HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » Too Big to Jail: Big Bank...

Thu Dec 13, 2012, 07:11 AM

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, 1380 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 19 replies Author Time Post
Reply Too Big to Jail: Big Banks Can Finance Terrorists and Walk Away Scot-Free (Original post)
xchrom Dec 2012 OP
marmar Dec 2012 #1
xchrom Dec 2012 #2
4_TN_TITANS Dec 2012 #3
atreides1 Dec 2012 #8
ancianita Dec 2012 #4
OldDem2012 Dec 2012 #5
Octafish Dec 2012 #6
atreides1 Dec 2012 #9
AgingAmerican Dec 2012 #11
Lefty Thinker Dec 2012 #7
atreides1 Dec 2012 #10
rhett o rick Dec 2012 #13
AgingAmerican Dec 2012 #12
rhett o rick Dec 2012 #14
midnight Dec 2012 #15
bullwinkle428 Dec 2012 #16
WillyT Dec 2012 #17
blackspade Dec 2012 #18
Texano78704 Dec 2012 #19

Response to xchrom (Original post)

Thu Dec 13, 2012, 08:28 AM

1. This should go rec'ed, and not unkicked.....


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


Reply to this post

Back to top Alert abuse Link here Permalink


Response to marmar (Reply #1)

Thu Dec 13, 2012, 08:30 AM

2. it's hard to argue that it's not them rather than governments who run the show. nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to xchrom (Original post)

Thu Dec 13, 2012, 08:32 AM

3. What bullshit... You better believe I'd be in jail

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to 4_TN_TITANS (Reply #3)

Thu Dec 13, 2012, 08:53 AM

8. I disagree

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

Reply to this post

Back to top Alert abuse Link here Permalink


Response to xchrom (Original post)

Thu Dec 13, 2012, 08:37 AM

4. When the Dept of Injustice won't send criminals to jail because their network is so embedded

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to xchrom (Original post)

Thu Dec 13, 2012, 08:47 AM

5. If the bank was located in a country we deemed as supporting terrorism, we would have....

....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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to xchrom (Original post)

Thu Dec 13, 2012, 08:48 AM

6. HSBC 2011 profit = $22 Billion; MONEY LAUNDERING fine = $2 Billion

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Octafish (Reply #6)

Thu Dec 13, 2012, 08:55 AM

9. Doesn't matter

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!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Octafish (Reply #6)

Thu Dec 13, 2012, 08:59 AM

11. Its the new right wing business model

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to xchrom (Original post)

Thu Dec 13, 2012, 08:51 AM

7. When an actual person commits such a crime they are jailed

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Lefty Thinker (Reply #7)

Thu Dec 13, 2012, 08:58 AM

10. How are the shareholders responsible?

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!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Lefty Thinker (Reply #7)

Thu Dec 13, 2012, 09:05 AM

13. You dont understand corporations are not people....oh wait. Maybe I dont understand. nm

Reply to this post

Back to top Alert abuse Link here Permalink


Response to xchrom (Original post)

Thu Dec 13, 2012, 09:01 AM

12. Iceland jailed it's bankers, and the politicians that enabled them

Reply to this post

Back to top Alert abuse Link here Permalink


Response to xchrom (Original post)

Thu Dec 13, 2012, 09:05 AM

14. If anyone thinks that this is the only bank doing this, I have a bridge to sell you in Brooklyn. nm

Reply to this post

Back to top Alert abuse Link here Permalink


Response to xchrom (Original post)

Thu Dec 13, 2012, 09:06 AM

15. We place pregnant mothers in prison for traffic violations, yet bankers who lauder money for war and

drugs walk around free?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to xchrom (Original post)

Thu Dec 13, 2012, 09:34 AM

16. NPR actually did a good piece on this today - pointed out how when Michael Milken

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.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to xchrom (Original post)

Thu Dec 13, 2012, 10:02 AM

17. K & R !!!




Reply to this post

Back to top Alert abuse Link here Permalink


Response to xchrom (Original post)

Thu Dec 13, 2012, 12:25 PM

18. So Corps are people, just super duper important ones that can't be bothered to follow the law.

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

Swell.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to xchrom (Original post)

Thu Dec 13, 2012, 12:30 PM

19. I find it hard to believe

that HBSC is the only bank doing money laundering for drug cartels.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread