Standard Chartered Plc will pay US$340 million (S$427 million) to New York's bank regulator over transactions linked to Iran, in a speedily arranged deal likely to cheer its shareholders.
The deal with New York Superintendent of Financial Services Benjamin Lawsky still left the British bank facing a separate probe of Iran-linked transactions by other US authorities.
The deal on Tuesday capped a week of transatlantic tension and a furor over why a state agency had upstaged the other authorities.
The resolution also averted a hearing on Wednesday at which the bank had been called to demonstrate why its license to do business in New York should not be revoked.
Ian Gordon, an analyst at Investec Securities in London, said that the risk of further regulatory costs "appear sufficiently contained" to allow the bank's shares to build on a rally from their lows after Lawsky brought his case last week.
"Standard Chartered's management team have conducted themselves admirably in the face of extreme provocation," Gordon said.
The bank's shares rose 2.74 per cent to close at 1,370 pence on Tuesday, before Lawsky's announcement.
Lawsky on August 6 called Standard Chartered a "rogue institution" that had broken US sanctions on Iran, saying it hid Iran-linked transactions with a total value of US$250 billion from regulators.
Lawsky's order came like a bolt from the blue, the bank said, hitting its share price and bringing top executives hurrying back to London from vacation.
Bank of England Governor Mervyn King said that Lawsky was out of step with other US authorities.
And Standard Chartered Chief Executive Peter Sands strongly denied the allegations, saying illegal transactions totaled less than US$14 million.