HSBC: Protected by DOJ and UK Chancellor, and blew the whistle on Spitzer’s prosecution scandal


The report claims:
The UK’s Financial Services Authority “hampered” an official investigation into money laundering allegations against banking giant HSBC and UK Chancellor George Osborne sought to influence the inquiry to prevent prosecution. US officials claimed that they were concerned it might cause a global financial disaster – but this is not believable.

Kindergarten level logic shows that between the two extreme positions – doing next to nothing (what happened) and closing the bank down – there were millions of alternatives which would give a measure of justice while protecting the legitimate financial system.

Despite its overwhelming criminality, HSBC had the gall to have New York Attorney General Eliot Spitzer forced out of office after it reported three transactions totalling $10,000 in 2007. Spitzer had prosecuted many criminal banks. HSBC’s criminal Statement of Facts states :

….. HSBC Bank USA processed over 100 million wire transfers totaling over $300 trillion. Over two-thirds of these transactions involved customers in standard or medium risk countries. Therefore, in this four-year period alone, over $200 trillion in wire transfers were not reviewed ….

How and why did HSBC isolate 3 small transactions by a criminal bank opponent – when it had established a system which ignored 67 million others totalling over $200 trillion? The logical explanation is that there was some type of tip-off or trade-off.

HSBC’s 2012 settlement detailed how Mexico’s Sinaloa drug cartel and Colombia’s Norte del Valle cartel laundered $881m through HSBC and a Mexican unit, and how the bank violated US sanction laws by doing business with customers in Iran, Libya, Sudan, Burma and Cuba.

On a a side note: HSBC, J.P. Morgan Chase and Wells Fargo filed a lawsuit to stop then NY Attorney General Eliot Spitzer from looking at lending data in 2005.  Spitzer subpoenaed the banks to obtained data about their then predatory mortgage lending practices to low-income borrowers.

2 responses to “HSBC: Protected by DOJ and UK Chancellor, and blew the whistle on Spitzer’s prosecution scandal

  1. Can’t wait for the release of sealed HSBC-DOJ agreement to the public in the Dean Moore lawsuit. Currently, DOJ and HSBC are appealing as they don’t want the agreement to be released to the public as the judge ordered.

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