One week after posting a record first-half profit for the tenth successive year, Standard Chartered has been accused of funnelling $250bn through its New York branch on behalf of Iranian clients. But the UK bank has come out fighting.

The filing yesterday from the New York State Department of Financial Services accused Standard Chartered, one of the few banks to come through the financial crisis with its reputation intact, of leaving the US "vulnerable to terrorists, weapons dealers, drug kingpins and corrupt regimes", primarily through its dealings with Iranian banks.