(MENAFN- Kuwait News Agency (KUNA)) Shares in scandal-hit bank Standard Chartered continued to recover Wednesday after it agreed a "lower than anticipated" settlement with regulators over allegations that it hid transactions with the Iranian government.
The 160-year-old bank agreed to pay the New York State Department of Financial Services (DFS) 340 million dollars (217 million pounds) after it was accused of exposing the US to terrorists, drug kingpins, and weapon dealers.
Shares rose 3 percent as investors said the pay-out showed that Standard was taking quick action to resolve the reputation-damaging situation - although other regulators are investigating.
The bank saw 6 billion pounds wiped from its value in the immediate aftermath of claims that it hid 250 billion dollars (160 billion pounds) of transactions, and shares are still some 9 percent lower than when the scandal emerged.
"The quick and decisive action which Standard has shown in settling this initial claim, which itself is lower than anticipated, has resulted in a further spike to the share price in early trade," dealers said.
"The market will remain cautious until the extent of any further regulatory sanction is known, but in the meantime Standard appears to have taken its rap on the knuckles and is preparing to move on."
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