Well, that didn’t last very long. After howling in indignation over accusations it laundered money for Iran, Standard Chartered bank caved in, agreeing to a whopping $340 million settlement with New York’s Department of Financial Services.
The outcome was never really in doubt. Regulators hold the trump cards in these disputes. In this case it was the bank’s license to operate in New York 
State – an essential cog in the bank’s daily operations. And the case would have gushed more bad publicity for the bank had it continued to fight the charges.
Peter Sands won a skirmish but lost the battle. By loudly objecting to the charges and enlisting support from home-turf regulators in the UK, Sands warmed the hearts of beleaguered bank CEOs everywhere and halted the slide in the bank’s shares.
But it was a temporary victory. Sands ultimately agreed to pay the largest fine ever levied by a single regulator in a money laundering case.
My guess is Benjamin Lawsky, chief of the NYDFS, added a couple of million to the fine just for the aggravation Sands caused. Striking back at your accuser might feel good but it is a poor strategy.
Standard Chartered can breathe a sigh of relief for now, but the story is far from over. Other regulators have yet to conclude their investigations, and in today’s charged political climate they will need to show they are at least as tough as New York when it comes to policing big banks.