Standard Chartered (STAN.L), the British bank facing explosive money laundering allegations from New York State's top bank regulator, appears to have been burned by a decision to waive attorney-client privilege, a move that usually helps appease U.S. authorities. While firms on occasion hand over troves of privileged documents to investigators, that practice generally comes with an understanding that the information will not be made public. But the 27-page complaint filed earlier this week by the New York State Department of Financial Services, a newly created regulator led by former prosecutor Benjamin Lawsky, is jam-packed with emails detailing damning legal advice used to illustrate a “rogue institution.” Lawyers who work on similar investigations say that Lawsky’s actions may make corporations think twice before turning over sensitive documents. “The action of this regulator will have a deterring effect on the nature and extent of cooperation in similar kinds of cases without some specific assurances,” said Robert Bennett, a prominent white-collar defense attorney at Hogan Lovells who represented Enron and HealthSouth in criminal investigation. In a surprise move, the New York regulator broke away from federal authorities also probing the bank and threatened to strip Standard Chartered of its state banking license.... Continue to read.
No comments:
Post a Comment