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HSBC to pay $1.9B to settle probe

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posted on Dec, 11 2012 @ 01:28 AM
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HSBC to pay $1.9B to settle probe


Snips from the article: Source


WASHINGTON (AP) — HSBC, the British banking giant, will pay $1.9 billion to settle a money-laundering probe by federal and state authorities in the United States, a law enforcement official said Monday.

Under what is known as a deferred prosecution agreement, the financial institution will be accused of violating the Bank Secrecy Act and the Trading With the Enemy Act.

the deferred prosecution agreement means the bank won't be prosecuted further if it meets certain conditions, such as strengthening its internal controls to prevent money laundering…

In regard to HSBC and Mexico, a U.S. Senate investigative committee reported that in 2007 and 2008 HSBC Mexico sent to the United States about $7 billion in cash…

Last summer, the Senate investigation concluded that HSBC's lax controls exposed it to money laundering and terrorist financing.

The report also blamed U.S. regulators: It said they knew the bank had a poor system to detect problems but failed to take action.

…the U.S. agency that oversees the biggest banks, tolerated HSBC's weak controls against money laundering for years

…SBC announced Monday that Robert Werner, a former head of the Treasury Department agencies responsible for sanctions against terrorist financing and money laundering, is taking a new position within HSBC as head of group financial crime compliance and group money-laundering reporting officer. Werner has been head of global standards assurance since August.


According to sources available, it appears they are not prosecuting formal laundering charges due to the enormity of the case and the ripples it will create.


State and federal authorities decided against indicting HSBC in a money-laundering case over concerns that criminal charges could jeopardize one of the world’s largest banks and ultimately destabilize the global financial system.



Source: dealtime.nytimes.com
edit on 11-12-2012 by explorer14 because: link




posted on Dec, 11 2012 @ 01:32 AM
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I find it interesting that because of the issues, the bank is in essence, given (at least a partial) a pass on criminal proceedings. Now, just let some individual or small time player(s) get caught, and well, the outcome might be basically similar to the difference in the way a white collar crime is handled vs a blue collar crime in my opnion.

About the Trading with the Enemy Act:


Persons who willfully violate any
provision of TWEA or any license, rule,
or regulation issued thereunder, and
persons who willfully violate, neglect,
or refuse to comply with any order of
the President issued in compliance
with the provisions of TWEA shall,
upon conviction, be fined…
and an officer, director, or agent
of any corporation who knowingly participates
in such violation shall, upon
conviction, be fined or imprisoned for not more
than 10 years, or both.
(2) Any property, funds, securities,
papers, or other articles or documents,
or any vessel, together with its tackle,
apparel, furniture, and equipment, concerned
in a violation of TWEA may upon conviction be forfeited to the
United States Government.


Source

You have to wonder where did all that money that came into the US end up? (Approx $7B)
edit on 11-12-2012 by explorer14 because: imo



posted on Dec, 11 2012 @ 01:35 AM
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O.I.C.

So Basically, they finally GOT someone or something worth getting, it's scared the pee out of them like puppys on the porch, and now they are whimpering off to find smaller fish to fry before someone swats them with a rolled up newspaper. Does that about cover it? Hm... I think it does.

We wouldn't want to see law enforcement actually do anything worthwhile...it might break a rule or hurt someone's feelings. Better the whole system should remain propped on rotten wood until the whole thing falls in on itself. Yeah, there's the alternative I can feel good about.
Who is it that is supposed to watch the watchers? They REALLY need some watching here lately. Maybe just fired.



posted on Dec, 11 2012 @ 01:43 AM
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Originally posted by Wrabbit2000

it's scared the pee out of them like puppys on the porch


I actually have a fond memory of my dog doing that when she was a pup.



Does that about cover it? Hm... I think it does.


Who is it that is supposed to watch the watchers? They REALLY need some watching here lately. Maybe just fired.


I think one of the articles I read eluded to entities becoming too big. I think that explanation might apply to several issues - ie corporations, political campaign funding, lobbying etc..
edit on 11-12-2012 by explorer14 because: no sir, i didn't like it



posted on Dec, 11 2012 @ 01:52 AM
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In any lesser case the parties would have had the $7B confiscated, received the fine and done jail time as well.

But they have to look after the bank.

Where did the $7B go? My guess, the CIA.

P



posted on Dec, 11 2012 @ 02:37 AM
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reply to post by explorer14
 



State and federal authorities decided against indicting HSBC in a money-laundering case over concerns that criminal charges could jeopardize one of the world’s largest banks and ultimately destabilize the global financial system.

Uh huh.... it certainly has nothing to do with the fact that they were paid off with 1.9B.


I say charge the criminals involved and give them back their damn dirty money.

Or better yet, confiscate the money as part of the investigation.
edit on 11/12/2012 by ChaoticOrder because: (no reason given)



posted on Dec, 11 2012 @ 02:59 AM
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let me guess, the united states is going to use that $7 billion and put it into drug rehabilitation and health programs.

looks like hsbc just got extorted.

the dea's total budget for 1 year is $2 billion. that leaves $5 billion for donald rumsfeld to find.



posted on Dec, 11 2012 @ 03:12 AM
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I read about this on BBC earlier today and the first thing that popped into my mind was this: how does the US charge a UK bank of violating US laws? I understand they have US subsidiaries or whatever but from what I read it was the main bank itself involved, not related entities.

