standard chartered is talking about sums of $14 million. u know, that's an extraordinary gap. >> yes, it is. not only that, standard is claiming that they fully vetted these transactions in advance and as they were ongoing, so somebody is really inaccurate here and we'll find out who, i guess. >> stanley stays with us. coming up we -- >> china stock off in the london trade nearly 25%. >> was that the -- i think it was the hong kong trade. >> down quite sharply both in london and in hong kong and we've saw it down sing many digits. >> down 20%. we lost a fifth of the value. so 20% down this morning. there is an opportunity here. definitely an opportunity. we'll talk about that. in other news chevron said the fire is being contained but not out. blaze erupted monday evening at the plant in the san francisco bay area. smoke and flames could be seen billowing into the air and local residents were ordered to stay indoors. chevron said a gas leak was discovered shortly before the fire started. the plant accounts for 10% of refining on the west coa

the business of standard chartered is sound and well. i don't think it's going to take a hammering again. >> what about reputation al -- lasting reputational damage. it's described as a rogue bank, not necessarily substantiated in the settlement. any long-standing reputational damage? >> ing actually paid a lot more and so did others like barclays and everybody else. but i think -- i personally think that was very harsh. ing and barclays and all of these british banks, including hsbc, have been dealing with iran for the past 70, 80 years. you know, the sanctions came about 1980. are they just going to fold up and leave shop? unlikely. could they have done it and handled it a little better? you bet. again, to classify as a rogue bank, the general public reads the headlines and panics. that's just the general public. but time and tide move on. once they've seen the fundamental of the business is strong, that they're posting fantastic profits, and they'll continue to do so, it's a sound business, look at the shares now and they crept all th

standard chartered is in danger of losing its new york banking license. that would be a disaster for the british bank. the regulator alleges that standard chartered conducted hidden financial transactions with iran for almost 10 years. the illegal transactions may total some $250 billion, but the bank disagrees with that account. >> the state department alleges that this covers 60,000 transactions worth over $250 billion. according to standard chartered, the amounts in dispute cover less than $14 million. so, a tiny fraction. >> standard chartered specializes in the emerging economies of asia and africa. the allegations have come as a surprise to many. >> until now, standard chartered were seen as a safe haven. there were not part with any scandals or allegations, and as a result, they traded above peers because of this. this, however, does take them down a notch and could result in a de-rating of the stock. >> shares have fallen 26%. u.s. officials are to discuss the matter with standard chartered in a meeting scheduled for next week. >> for a look at mo

york regulatory authority that just popped up under andrew cuomo and they are attacking the standard charter which is a u.k. based bank but they do most of their business. and this is developing into a bit of a turf war and the idea is that the u.s. is trying to attack the u.k. city the city of london in a power grab to try to steer business toward wall street versus the city. it's not about iran it's not about iran's not about the politics there's nothing about the politics because clearly of a was then the question of h.s.b.c.'s money laundering and drug trafficking or barclays libel or rigging would come into play but it doesn't this is purely a war now between wall street versus the city of london this is what we've been waiting for this is the this is going to be the greatest show on earth yes but this is the poodle that bites the hand that feeds it you know they they were fine acting as a poodle for all these years and egging on the u.s. bully to attack invade and steal and grab resources from other nations and other sectors of the world economy. and yet here now they're all like wanti

that would never happen to you or i but if you're a big bank not to worry we'll talk about standard chartered banks and the rule of law or lack thereof in this country let's get to today's capital account. so by now everyone knows paul ryan is mitt romney's v.p. pick for his presidential campaign but what surprise addition to the ticket we've seen courtesy of some media reports and commentators is rand as in the supposedly tax hating capitalism loving libertarian inspiring objectivist philosopher now though paul ryan has publicly distanced himself from rand that's neither here nor there he is a politician after all and so many are dissecting the rand inspiration ryan has cited publicly over the years so we're now on the ticket we thought we should look at how her objectivist anti-socialist idiology has been manifesting in her acolytes so far well looking back at tarp medicare part d. and the iraq war paul ryan obviously voted against subsidizing the banks and the per script drugs of old folks and green lighting a war that added hundreds of billions of dollars to the deficit he purports to wan

