Quantcast
Feeds: Email, RSS & Twitter

Get Our Videos By Email

Powered by Squarespace

 

 

Search The Daily Bail Archive Of 15,000 Videos

SEARCH THE DAILY BAIL

SPONSORED BY  

 

Hank Paulson Is A Criminal - Pass It On

Bernanke's Failures Caught On Tape

"The Federal Reserve Is A Ponzi Scheme"


Get Our Videos By Email

THE FED UNDER FIRE: Must See Clip

Bernanke's Replacement: Happy Hour In Santa Cruz

Must See: National Debt Road Trip

"Of Course We're Not Going To  Payback the Chinese."

Dave Chappelle On White Collar Crime

Carlin: Wall Street Owns Washington

SLIDESHOW - The 11 States Most Likely to Go Bust

SLIDESHOW - 7 Really Big Holes - Don't Miss #7

SLIDESHOW - Molotov Cocktails In Greece

SLIDESHOW - The Sights, Sounds & Women of Texas

SLIDESHOW - Genius Signs From Irish IMF Protest

SLIDESHOW - Egyptian Revolution - Graphic PICS

SLIDESHOW - U.K. Student Riots

SLIDESHOW - Airport Security Cartoons - TSA

Most Recent Comments
Cartoons & Photos
SEARCH
« Matt Taibbi: 'Moynihan Perfects The Art Of I Can't Recall' | Main | Jefferies Announces Immediate ALL CASH Bonuses »
Tuesday
Dec112012

HSBC: Preferred Bank Of Drug Cartels & Money Launderers

Why no criminal charges in HSBC case?

Excellent report from tonight's CBS national news broadcast.

---

(CBS News) As bank slogans go, they don't come worse than this: "The preferred financial institution of drug cartels and money launderers."

That's a quote Tuesday in a U.S. Department of Justice report about HSBC Holdings, one of the largest banks in the world.  To avoid criminal prosecution, HSBC admitted Tuesday that it laundered more than $800 million for Mexican drug cartels, and covered up illegal transactions for Burma, Iran, Sudan, Cuba, and Libya.

The British bank will pay $1.9 billion to the U.S. government, the largest such fine in history.

It's a case that has everything -- everything accept an arrest.  That struck some as odd, because in 80 pages of court documents, the bank admits to almost going out of its way to act as a financial clearing house for international pariahs and drug dealers.

Assistant Attorney General Lanny Breuer said: "HSBC is paying a heavy price for its conduct, and under the terms of today's agreement, if the bank fails to comply with the agreement in any way, any way at all, we reserve the right as the government to fully prosecute it."

Under the terms of Tuesday's settlement, nobody at HSBC will face criminal charges.

Notre Dame professor Jimmy Gurule, who investigated money-laundering cases for the Treasury Department, said: "We're not talking about mere negligence. We're talking about a criminal scheme that was adopted as a policy of HSBC that involved looking the other way in regard to suspicious transactions involving money laundering."

Some would say that the message is, if you break all the laws you can, until you get caught, you may have to pay a lot of money, but you're not gonna go to jail.

U.S Attorney Lynch, who is one of the architects of Tuesday's settlement, disputed that idea, and said: "That's a very short-sighted view, I think, because in this case they're obviously paying a great deal of money, but they also have to literally had to turn their company inside out.  And the message should be that that's what you have to do."

As for the lack of criminal prosecutions, the feds said that they never found one bank official, or any collection of bank officials acting together, that were doing this on purpose.  They painted a picture of a disorganized bank that was collecting all these fees either not knowing, or not wanting to know where it all came from.

 

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (15)

They fired the guys and took their bonuses. I guess the tellers who were taking the money through the drive ins were too scared to say anything and I am certain that all the camera footage with all these transactions have all gone upside down. WTF? Meanwhile, I get a son of bitch speeding ticket going 10 over the posted speed limit taken by a camera and signed off on by Fred Milquetoast and have to pay a fine to Montgomery County. I guess folks, there is nothing that even resembles equity and fairness and all these guys do is have a big chucklefest on our behalf. Just godamnit.
Dec 11, 2012 at 11:15 PM | Unregistered CommenterSKINFLINT
Corporations are people, put the entire company in prison, right down to the tellers.
Dec 12, 2012 at 2:45 AM | Unregistered CommenterRSBL
Our justice system should be immediately arrested and brought up on charges.
Dec 12, 2012 at 5:20 AM | Unregistered Commenterchiller
that is why they mock the goy and call it a CRIMINAL JUSTICE "SYSTEM"....HA HA

DUE PROCESS....you're all Palestinians...NOW.

wanna a cure...KNOW THE TRUTH

http://kennysideshow.blogspot.com/2012/12/chicken-feed.html

how about the chicken feed HUSH money Dick Armey took, to ....go away...?

oh yeah....DOV ZAKHEIM

those braindeadgoy just beg to be plundered....they are so deliberately STOOOOOPID....by CHOICE

Jesus was "Jewish"

what's in your wallet
Dec 12, 2012 at 7:07 AM | Unregistered CommenterAnthony Clifton
Lanny Breuer: "if the bank fails to comply with the agreement in any way, any way at all, we reserve the right as the government to fully prosecute it."

