified wire payments over a ten-year period.
The bank ‘left the US financial system vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes’, according to the Supt of New York’s State Department of Financial Services.
Senior bankers forged wire transfers in London, which were then processed through its New York arm, the report claims.
Bank bosses allegedly encouraged the practice, which reaped hundreds of millions of pounds in fees.
A series of emails revealed they were aware it could have ‘very serious or even catastrophic reputational damage’ to the banking group.
A bank spokesman confirmed it is conducting a review of its US sanctions compliance with US enforcement agencies and regulators.