welcome back standard chartered is trying to reach an early settlement over charges that had two hundred fifty billion dollars of transactions tied to iran that's according to reuters so with this news it seems similar it would appear to other banks who have quietly settled similar accusations such as barclays credit suisse and j.p. morgan so i talked to our guest about the rule of law or lack thereof in this country because i'm pretty sure if we were doing these things as individual people we might be arrested but first i did want to touch on paul ryan's plan to cut medicaid we didn't get to that before the break but for medicaid cuts are much more dramatic in his plan for medicare and it turns it into block grants for states so i asked karl denninger trader and author of leverage if this is just and that impact take a listen. the problem with block grants is that moving money around from one part or another doesn't change what gets spent always changes whose budget it blows up so is the real problem with shifting is that again if i can source you to pay somebody else's bill then at the

standard chartered, one of the u.k.'s largest banks, takes a major blow after u.s. regulators accused of hiding to under $50 billion in transactions with iran. fleeing the violence in syria in droves. refugees are spilling across the border at a rate that hard to handle. >> about 500 people are coming every day, but the authorities are having to send them to another camp which is only just being built. >> and talk about some hometown advantage -- great britain is hang an olympics to remember and the games aren't over yet. >> welcome to our viewers on pbs in america and around the globe. it was a bruising day for the british bank standard chartered, with its shares plummeting after accusations from u.s. regulators that it laundered money for iran. the uk's fifth largest bank denies it hit over $250 billion of secret transactions, but american authorities say it violated its embargo. our business correspondent reports. >> can a bank really stand for something? can it balance its ambition with its conscience? >> this is how standard chartered sells itself -- a bank wit

reaping standard charter hundreds of millions of dollars in fees, end quote. ambassador mike wallace pushing for tougher enforcement of those sanctions includes a call today for the u.n. to suspend iran's membership. mr. ambassador, nice to have you here. >> thank you for having me. >> if you would weigh in first whether you think new york should revoke standard's license? >> i don't think it's time for a slap on the wrist. time to send a message the most egregious violators should hear loudly and clearly it's not acceptable to do business in iran. if the report of standard charter's business in iran are true, we think they should get the equivalent of the financial death penalty, losing their license to do business in the united states and new york. >> in the entire united states? >> we do. we don't think it's appropriate for any business that operatings in iran, does extensive business in iran to have access to u.s. markets. the choice is clear, do business with iran or the united states. we called for an economic blockade. it's clear the american markets ar

welcome back, federal and new york authorities are forming a group to negotiate a settlement with standard chartered saying they illegally conducted business with iran. steve leisman has the latest. >> thank you, news that a settlement group is being formed leaves unclear the reason. is standard trying to move as quickly as possible to resolve the issue before a hearing, or is it because the government is trying to say the case was filed prematurely. benjamin lawsky said that laundered money. there is a possibility that lawsky could pull their banking license. he moved ahead without the corporation of other agencies and is created an international incident. you can't help wondering whether all of the beating up of british banks is protectionism and if it's motivated by jealousy. several private experts said lawsky's case seems to ignore key changes to the law that took place in 2008 and 2009. >> you know, steve, stay there, last week the british establishment all got together and pushed bob dimon out of bar cl barclays. and now there are reports that they're considering counter suing u.s. regulators

