Tuesday, December 11, 2012

More Good News. Really?


FYI, global mega-bank HSBC just agreed to a 1.9 BILLION dollar fine.  Now why would you pay such a huge fine?  The NY Times says it was, “to settle charges that the British banking giant transferred billions of dollars for sanctioned nations, facilitated Mexican drug cartels to launder tainted money and worked with Saudi Arabian banks with ties to terrorist organizations.

This might seem hugely significant.  Certainly the bank wants you to know that it is a different organization now, that the past mistakes will never be repeated, etc.  But ABC News says, “Announcement of the immense fine was overshadowed Tuesday by efforts to explain why, in one of the clearest cases of criminal money laundering in recent memory, no one would be facing jail time. Criminal conviction on money laundering violations would have also forcibly prevented HSBC from doing business in the United States.”

No jail time, in spite of the fact that the Mexican arm of HSBC funneled 7 billion dollars into the US over the period of time the investigation covered.  And the company won’t be barred from working in the USA, in spite of the fact they clearly should be.  Instead, they will pay the huge amount of 9% of this years profit.

Yeah.  That’ll teach ’em. 

Or maybe it will teach the whole world that if you have enough cash, you can do pretty much whatever you want, including flaunting US law.  Maybe instead, it teaches the whole world that USA jobs at a foreign owned company are more important than the lives ruined world over by terrorists and drug lords.  Maybe it will teach the whole world that all they really need to do is slightly increase the price of selling drugs and seeding terror to offset the cost of hiding their money laundering better. 

Nah.  That’ll never happen.  BTW, HSBC shares went up when the news broke today.





No comments:

Post a Comment