Saturday, December 19, 2009

Lloyds Sees No Further Payment to U.S. on I.R. Iran

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UK bank Lloyds (LLOY.L) said it does not expect to make any further payment to U.S. authorities in regard to charges that it faked records so clients from restricted countries including Iran could do business with it, after agreeing to forfeit $350 million to the U.S. authorities in January. Lloyds Banking Group (LLOY.L) said on Wednesday it was continuing talks with the U.S. Office of Foreign Assets Control (OFAC) to complete the investigation.

But OFAC has said the amount paid to the U.S. Department of Justice and the New York County District Attorney's Office will be credited towards satisfying any penalty it imposes, Lloyds said. "Accordingly, Lloyds Banking Group does not believe there will be any payment to OFAC as a result of any resolution and does not anticipate any further enforcement actions following this settlement," it said in a statement. Swiss rival Credit Suisse (CSGN.VX) on Tuesday said it expected to pay $536 million to settle a U.S. probe into its dealings connected with Iran.