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Looks like someone needs to watch more “Ozark.”
Standard Chartered has agreed to pay more than $1B in fines after repeatedly violating the US’ economic sanctions with Iran.
Some of you may be thinking: “wait, hasn’t Standard Chartered already coughed up $667M related to processing Iranian transactions between the years of 2001 to 2007?” Why, yes it has.
While StanChart was within its two-year deferred prosecution period with the US Justice Department, it revealed additional transactions involving Iranian clients after 2007 that were not discovered in the initial investigation. And Uncle Sam threw the book at ’em.
As part of the latest settlement, the bank admitted that between the years of 2008 and 2014, it processed hundreds of millions of dollars of transactions through its Dubai office on behalf of both Iranian entities and clients that had connections to other sanctioned countries.
The bottom line
SC owes global authorities more than $1.06B. The fines will be divided between the following institutions:
- $292M to the Justice Department
- $292M to Manhattan District Attorney office, which will forward $284M to NYC and NY State
- $180M to NY’s Department of Financial Services
- $164M to the Federal Reserve
- $133M to the UK Financial Conduct Authority
“BUT THAT’S THE WAY IT’S ALWAYS BEEN …”
We’re all living in 2019 while Lloyd’s of London is out here living in 1879.
Calling the culture at Lloyd’s “lax” would be an understatement. FFS, Lloyd’s in 2019 makes Stratton Oakmont circa 1994 look like a seminary. Drinking, cocaine use and unsurprisingly, sexual harassment, are rampant inside the London based insurance marketplace.
Following a scathing Bloomberg report that indicated multiple women had reported persistent harassment which included inappropriate touching and sexual assault, the company is cracking down. In addition to launching an anti-bullying and sexual harassment hotline, Lloyd’s is doing the unthinkable …. barring staff who are under the influence of drugs or alcohol from entering the building. Wait, what?
This comes 2-years after then CEO Inga Beale (a female, for the record) banned drinking at the institution … from 9-5. Of course, that didn’t stop staffers from hitting the pub at 7 AM to catch a heavy buzz before business began.
WTF indeed. You see, Lloyd’s ain’t your daddy’s insurance marketplace (for a bunch of reasons, actually). The company has been a boys clubs for more than 3 centuries and one employee reports that “If you don’t take cocaine, people these days seem to think there’s something wrong with you.” Getting rip-roaring drunk at a nearby pub during lunch is commonplace and becoming front-row wasted is made easier by an on-site bar (don’t worry it is getting converted to a coffee shop, now).
The potent cocktail of drugs and alcohol coupled with a male-dominated workforce has fostered a culture of discriminatory practices. How bad is it at Lloyd’s? Well, its first female underwriter wasn’t admitted until 1970 … and she was forced to communicate with clients through a male agent. *cringe*
IN OTHER NEWS
- Mayday. Boeing is feeling the effects of its little 737 MAX 8 fiasco. In fact, it didn’t sell a single 737 in March. The company did deliver 11 of the planes, which is half of its average monthly order for the two months prior. Boeing announced it’d be cutting production by 10 planes, preventing the build-up of too much inventory. There’s only so many places you can store a jumbo jet.
- Ripple effect. The fallout from Boeing’s mishap goes far beyond just its own sales, as companies like Southwest and American Airlines have removed MAX models from their fleets through at least early summer. American itself trimmed its first-quarter profit guidance due to disruptions it blames on fleet reduction.
- How about a raise? Bank of America is raising its minimum wage for employees to $20 per hour by 2021. Starting May 1st, wages will go up to $17 per hour, with additional increases coming within two years. It’s a move that comes just a day before CEO Brian Moynihan is scheduled to appear in front of the House Financial Services Committee, where he’ll undoubtedly be asked about income inequality. For those keeping track at home, Moynihan made $26.5M last year.
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