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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsToo Big to Jail: Big Banks Can Finance Terrorists and Walk Away Scot-Free
http://www.alternet.org/economy/too-big-jail-big-banks-can-finance-terrorists-and-walk-away-scot-freeAsia-focused bank HSBC said on Tuesday it would pay US authorities a record $1.92 billion to settle allegations of money laundering that were said to have helped Mexican drug cartels, terrorists and Iran.
The New York Times reports this week that megabank HSBC has escaped criminal prosecution for money laundering that probably funded terrorists and narcotics traffickers. Why? Because regulators and prosecutors were petrified that an indictment would undermine the entire financial system. The Times quotes anonymous government sources who confessed fears about bringing formal charges because doing so would be a "death sentence" for the bank. So they let it off the hook.
Thats right, HSBC is officially above the law. Too-big-to-fail has become too-big-to-prosecute.
A year-long investigation found that the British banking giant had blown right past federal laws by laundering billions of dollars from Mexican drug trafficking and processing banned transactions on behalf of Iran, Libya, Sudan and Burma. A Wednesday Times article serves up vivid passages about the shady goings-on, including HSBC officials working closely with Saudi Arabian banks linked to terrorist organizations. According to the report, "the four-count criminal information filed in the court charged HSBC with failure to maintain an effective anti-money laundering program, to conduct due diligence on its foreign correpsondent affiliates and for violating sanctions and the Trading With the Enemy Act."
In a statement, the bank said it will acknowledge that, in the past, we have sometimes failed to meet the standards that regulators and customers expect. HSBC apologized and promised never, ever to do it again, scouts honor.
marmar
(77,084 posts)...... the banksters still haven't, and sadly won't, be held accountable.
xchrom
(108,903 posts)4_TN_TITANS
(2,977 posts)with a $250,000 fine for the company if I shipped the smallest trinket of high alloy (titanium, zirc, etc.) to Iran, much less laundering who-knows-how-much money for them.
I've about had it with immunity for the banksters but hell to pay for the rest of us. Holder is about as useful as the dried dog shit I found on my shoe this morning.
atreides1
(16,084 posts)The dried dog shit could be used as fertilizer...which makes it much more useful then Holder will ever be!
ancianita
(36,110 posts)in our economy that doing so would "hurt" too many others, it's not just a dark day for law and order, as the NYT says. In a secretive, criminal, treasonous, bread and circus, society where an entire class is above the law, what is good, beautiful and true is subversive, and true patriots are beaten, harassed and jailed.
We are a scofflaw banking system and a dictatorial military regime. We have to face that bankers are a criminal class and Ayn Rand has won. Then act accordingly.
OldDem2012
(3,526 posts)....frozen their funds first, and then dropped a laser-guided bomb on the bank HQ along with every single one of the bank's branch locations.
Octafish
(55,745 posts)Gee, that must ready hurt.
http://www.democraticunderground.com/10021963678
atreides1
(16,084 posts)The bank's shareholders will be footing the bill, not those who are responsible...no money from the pockets of those who made the decisions to aide and abet terrorists and drug cartels!
AgingAmerican
(12,958 posts)Florida GOP governor Rick Scott's medical company was found guilty of 17 felonies defrauding Medicare of $1.7 Billion - and fined over $600 million, the largest fraud settlement in US history. That's over a billion in profit.
Lefty Thinker
(96 posts)They sit in a cell, their time and wages fully controlled by the government. I think that a guilty plea or verdict for a corporation should lead to a period where the corporation's profit-per-hour is not allowed to exceed that of the highest incarcerated inmate, the difference going to the jurisdiction administering justice in the case. The government would also appoint a trustee to oversee the Board of directors for the period of the punishment, whose job is to prevent any Board action to defer profit and reverse any Board policies specifically aimed at preemptively minimizing the effect of the sentence.
I think this approach punishes those ultimately responsible: the shareholders. Large shareholders have a responsibility to make sure the corporation is acting rightly. Small shareholders should get out of their position if the company behaves badly.
atreides1
(16,084 posts)Shareholders don't make day to day operating decisions...besides this "fine" will be coming out of what the shareholders would be getting...the deciders don't pay a dime for the crimes they committed...so in a way the shareholders are being punished!
rhett o rick
(55,981 posts)AgingAmerican
(12,958 posts)rhett o rick
(55,981 posts)midnight
(26,624 posts)drugs walk around free?
bullwinkle428
(20,629 posts)was busted back in the 80s (during the REAGAN ADMINISTRATION), every other Wall St. exec was hiding under their desk literally cowering in terror with the thought of becoming the next "most hated man in America"!
K&R.
WillyT
(72,631 posts)blackspade
(10,056 posts)And suffer no consequences from their law breaking.
Just like the super rich and their rethug lackeys.
Swell.
Texano78704
(309 posts)that HBSC is the only bank doing money laundering for drug cartels.