standard chartered despite being up, down.etra dax, down, and ftse 100, cac, all down by about the same amount. >> stunning gain in those last two weeks since those monti comments. bond yield today, bund steady 1.44%. pan irbond at 6.94%. spanish yield below the 6% mark. they have been steady. bank of england releases quarterly inflation yields. we expect a downgrade in growth forecast. what else will he say about funding for lending and any hints about whether there will be any more policy. euro/dollar, 1.2444, week high. aussie/dollar pulling away from the 1.06 level, week high. now that's where we stand ahead of 9 u.s. open. to recap events and asian action overnight, we're joined by sixuan li. >> asian markets extended gains from central banks in the region and overseas. shares in shanghai posted their fourth straight session of gains, up by 0.2%. investors took cautious positions ahead of inflation. industrial production data due out tomorrow. hang seng took a breather after recent gains, down by a touch. shares of pri ho

standard chartered shares were up three percent despite agreement to pay three hundred forty million dollars fine over allegations of breach sanctions against iran and they've admitted to no wrongdoing max but i want to turn to for days before they settled with this new new york regulator the new york department of financial services i want to turn to a clip from our show the kaiser report where we discussed this and you said this you know go to well that's a good point to make is that standard chartered thought and they say that they would they had to deal with the department of justice and the f.c.c. and these other regulators but there is this new regulator new york state department of financial services that andrew cuomo created in the last year so this is just perhaps their way of making their mark on the scene on the global mafia sort of racket shakedown scene and they're saying hey we're the new al capone on the block we have to play big we have to make a big mark so you know we need our kick back now to be just a shakedown by the this new group of standard charter. which prob

. >> susie: that standard charter money laundering scandal keeps getting bigger. now the white house says the u.s. treasury is closely monitoring the investigation of the u.k. bank. standard charter is accused of scheming with the iranian government to launder $250 billion. the bank's stock plunged 23% in london trading today. so what happens next? here to answer that: annemarie mcavoy, a former federal prosecutor specializing in money laundering. she is now a professor at fordham law school. ann marie what do you think is going to happen next, how much bigger is this going to get? >> this is only the beginning, this is going to get much bigger. there are going to be numerous investigations, not only the state but the federal regulators will get involved, the treasury department is getting involved, from will be criminal investigations, the f.b.i. is investigating. there will probably be an investigation an delight -- deloitt's involvement. it's going to get big and fines will be huge. in the end it will end with fines at the least. >> susie: how big are the penal

bbc news, new york. >> standard chartered has settled one particular problem. only it was last -- if only it was that simple. germany, the eurozone powerhouse saw growth but other comuntries still feeling teh strain. >> european leaders have managed to squeeze in a holiday. the german chancellor is back from hiking in italy. president hollande sunning himself in france. the economic news will not help them react. the latest numbers show the eurozone economy shrinking by 0.2%. within that, germany is just growing, but only just. they raised their g.d.p. by 0.3%. portugal's national output has fallen by 1.2% in just three months. >> what these figures indicate is that slowdowns are really starting to hit home among business and consumers. >> the eurozone economy has been pulling apart in the politicians are trying to keep it together. germany and spain had each had the processions in 2008. downturn was slightly worse. now they are 2% bigger than at the start of the crisis. spain is at 5 percent smaller and still shrinking. they make high and electronics here in b

the ceo of standard chartered cancelling his interview with me at the last minute. we'll talk about why the interview may have been pulled so mysteriously, and taxes time, obama economic advisor saying americans need to face the hard truth and pay up in taxes. and intering the dog days, why almost 3 million petless homes saying about the economy. opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime... tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 trade at charles schwab for $8.95 a trade. tdd#: 1-800-345-2550 open an account and trade up to tdd#: 1-800-345-2550 6 months commission-free online equity trading tdd#: 1-800-345-2550 with a $50,000 deposit. tdd#: 1-800-345-2550 call 1-866-294-5411. >>> welcome back, peter sands who has been accused of doing business with iran illegally was scheduled to respond here. an hour ago we got this e-mail saying he would be postpo

