New York Law Enforcement Upstages Feds in LIBOR and Money-Laundering Scandals

New York authorities got ahead of federal regulators by taking swift action in the latest financial scandals: the alleged money laundering by Standard Chartered Bank and the manipulation of the London Interbank Offered Rate (LIBOR). From law firm Ballard Spahr:

“In a one-two punch reminiscent of Eliot Spitzer’s tenure as New York Attorney General, that State’s law enforcement authorities beat their federal counterparts to the punch by bringing proceedings in the most highly publicized financial scandal of the year: Standard Chartered Bank’s alleged money laundering on behalf of Iranian entities and the alleged manipulation of LIBOR…

As in the Spitzer era, federal authorities have been critical of New York’s initiatives. New York can be expected to cooperate with federal authorities, but these recent developments suggest impatience with the lagging pace of those parallel investigations. Particularly interesting is the possibility that, if the documents sought in the New York probe should bear fruit, other state law enforcement officials might be emboldened to follow suit.”

Read the full update, Shades of Spitzer: New York Law Enforcement Takes Aggressive Stance on AML and LIBOR Scandals - Ballard Spahr LLP»