Community | December 11, 2012 | 2 comments

Banking Giant HSBC Settles For $1.9 Billion Over Laundering Billions For Mexican Drug Cartels, Saudi Terrorists, And Iran

Image
misfit20
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.

While the settlement with HSBC is a major victory for the government, the case raises questions about whether certain financial institutions, having grown so large and interconnected, are too big to indict. Four years after the failure of Lehman Brothers nearly toppled the financial system, regulators are still wary that a single institution could undermine the recovery of the industry and the economy.

http://dealbook.nytimes.com/2012/12/10/hsbc-said-to-near-1-9-billion-settlement-...
  1. groups:
    Community
  2. tags:
  3.     
    |

2 comments // Banking Giant HSBC Settles For $1.9 Billion Over Laundering Billions For Mexican Drug Cartels, Saudi Terrorists, And Iran

  • Vic_Romano
  • misfit20
    • +1
      misfit20  
    • No criminal charges? I guess the prisons are too full with dangerous marijuana offenders. A slap on the wrist will suffice, as usual. And america sleeps on...

    • 5 months ago
more from Community:

top videos