Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

xchrom

(108,903 posts)
Thu Dec 13, 2012, 08:11 AM Dec 2012

Too 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-free


Asia-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.

That’s 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, scout’s honor.
19 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Too Big to Jail: Big Banks Can Finance Terrorists and Walk Away Scot-Free (Original Post) xchrom Dec 2012 OP
This should go rec'ed, and not unkicked..... marmar Dec 2012 #1
it's hard to argue that it's not them rather than governments who run the show. nt xchrom Dec 2012 #2
What bullshit... You better believe I'd be in jail 4_TN_TITANS Dec 2012 #3
I disagree atreides1 Dec 2012 #8
When the Dept of Injustice won't send criminals to jail because their network is so embedded ancianita Dec 2012 #4
If the bank was located in a country we deemed as supporting terrorism, we would have.... OldDem2012 Dec 2012 #5
HSBC 2011 profit = $22 Billion; MONEY LAUNDERING fine = $2 Billion Octafish Dec 2012 #6
Doesn't matter atreides1 Dec 2012 #9
Its the new right wing business model AgingAmerican Dec 2012 #11
When an actual person commits such a crime they are jailed Lefty Thinker Dec 2012 #7
How are the shareholders responsible? atreides1 Dec 2012 #10
You dont understand corporations are not people....oh wait. Maybe I dont understand. nm rhett o rick Dec 2012 #13
Iceland jailed it's bankers, and the politicians that enabled them AgingAmerican Dec 2012 #12
If anyone thinks that this is the only bank doing this, I have a bridge to sell you in Brooklyn. nm rhett o rick Dec 2012 #14
We place pregnant mothers in prison for traffic violations, yet bankers who lauder money for war and midnight Dec 2012 #15
NPR actually did a good piece on this today - pointed out how when Michael Milken bullwinkle428 Dec 2012 #16
K & R !!! WillyT Dec 2012 #17
So Corps are people, just super duper important ones that can't be bothered to follow the law. blackspade Dec 2012 #18
I find it hard to believe Texano78704 Dec 2012 #19

marmar

(77,084 posts)
1. This should go rec'ed, and not unkicked.....
Thu Dec 13, 2012, 09:28 AM
Dec 2012

...... the banksters still haven't, and sadly won't, be held accountable.


4_TN_TITANS

(2,977 posts)
3. What bullshit... You better believe I'd be in jail
Thu Dec 13, 2012, 09:32 AM
Dec 2012

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)
8. I disagree
Thu Dec 13, 2012, 09:53 AM
Dec 2012

The dried dog shit could be used as fertilizer...which makes it much more useful then Holder will ever be!

ancianita

(36,110 posts)
4. When the Dept of Injustice won't send criminals to jail because their network is so embedded
Thu Dec 13, 2012, 09:37 AM
Dec 2012

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)
5. If the bank was located in a country we deemed as supporting terrorism, we would have....
Thu Dec 13, 2012, 09:47 AM
Dec 2012

....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.

atreides1

(16,084 posts)
9. Doesn't matter
Thu Dec 13, 2012, 09:55 AM
Dec 2012

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)
11. Its the new right wing business model
Thu Dec 13, 2012, 09:59 AM
Dec 2012

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)
7. When an actual person commits such a crime they are jailed
Thu Dec 13, 2012, 09:51 AM
Dec 2012

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)
10. How are the shareholders responsible?
Thu Dec 13, 2012, 09:58 AM
Dec 2012

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)
14. If anyone thinks that this is the only bank doing this, I have a bridge to sell you in Brooklyn. nm
Thu Dec 13, 2012, 10:05 AM
Dec 2012

midnight

(26,624 posts)
15. We place pregnant mothers in prison for traffic violations, yet bankers who lauder money for war and
Thu Dec 13, 2012, 10:06 AM
Dec 2012

drugs walk around free?

bullwinkle428

(20,629 posts)
16. NPR actually did a good piece on this today - pointed out how when Michael Milken
Thu Dec 13, 2012, 10:34 AM
Dec 2012

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.

blackspade

(10,056 posts)
18. So Corps are people, just super duper important ones that can't be bothered to follow the law.
Thu Dec 13, 2012, 01:25 PM
Dec 2012

And suffer no consequences from their law breaking.
Just like the super rich and their rethug lackeys.

Swell.

Latest Discussions»General Discussion»Too Big to Jail: Big Bank...