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Fri Feb 15, 2013, 07:30 PM

Gangster Bankers: Too Big to Jail How HSBC hooked up with drug traffickers and terrorists. And got



The deal was announced quietly, just before the holidays, almost like the government was hoping people were too busy hanging stockings by the fireplace to notice. Flooring politicians, lawyers and investigators all over the world, the U.S. Justice Department granted a total walk to executives of the British-based bank HSBC for the largest drug-and-terrorism money-laundering case ever. Yes, they issued a fine – $1.9 billion, or about five weeks' profit – but they didn't extract so much as one dollar or one day in jail from any individual, despite a decade of stupefying abuses.

People may have outrage fatigue about Wall Street, and more stories about billionaire greedheads getting away with more stealing often cease to amaze. But the HSBC case went miles beyond the usual paper-pushing, keypad-punching­ sort-of crime, committed by geeks in ties, normally associated­ with Wall Street. In this case, the bank literally got away with murder – well, aiding and abetting it, anyway.



For at least half a decade, the storied British colonial banking power helped to wash hundreds of millions of dollars for drug mobs, including Mexico's Sinaloa drug cartel, suspected in tens of thousands of murders just in the past 10 years – people so totally evil, jokes former New York Attorney General Eliot Spitzer, that "they make the guys on Wall Street look good." The bank also moved money for organizations linked to Al Qaeda and Hezbollah, and for Russian gangsters; helped countries like Iran, the Sudan and North Korea evade sanctions; and, in between helping murderers and terrorists and rogue states, aided countless common tax cheats in hiding their cash.

"They violated every goddamn law in the book," says Jack Blum, an attorney and former Senate investigator who headed a major bribery investigation against Lockheed in the 1970s that led to the passage of the Foreign Corrupt Practices Act. "They took every imaginable form of illegal and illicit business."
That nobody from the bank went to jail or paid a dollar in individual fines is nothing new in this era of financial crisis. What is different about this settlement is that the Justice Department, for the first time, admitted why it decided to go soft on this particular kind of criminal. It was worried that anything more than a wrist slap for HSBC might undermine the world economy. "Had the U.S. authorities decided to press criminal charges," said Assistant Attorney General Lanny Breuer at a press conference to announce the settlement, "HSBC would almost certainly have lost its banking license in the U.S., the future of the institution would have been under threat and the entire banking system would have been destabilized."

http://www.rollingstone.com/politics/news/gangster-bankers-too-big-to-jail-20130214?print=true

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Reply Gangster Bankers: Too Big to Jail How HSBC hooked up with drug traffickers and terrorists. And got (Original post)
wilsonbooks Feb 2013 OP
bluedigger Feb 2013 #1
yurbud Feb 2013 #3
libdude Feb 2013 #2

Response to wilsonbooks (Original post)

Fri Feb 15, 2013, 07:37 PM

1. I think Lanny misspoke.

"HSBC would almost certainly have lost its banking license in the U.S., the future of the institution would have been under threat and the entire criminal banking syndicate would have been destabilized."

Much better.

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Response to bluedigger (Reply #1)

Sat Feb 16, 2013, 01:24 PM

3. has any transnational bank lost their license to do business here for drug money laundering?

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Response to wilsonbooks (Original post)

Sat Feb 16, 2013, 09:06 AM

2. The story says it all

The real criminal justice system in action. Just get caught growing pot for your own use, not for sale. The state prison systems are full of such examples. We have an unjustice system and an injustice system.

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