This is ridiculous.

First, if the DOJ won't prosecute HSBC for money laundering, why on earth would anyone believe that the DOJ would prosecute it for breaching an agreement not to launder money? Can the DOJ point to even one prosecution. Grow a set of balls, Breuer, and tell the people what's really going on here: you're handing out get-out-of jail cards for free to your criminal banker buddies.

Let's be honest here. Breuer's entire rationale for not prosecuting big banks is that doing so will destabilize the financial system. And yet his claim here is just the opposite: that he WILL prosecute HSBC if they break the law again.

So which statement is a lie, Lanny Breuer? That prosecution will destabilize the financial system? Or that you will prosecute? They both can't be true.

Second, the government has a rich history of NOT prosecuting recidivists, even when they're in clear breach of an agreement not to engage in specified behavior. The S.E.C., for instance, settles its cases just like the DOJ does: with a fine and an agreed sin-no-more injunction. However, a "New York Times analysis of enforcement actions during the last 15 years found at least 51 cases in which 19 Wall Street firms had broken antifraud laws they had agreed never to breach again."

The DOJ, along with its non-prosecution agreements, is a total farce.
Dec 12, 2012 at 10:30 AM | Registered CommenterCheyenne
http://topics.nytimes.com/top/reference/timestopics/organizations/s/securities_and_exchange_commission/index.html

Link to NYT quote above.

Also, here's what Jonathan Weil says:

"Too big to fail has turned equal justice under the law into a mockery."

http://www.bloomberg.com/news/2012-12-11/why-didn-t-anyone-get-pinched-at-hsbc-.html
Dec 12, 2012 at 10:32 AM | Registered CommenterCheyenne
Cheyenne

Bill Black chimes in on HSBC non-prosecution.

http://www.npr.org/templates/story/story.php?storyId=166941155

Includes more quotes from Breuer as well.
Dec 12, 2012 at 10:47 AM | Registered CommenterDailyBail
Interesting series of quotes from the NPR piece:

"Court documents showed that the bank let over $200 trillion between 2006 and 2009 slip through relatively unmonitored, including more than $670 billion in wire transfers from HSBC Mexico, making it a favorite of drug cartels and money launderers."

"In July, a Senate subcommittee on investigations criticized HSBC for lax controls that allowed money laundering."

So HSBC executves were aware of the likelihood that their bank laundered drug money, and yet the nation's top law enforcer concludes:

Breuer "said no criminal charges would be brought unless it could be proved that executives purposely tried to let criminal organizations launder money."

In other words, Breuer's message to bank executives is that even when you know your bank is committing crimes involving trillions of dollars, just put your head in the sand and everything will be cool.

And when specifically confronted with an out-of-control bank funneling trillions of dollars into drug deals, Breuer concludes: "Our goal is not to bring HSBC down."

That's our Justice Department: we've let the drug dealers get so big that now we're just going to let them run amok.
Dec 12, 2012 at 11:10 AM | Registered CommenterCheyenne
Chiller you win Best Comment on the article award in my opinion! It's obama's DOJ that should be bringing prosecutions but doesn't!

Five Senior Goldman Sachs Execs Gave $130K To 'Obama Victory Fund' WHILE Eric Holder Was Deciding Whether To File Criminal Charges

http://dailybail.com/home/convicted-bush-1300-clinton-1000-obama-00.html

HSBC Report Should Result in Prosecutions, Not Just Fines, Say Critics

http://www.thedailybeast.com/articles/2012/07/18/hsbc-report-should-result-in-prosecutions-not-just-fines-say-critics.html
Dec 12, 2012 at 1:10 PM | Unregistered CommenterLadyLiberty
Flashback:

Drug money saved banks in global crisis, claims UN advisor

http://www.guardian.co.uk/global/2009/dec/13/drug-money-banks-saved-un-cfief-claims

[snip]

Drugs money worth billions of dollars kept the financial system afloat at the height of the global crisis, the United Nations' drugs and crime tsar has told the Observer.

Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organised crime were "the only liquid investment capital" available to some banks on the brink of collapse last year. He said that a majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result.

This will raise questions about crime's influence on the economic system at times of crisis. It will also prompt further examination of the banking sector as world leaders, including Barack Obama and Gordon Brown, call for new International Monetary Fund regulations. Speaking from his office in Vienna, Costa said evidence that illegal money was being absorbed into the financial system was first drawn to his attention by intelligence agencies and prosecutors around 18 months ago. "In many instances, the money from drugs was the only liquid investment capital. In the second half of 2008, liquidity was the banking system's main problem and hence liquid capital became an important factor," he said.

