Standard Chartered Shares Plunge 8% Amid U.S. Lawmaker’s Allegations of Illegal Payments

Standard Chartered PLC's stock tumbled 8.21% to 1,291.5 on Friday following accusations by U.S. Representative Elise Stefanik of facilitating illegal transactions. The Republican lawmaker called for an investigation into the bank's alleged $9.6 billion in payments to known terrorists, claiming China used its systems to purchase sanctioned Iranian oil.

The allegations come despite Standard Chartered's strong performance this year, with shares recently hitting a NEAR 12-year high alongside other European lenders. Stefanik specifically criticized New York Attorney General Tish James for inaction while approving the bank's licensure.

These transactions were reportedly concealed from mandatory disclosures under the bank's current deferred prosecution agreement, supervised by federal prosecutors in Washington, D.C. and New York. The controversy has cast a shadow over the financial institution's recent market gains.