Then again I have no idea about the complexities of international banks/industries but I just found it odd.



posted on Dec, 11 2012 @ 03:24 AM
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Now it's just audacious, blatant corruption. No more faffing about.
They see that people wont do anything to stop them so they just go ahead.

Forget ''trying to manipulate you'', it has already been done. The fact that the world is just sitting back and letting this happen bears testament to that.

C'mon, say it with me ''Bha-a-a-a Bhaaa''


 
Posted Via ATS Mobile: m.abovetopsecret.com
 



posted on Dec, 11 2012 @ 08:19 AM
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reply to post by explorer14
 


Recently woke up as a second-shifter, read the AP wire from London.
AP is AP, same corroded old mouthpiece... I am not surprised but a
little disappointed in the bribe. That's all it is, and nobody rich / important
gets in trouble... just give the Don his cut and sin ano more, at least
publically get caught: business as unusual.
This LIBOR thing has more strings to the funding of covert and completely
illegal and immoral actions (using the interest on the depositors' money)
than anything else out there. How could any of us with a couple of firing
brain cells left to rub together hope otherwise than the Banking Commitee
looking satisfied about it?
The fix is in, the curtain hiding The Man is solid. And the revolving door is
seen to be nicely greased too, since the well worn path between government
and banking has seen yet another high ranking expatriot. If somebody asks
you about this later on today in the States, you can give that person this
article and say "The regulator and The Man accused regularly trade places
to avoid trouble; and are both crooks."
Now to try and keep that eviction notice from taking seed for two months'
rent. See you later-- if the Sherriff's Deputy doesn't visit me first. DF



posted on Dec, 11 2012 @ 12:05 PM
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So.....HSBC is ABOVE THE LAW........this explains why not a damn thing has been done about the TWNTYFIVE TRILLION DOLLAR SCAM.....Which was revealed in the house of lords last year......
Both the FED, and HSBC have been named alon with T eithner and Bernanke as well.....
The profits on their scheme
TEN TRILLION DOLLARS!
This has been buried since the announcement..(.by Lord Sassoon, an illuminatti agent...)
The world is being raped financially by these bastards...........



posted on Dec, 11 2012 @ 12:20 PM
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Got to hate "Too big to indict".

Bottom line is that this bound to be much bigger than what has been made public. There needs to be a full inquiry made with names named or clean out the entire US Dept of Justice including Holder and Obama on covering up high crimes.



posted on Dec, 11 2012 @ 01:58 PM
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reply to post by explorer14
 


It sounds like a loophole for big banks to continue doing whatever they want. but, hey, that is what they have been doing all along....

probably they also have a way for the government to pay back that money to the bank - some grant or stimulus plan or a bailout of some sort. it is all smoke and mirrors to give us a sense of regulation, while in reality it is a close knit ring of friends and comrades



posted on Dec, 12 2012 @ 12:10 AM
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Originally posted by JohnWoodland
reply to post by explorer14
 


It sounds like a loophole for big banks to continue doing whatever they want. but, hey, that is what they have been doing all along....


I think I agree with the loophole idea, because if you look up the info for the 'Trading with the Enemy Act' there doesn't appear to be a whole lot out there. They seem to be quite benign and even somewhat vague and for something that is supposed to be law, is it me or does the language seem a little soft? Maybe THAT's the loophole!

PS: The US and the UK shared a very similarly named law - not sure about the reciprocity between them though.

sheep faffing about...



posted on Dec, 15 2012 @ 07:05 AM
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One of the aspects of this case that makes me sick is that everyone is banging on about how huge this fine is. ITS NOT.

HSBC annual income for 2011 was $106,000,000,000
HSBC fine is..................................$1,900,000,000

Fine as a perentage of income equals less than 2%. Less than a weeks income.

So if your income was $30k and you'd been caught money laundering you'd be fined less than $600 and no prison sentence.

And while we're at it how come corporations only pay tax on net income after expenses. Yet people pay tax on gross earnings. Imagine how small your tax bill would be i you got taxed after your mortgage, bills, food, entertainment costs, utilities, gas and vehicle costs, etc ad been paid.
edit on 15-12-2012 by merkins because: (no reason given)
edit on 15-12-2012 by merkins because: (no reason given)
edit on 15-12-2012 by merkins because: (no reason given)
edit on 15-12-2012 by merkins because: Trying to make the $ line up



posted on Dec, 15 2012 @ 07:23 AM
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Also as you can't put a corporation in jail so you should at least be able to give it a death sentence i.e. Shut it down and break it up.

A corporation that indulges in criminal behaviour should not be allowed to continue to exist. And all it's executives and employees involved and those that benefitted (stock options etc) should be sent to prison.

Once upon a time corporations were temporary entities that were formed for a public service purpose, then dispanded after purpose completed. I.e. To build a damn or improve local infrastructure. That would have prevented the rise of corporate power and the phenomenon of multi-generational wealth and power beyond imagination.
edit on 15-12-2012 by merkins because: Typo



posted on Dec, 15 2012 @ 09:28 AM
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It is possible all these "illegal" transactions were being done at the behest of some government agencies and when some overzealous bureaucrat discovered these "illegal" transactions, the government agencies had to protect their facilitators.



posted on Mar, 10 2013 @ 02:35 PM
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reply to post by explorer14
 


EW applying pressure...






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