Trouble At Standard Chartered Only Beginning?

Carson Block, founder of Muddy Waters and renowned short seller, said that he was shorting Standard Chartered PLC (LON:STAB) (LON:STAN) back in May of last year, and it looks like the rest of the market is starting to catch up with his views. Jefferies equity analyst Joseph Dickerson has initiated coverage of Standard Chartered PLC (LON:STAB) (LON:STAN) with an Underperform rating.

“We expect Standard Chartered PLC (LON:STAB) (LON:STAN) to de-rate to 1x forward price/tangible book as revenue growth decelerates faster than expected and investors more fully appreciate the risk transformation seen over the past five years. The bank is not set up for deterioration in the credit backdrop and regulatory capital excess is thin,” Dickerson writes.

Block’s Standard Chartered short has...

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