9 Aug 2012

London bank shares rebound in wake of scandal

5:06 am on 9 August 2012

Shares in the scandal-hit London based Standard Chartered bank have rebounded, showing signs of recovery after their steepest one-day decline in decades.

Shares opened 6.5% higher in London morning trade, after wiping $17bn off the bank's market value on Tuesday reports the BBC.

New York's State Department of Financial Services has accused the bank of laundering as much as $250bn for US-sanctioned Iran, and threatened to revoke its NY licence.

The bank has denied the allegations.

But the latest accusation against a British bank from US authorities has angered some politicians in Britain, who have spoken of a perceived "anti-British bias" in Washington, designed to weaken London as a financial centre.

London Mayor Boris Johnson warned that regulation in New York should not become "a self-interested attack on London's status as the pre-eminent financial centre".