Some of the evidence put before his office indicated that gang money was used to save some banks from collapse when lending seized up, he said.

"Inter-bank loans were funded by money that originated from the drugs trade and other illegal activities... There were signs that some banks were rescued that way." Costa declined to identify countries or banks that may have received any drugs money, saying that would be inappropriate because his office is supposed to address the problem, not apportion blame. But he said the money is now a part of the official system and had been effectively laundered.


Stay tuned...
Feb 16, 2013 at 4:47 PM | Unregistered Commenterjohn
What Cocaine Trafficking Says About Emerging Market Opportunities

http://investorplace.com/2011/09/what-cocaine-trafficking-says-about-emerging-market-opportunities/

[snip]

The IMF recently did a study on Peruvian cocaine production that confirmed what everyone already instinctively knew: illegal drugs make a lot of money for the organizations that traffic and sell them. The illicit cocaine trade, like most mafia activities, enjoys profit margins that are far higher than what can be found in virtually any legal industry for several very obvious reasons:
Feb 16, 2013 at 5:51 PM | Registered CommenterJohn
DYNAMICS OF THE ROMANIAN ILLEGAL DRUG MARKETS

http://www.cse.uaic.ro/WorkingPapers/articles/CESWP2011_III2_CAU.pdf

[snip]

Abstract: Globalization has led to an increase in commercial activities running on the illegal markets, its dynamics being largely determined by the balance between profitability and the major risks involved. Revenues are significant, one example being those obtained from drug industry. In recent years, illicit drug trafficking has seen in Romania an unprecedented escalation, as a result of market liberalization and the movement of per sons and because of the extending the phenomenon both among producers and consumers.
This article examines the size of the Romanian illegal drug markets, the countries of origin and drug transit routes, as well as the profits made by the drug trafficking networks...


In Romania, the transport of  illegal drugs takes place using the infrastructure available to private companies specializing in international freight transport (companies managed by Turkish nationals or domestic companies) and through the concealment of these activities as legitimate commercial transactions (for instance the export of oil products or perishable food).
Feb 16, 2013 at 5:55 PM | Registered CommenterJohn
5 Outrageous Revelations from Matt Taibbi's Takedown on HSBC's Drug Money Laundering
In the latest issue of Rolling Stone, Taibbi takes on the most criminal bank yet.

http://www.alternet.org/news-amp-politics/5-outrageous-revelations-matt-taibbis-takedown-hsbcs-drug-money-laundering
Feb 16, 2013 at 9:00 PM | Unregistered Commenterjohn
Daily: Company suspected of criminal gang ties in anti-drug police bribery case

The company involved in a bribery case being brought against Jari Aarnio, head of the Helsinki police drug squad, is suspected of ties to a notorious criminal group in Finland, reports the daily Helsingin Sanomat Sunday.

http://yle.fi/uutiset/daily_company_suspected_of_criminal_gang_ties_in_anti-drug_police_bribery_case/6938502

[snip]

The mainstream daily Helsingin Sanomat reported that the equipment supplier Trevoc is partly owned by an investment company established by a close relative of the ringleader of the United Brotherhood crime gang.

According to the daily, Trevoc sold surveillance equipment to the police, and is partly owned by an investment company set up by the sister of the head of the United Brotherhood.

The daily also reported that the head of the crime group had also maintained a close relationship with accused anti-drug chief Jari Aarnio for a number of years.

The Helsinki District Court took Aarnio and three other men into custody on suspicion of accepting bribes and a conflict of interest. One of the detainees is a petty officer in the Finnish Security Police, Supo.


-------------------------------------

Here is what Trevoc does in the US and is incorporated in Delaware.

http://macico.com/consortium/


Trevoc is a Finnish professional intelligence gathering and surveillance solutions provider for homeland security market in Europe and US.
Trevoc products are in constant use in the professional law enforcement segment, providing users smooth and secure flow of information from various hostile environments. Cost effective and secure surveillance information helps law enforcement agencies (LEA)and intelligence organizations to project force in places and events which matters the most.
Many of the Trevoc employees have served in law enforcement or the intelligence segment for decades, enabling Trevoc to combine cutting edge technology and solid operative experience. Clients of the company include LEAs, intelligence agencies as well as other professional organizations.
Dec 27, 2013 at 11:47 AM | Unregistered Commenterjohn
John, Here is to hoping you have your power back in your home. Seeing reports that they have been slow to get things running up there in Maine. Take Care.
Dec 30, 2013 at 8:38 AM | Unregistered Commenterskinflint

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
All HTML will be escaped. Hyperlinks will be created for URLs automatically.