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HSBC not charged due to 'market risk'
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HSBC not charged due to 'market risk'Posted:

ProfessorNobody
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HSBC avoided US money laundering charges 'because of market risk'

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US officials refused to prosecute HSBC for money laundering in 2012 because of concerns it would cause a "global financial disaster".

A US Congressional report released Monday also accused former Attorney General Eric Holder of misleading congress about the decision.

In 2012 HSBC was accused of violating US sanctions and allowing drug cartels to use its branches to launder funds.
The bank paid a $1.92bn settlement but did not face criminal charges.

No top officials at HSBC were charged with any crimes.

The Justice Department spokesman, Peter Carr, said a series of factors are considered when deciding how to resolve a case, including whether there may be "adverse consequences for innocent third parties, such as employees, customers, investors, pension holders and the public".

The report says Mr Holder ignored the recommendations of more junior staff to prosecute HSBC because of the bank's "systemic importance" to the financial markets.

"Rather than lacking adequate evidence to prove HSBC's criminal conduct, internal Treasury documents show that DOJ [Department of Justice] leadership declined to pursue [the] recommendation to prosecute HSBC because senior DOJ leaders were concerned that prosecuting the bank 'could result in a global financial disaster'," the report said.
Instead, the Department of Justice and HSBC reached a $1.92bn (£1.48bn) settlement, which some politicians criticised for being too lenient.

Testifying before Congress in 2013 Mr Holder said the size of some financial institutions can make it difficult to bring criminal charges.


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Basically, HSBC laundered money for drug cartels in 2012. This led to kidnappings, rapes, deaths, etc. It allowed the drug cartels to continue doing what they do best.
HSBC settled but cannot be charged criminally because they are such a big bank.
If they were to be charged and found guilty it could cause irreparable damage to the global economy.

This is what we mean when we say that the big banks are 'too big to fail.'
When a bank can launder drug money and essentially get away with it - aside for a small settlement in global banking terms - that is as clear an indication as we will ever get that big banks need to be broken up.

The following 4 users thanked ProfessorNobody for this useful post:

9nty (07-19-2016), NextGenUpdate (07-12-2016), Motivational (07-11-2016), Yin (07-11-2016)
#2. Posted:
M9z
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The bank itself needs to keep going, but the PEOPLE who allowed this to happen with full knowledge of it, need to be tried, prosecuted, jailed, and their position taken over by someone more qualified and honest. Honesty is what we need in large companies and corporations like this. So they need to cut out the people who were aware and perfectly okay with this happening, and replace them.

Shouldn't be that hard.
#3. Posted:
Unfulfilled
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Tought that we only have HSBC in the UK lol
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