money laundering standard charter they all went through london and it all touches on something you've been talking about here really hypothecation because only in london do you have infinite really hypothecation that is to say you can sell the same security an infinite number of times with no collateral correct and that's the problem you know glossed ego was repealed because the u.s. banks felt like they could be true london where you had infinitely above the geisha so i do i think there is something sick of the heart of the city and i think that thing is the ability to multiply up a tiny base of collateral to whatever level you want i think i think that's absolutely connected with. all of these scandals i'm not i don't i don't i'm not completely convinced that what standard chartered is done is particularly awful because i'm not sure the united states really has any right to be dictating. to individuals and businesses which countries they can do business with while this is another aspect to this growing crisis john aziz because here you have internal e-mail e-mails at standard charte

bernard john we had another banking scandal last week with standard chartered there being there being looked into now as part of a money laundering scheme and their response from the u.k. from boris johnson from folks in the city is that the u.s. is taking a very anti british approach to this that they are calling the kettle black that they're not looking at their own back yard on wall street but the fact remains john aziza i'm curious what you think about this a i g limon brothers m.f. global the london whale barclays lie bore ages of p.c. money laundering standard charter they all went through london and it all touches on something you've been talking about here really hypothecation because only in london do you have infinite really hypothecation that is to say you can sell the same security an infinite number of times with no collateral correct and that's the problem you know glossed ego was repealed because the u.s. banks felt like they could be true london where you had infinitely above the geisha so i do i think there is something sick of the heart of the city and i think that t

by the way, it's not related to standard chartered. it's totally independent. bank, though, has a huge franchise in africa. and so a movement away from one of these handful of banks with local activities to standard actually could move the needle for them. >> so the bottom line on an hsbc, citi or deutsche bank, if this shift does happen, that's not necessarily a reason to invest. >> no. no. it's a positive thing. it actually gives you in the case of a citi, let's recognize, in this is a global bank with strong activities around the world. it's just another tip of the hat to citi's global franchise. that franchise has value and this is an example of it. >> brad, good to speak to you. thanks for your time. >>> china out with inflation and industrial production data this morning. as the cpi comes in 1.8% higher, does china now have more room to ease? we talk to an emerging market strategy, coming up, next. at sleep number, individualizing your sleep is at the heart of every innovation. wow. that feels really good! and now, sleep number introduces our new memory f

. >> susie: standard chartered reached a settlement today with new york state banking regulators over money laundering charges. the british bank will pay $340 million to end a showdown with the state's superintendent of financial services. new york had accused the bank of laundering $250 billion worth of illegal transactions for iranian clients over the past decade and lying to regulators. as part of the settlement, standard chartered agreed to allow state examiners on site to oversee its transactions for the next two years. the deal means a hearing scheduled for tomorrow on revoking standard chartered's state banking license has been called off. joining us now to talk more about this, brian gardner, washington analyst of keefe, bruyette and woods, the banking research firm. so brian, does the penalties fit the crime here? >> it's tough to say. it seems to and the penalty's not over yet. this is the new york portion of it. the federal government will weigh in sometime over the next few weeks. treasury, justice department and the federal reserve. what i'm happy about with this part of

-- rbs and standard charter, there are differences, but the rbs is more serious. listen to this. >> there are actually sanctions. the fundamental problem is a problem of perception. it's where most european banks assume that an iranian is innocent until proven guilty. it doesn't mean they're terrorists or soon to be terrorists. america wants british banks and foreign banks to assume they're guilty until proven innocent because of the sanctions in place and those two cultural differences are causing the biggest problem. >> and the outcome for rbs, like standard charter, will be to come. >> thank you for all of that. i suppose all the scientists in nasa are going to feel like anxious parents because mars' rover is expected to take its first test-drive. it's over two weeks since it landed on mars, scientists think it's ready to embark on the two-year mission to explore the planet for signs of life. >> curiosity's first baby step on mars. a little wig -- wiggle of its wheel shows the rover is ready to roll, later today it will go on its first test-drive, forward a few