Thread: How Too-Big-To-Jail HSBC wriggled out of money laundering indictments

"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.
Instead, HSBC announced on Tuesday that it had agreed to a record $1.92 billion settlement with authorities. The bank, which is based in Britain, faces accusations that it transferred billions of dollars for nations like Iran and enabled Mexican drug cartels to move money illegally through its American subsidiaries."
The Times story spells it out:

"The case raises questions about whether certain financial institutions, having grown so large and interconnected, are too big to indict."

Neat little trick that: set up some dodgy little Mexican operation, but then tie it back into Head Office through a series of reversed inter-related company holdings.

HSBC Latin America Holdings (UK) Ltd has its address at 8 Canada Square, London, E14 5HQ, and on 5th April 2012, a gentleman called Sandy Flockhart retired as an Executive Director of HSBC Holdings plc, with effect from 30 April 2012, after a career spanning 37 years. He will be retained on the Board as a non-executive Director in order for the Board to retain access to his extensive international experience. Sandy will also retain his positions as Chairman of HSBC Bank plc, the Group's principal UK and European subsidiary, as Chairman of HSBC Latin America Holdings (UK) Limited and as a Director of HSBC Bank Middle East Ltd.

Now, call me old fashioned, but a UK registered company that has as its Chief Executive a man who is still chairman of HSBC Bank plc, and which has its address in Canada Square, and which owns a Mexican bank 99.99%, might just possibly be thought to be subject to FSA oversight, and moral suasion.

"In America they considered HSBC too big to jail because of fears of blowing up the financial system. In Tax Haven UK they considered HSBC too big to jail for simpler, more timeless reasons. Because, well, er . . . . we love the dirty money."

From:
http://taxjustice.blogspot.com/2012/...ggled-out.html

Referencing

There aren't words!!!! outrageous!