Standard Chartered said that it "ceased all new business with Iranian customers in any currency over five years ago," and that because "resolution of such matters normally proceeds through a co-ordinated approach" by the regulatory agencies, it was "therefore surprised to receive the order from the DFS." The bank was ordered to appear on August 15 before New York Superintendent of Financial Services Benjamin Lawsky to "demonstrate why SCB's license to operate in the State of New York should not be revoked," and Standard Chartered said it would "discuss these matters with the DFS and to contest their position." Trading for shares of Knight Capital Group ( KCG) settled down after several days of extreme volatility, with the shares pulling back by a penny to close at $3.06, after the Jersey City, N.J., market maker and facilitator of electronic transactions announced on Monday that a group of investors -- including Jefferies Group ( JEF), Blackstone ( BX), Getco, Stephens, Stifel Financial ( SF) and TD Ameritrade ( AMTD) -- had agreed to recapitalize the company by purchasing $400 million in preferred shares, "convertible into approximately 267 million shares of common stock of the Company," at a strike price of $1.50. The recapitalization is likely to result in the investor group taking control of 70% of Knight Capital Group's shares. KBW analyst Niamh Alexander late on Monday downgraded Knight Capital to an "Underperform" rating from a "Market Perform" rating, while lowering her price target for the shares to $2.50 from $4.00, while estimating a revised tangible book value of $3.44 per share. Alexander said the lower price target was based on "75% of the revised estimated tangible book value ," with a "wider discount to TBV than historical multiples to reflect the higher risk profile of the earnings now after two consecutive months of outsized trading losses, as well as the liquidity, dilution and risk of shareholder lawsuits." The analyst now estimates that Knight Capital Group will earn 29 cents a share in 2013, "down from $1.35, primarily on higher share count and assuming some minor loss of business and higher expenses resulting from the higher risk profile of the company." KBW estimates that Knight Capital will show a net loss of $3.14 for the third quarter, "assuming two months of additional interest expense and estimating market-making revenue of negative $300 million, taking into consideration the 62 days of trading outside of the $440 million loss in the quarter."