Shares in Standard Chartered fell sharply on Friday after U.S. Representative Elise Stefanik called for a federal investigation into the bank over allegations of sanctions violations. The Republican lawmaker from New York issued a letter to U.S. Attorney General Pam Bondi urging the Justice Department to open a probe before a deferred prosecution agreement involving the bank expires next week. Stefanik accused the London-headquartered lender of continuing to evade U.S. sanctions and warned that any delay in launching an investigation could jeopardize the possibility of enforcement action.
She also called for the appointment of a special attorney to oversee the matter, citing what she described as inaction by New York Attorney General Letitia James despite her office having been informed of the bank’s alleged misconduct. The letter triggered a sharp market reaction. Shares of Standard Chartered dropped as much as 9 percent during Friday trading before paring losses to end the session down 7 percent.
The decline marked the worst single-day performance for the stock in over a year and dragged financial shares lower across the FTSE 100, which ended the day down 0.4 percent. In a statement, Standard Chartered rejected the allegations as “entirely false” and said the claims had previously been dismissed by U.S. courts. The bank reaffirmed its commitment to compliance and cooperation with authorities and noted it continues to invest heavily in controls to combat financial crime.
US lawmaker escalates pressure on Standard Chartered
The renewed scrutiny comes just days before the August 19 expiration of a deferred prosecution agreement reached with U.S. authorities in 2019. That deal, which followed a multiyear investigation into violations of U.S. sanctions on Iran and other countries, required Standard Chartered to pay $1.1 billion in fines and adhere to specific compliance obligations to avoid prosecution. While there has been no official response from the Justice Department, the timing of Stefanik’s intervention adds pressure to the agency ahead of the agreement’s expiration.
Legal experts noted that the appointment of a special attorney, as requested by the congresswoman, is rare and would require a determination that the matter presents a conflict of interest for the Department. The controversy threatens to derail a period of relative stability for the bank, which had seen its shares rise in 2025 amid improved earnings and favorable market conditions for European lenders.
Analysts watch for signs of formal inquiry
Standard Chartered, which has a major presence in Asia, the Middle East and Africa, is considered one of the most globally exposed of the UK-based banks. With the bank denying any wrongdoing and U.S. authorities yet to announce any formal action, the situation remains fluid. However, the expiration of the deferred prosecution agreement early next week has introduced a sense of urgency for both regulators and investors, who will be watching closely for any signs of escalation. – By Content Syndication Services.