<table><tr><th>From:</th><th>David Stem</th></tr><tr><td>Sent:</td><td>Tuesday, September 25, 2012 9:34 AM</td></tr><tr><td>To:</td><td>Jeffrey Epstein</td></tr><tr><td>Subject:</td><td>StanChart Bank</td></tr></table>

StanChart stake? Had dinner with Chairman of StanChart with PA and can see him anytime. It says JPM is interested. Good bank for China/Asia and Africa?

September 24, 2012

Temasek reconsiders StanChart stake

Singapore investment fund Temasek has sounded out potential buyers for =ts £6bn stake in Standard Chartered, potentially reigniting talk of a =akeover of the emerging markets bank.

The fund, which is owned by the Singapore government, had been judging =uyer interest for its 18 per cent shareholding in recent months, said =eople close to the situation.

Bankers said earlier momentum for a sale fell last month as StanChart's =hares dropped 20 per cent on the day it was accused by a US regulator =f breaching US sanctions on Iran. After settling the dispute with a =340m payment, the bank's share price has rebounded.

Temasek became StanChart's biggest single shareholder six years ago, =uying out the 11.5 per cent stake of the Khoo family for a small =ndisclosed discount to its then market value of E2.3bn. The family =ad been the bank's protector since the 1980s, when it had become the =ubject of an unwelcome bid from Lloyds Bank.

StanChart, which has its headquarters in the UK but a business focus on =he emerging markets of Asia and the Middle East, is one of the few =lobally active banks to be largely unscathed by the financial crisis. =t has attracted interest from the likes of JPMorgan and Santander, =ccording to bankers. Although private discussions have taken place, =othing has come of them, largely because StanChart's robust valuation =96 its market capitalisation is £35bn — would make it hard to =wallow.

StanChart trades at a 1.4 times multiple of book value at a time when =any rivals, particularly in Europe, trade on less than half that. =nalysts said Temasek might be keen to take advantage of the relative =trength and reduce its exposure to financial services, given the =conomic uncertainty.

Bankers believe any ambition Temasek might have had to engineer a merger =etween StanChart and another of its investments, Singaporean bank DEIS, =as faded, given the complexities and regulatory hostility to big =anking mergers. Temasek has hired two western bankers — Greg Curl from Bank of America =errill Lynch and John Cryan, former finance director of Swiss bank UBS =96 to help oversee its stakes in businesses in the US and Europe. =eople close to the situation stressed that there were no live =iscussions with any potential buyer. Both Temasek and StanChart =eclined to comment.

Temasek signalled a move away from its StanChart stake a year ago when =t issued an innovative convertible bond that would convert into =tanChart shares under some circumstances.

The three-year bond, which raised more than $600m, would potentially =have nearly 1 percentage point off the fund's total stake if the =ank's shares rise beyond the prerequisite 27 per cent premium to the =hen share price of £14.29. The shares closed on Monday at £14.81.

After the row over sanctions, people close to the bank signalled an =ccelerated shake-up of its board, which was criticised by shareholders =arlier in the year. Temasek withheld support for the re-election of =xecutive directors except chief executive Peter Sands and two =on-executives.

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