StanChart: what's to stop a regulatory body going rogue?

Still possible that the New York DFS allegations are untrue.

Whether true or not, the New York Department of Financial Service's accusations have caused a whole lot of trouble for Standard Chartered, but the key point is that they still may not be true.

The accusations are fairly detailed, but are also unbacked by facts, highly unusual for this sort of announcement. The regulatory body will have to prove their allegations are true on August 15, but unfortunately for Stan Chart the markets operate on a "no smoke without fire" basis.

The company's shares suffered their steepest one-day decline in several decades on Tuesday, dropping more than 16 per cent.The shares have bounced back slightly since then, but the damage has been done.

“This has been incredibly damaging,” analysts at Charles Stanley confirmed in a note. “It is ruining all the good work that [has been] done in recent years.”

If the accusations do turn out not to be true, StanChart is still left in pieces. How are regulatory authorities allowed to wreak this sort of havoc? (British MPs have already accused the New York DFS of a motivated attack, in pursuit of an anti-city agenda.)

As a spokesperson for the British Banking Authority said:

"There really isn't anything that stops a regulatory authority from making accusations."

Perhaps reassuringly, every part of this incident points to something quite unusual on the part of the New York DFS. Firstly the announcement itself completely sidesteps normal procedure. Most cases of this kind would first be compiled in full, the evidence fully collected and an opportunity  given to the company in question to defend themselves, before an announcement could then be made. The language used by the NY DFS also stands out. "Rogue institution", as they dubbed StanChart, is just one example of the unusually inflammatory phrasing.

Standard Chartered. Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

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Here’s everything wrong with Daniel Hannan’s tweet about Saturday’s Unite for Europe march

I am Captain Ahab, and Dan is my great white whale, enraging and mocking me in equal measure through his continued political survival.

I was going to give up the Daniel Hannan thing, I really was. He’s never responded to this column, despite definitely being aware of it. The chances of him changing his views in response to verifiable facts seem to be nil, so the odds of him doing it because some smug lefty keeps mocking him on the internet must be into negative numbers.

And three different people now have told me that they were blissfully unaware of Hannan's existence until I kept going on about him. Doing Dan’s PR for him was never really the point of the exercise – so I was going to quietly abandon the field, leave Hannan to his delusion that the disasters ahead are entirely the fault of the people who always said Brexit would be a disaster, and get back to my busy schedule of crippling existential terror.

Told you he was aware of it.

Except then he does something so infuriating that I lose an entire weekend to cataloguing the many ways how. I just can’t bring myself to let it go: I am Captain Ahab, and Dan is my great white whale, enraging and mocking me in equal measure through his continued political survival.

I never quite finished that book, but I’m sure it all worked out fine for Ahab, so we might as well get on with it*. Here’s what’s annoying me this week:

And here are some of the many ways in which I’m finding it obnoxious.

1. It only counts as libel if it’s untrue.

2. This sign is not untrue.

3. The idea that “liars, buffoons and swivel-eyed loons” are now in control of the country is not only not untrue, it’s not even controversial.

4. The leaders of the Leave campaign, who now dominate our politics, are 70 per cent water and 30 per cent lies.

5. For starters, they told everyone that, by leaving the EU, Britain could save £350m a week which we could then spend on the NHS. This, it turned out, was a lie.

6. They said Turkey was about to join the EU. This was a lie too.

7. A variety of Leave campaigners spent recent years saying that our place in the single market was safe. Which it turned out was... oh, you guessed.

8. As to buffoons, well, there’s Brexit secretary David Davis, for one, who goes around cheerfully admitting to Select Committees that the government has no idea what Brexit would actually do to the economy.

9. There was also his 2005 leadership campaign, in which he got a variety of Tory women to wear tight t-shirts with (I’m sorry) “It’s DD for me” written across the chest.

10. Foreign secretary Boris Johnson, meanwhile, is definitely a liar AND a buffoon.

11. I mean, you don’t even need me to present any evidence of that one, do you? You just nodded automatically.

12. You probably got there before me, even. For what it's worth, he was sacked from The Times for making up a quote, and sacked from the shadow frontbench for hiding an affair.

13. Then there’s Liam Fox, who is Liam Fox.

14. I’m not going to identify any “swivel-eyed loons”, because mocking someone’s physical attributes is mean and also because I don’t want to get sued, but let’s not pretend Leave campaigners who fit the bill would be hard to find.

15. Has anyone ever managed to read a tweet by Hannan beginning with the words “a reminder” without getting an overwhelming urge to do unspeakable things to an inanimate object, just to get rid of their rage?

16. Even if the accusation made in that picture was untrue, which it isn’t, it wouldn’t count as libel. It’s not possible to libel 52 per cent of the electorate unless they form a distinct legal entity. Which they don’t.

17. Also, at risk of coming over a bit AC Grayling, “52 per cent of those who voted” is not the same as “most Britons”. I don’t think that means we can dismiss the referendum result, but those phrases mean two different things.

18. As ever, though, the most infuriating thing Hannan’s done here is a cheap rhetorical sleight of hand. The sign isn’t talking about the entire chunk of the electorate who voted for Brexit: it’s clearly talking specifically about the nation’s leaders. He’s conflated the two and assumed we won’t notice.

19. It’s as if you told someone they were shit at their job, and they responded, “How dare you attack my mother!”

20. Love the way Hannan is so outraged that anyone might conflate an entire half of the population with an “out of touch elite”, something that literally no Leave campaigners have ever, ever done.

21. Does he really not know that he’s done this? Or is he just pretending, so as to give him another excuse to imply that all opposition to his ideas is illegitimate?

22. Once again, I come back to my eternal question about Hannan: does he know he’s getting this stuff wrong, or is he genuinely this dim?

23. Will I ever be able to stop wasting my life analysing the intellectual sewage this infuriating man keeps pouring down the internet?

*Related: the collected Hannan Fodder is now about the same wordcount as Moby Dick.

Jonn Elledge edits the New Statesman's sister site CityMetric, and writes for the NS about subjects including politics, history and Daniel Hannan. You can find him on Twitter or Facebook.