Following New York State Settlements, Some Foreign Banks Consider Charter Shopping

By Brian Monroe and Colby Adams

In the wake of two state-issued fines that totaled over $500 million dollars, several foreign banks with chartered branches in New York are considering moving elsewhere, say sources with knowledge of the matter. The potential moves stem from two settlements-against Standard Chartered Bank and Bank of Tokyo Mitsubishi UFJ-imposed by the New York State Department of Financial Services (NYSDFS) over the past year. The settlement agreements cited violations of New York recordkeeping regulations arising from the banks' transactions with blacklisted entities. A handful of large and midsize foreign financial institutions, some headquartered in Asia, have since quietly begun looking into...