Description: The article is about hsbc login. The US government recently hit Europe’s largest bank with the biggest anti-money laundering fine in history for 1.9 billion dollars along with deferred prosecution,partially docked and a monitoring overhaul.
I’m Ben,that’s Matt behind our new camera,they don’t want you to know. Somebody does force in this office and spoiler alert we’re going to try to make it so that you can meet them at some point. It’s a ghost town,it is the week before Christmas,we want to get one last little piece of information out. That is the huge find that HSBC,the British-based International Bank has been ordered to pay the United States government 1.9 billion dollars.
1.9 billion is a lot of money,it is U.S. dollars not Zimbabwe dollars,that’s a lot of money. The Department of Justice is proud of this,they say that it sends a strong message to other banks or other organizations and activists or people who are not on the same page with the DOJ,they are saying that this is a huge slap in the wrist.
Some journalists are saying this proves the United States has a two-tier justice system. Why is that? What we’ll do is that we’ll answer some facts about what HSBC has been accused of,we want to talk some interesting facts about how this came to light and then close in with what this may or may not mean for the future.
First,let’s deal with the numbers. This is about 1.9 billion dollars. Matt and I work very well but we don’t make a 1.5 billion dollars. How much money is that to HSBC? Over 2011,HSBC made about sixteen point eight in dollars in pre-tax or net income. This 1.9 billion dollar fine by way of comparison is a little bit more than half of the 3.5 billion dollars they made in Q3.
Q1 and Q2 are all the other business,those are quarters 75% of the company’s activity in 2011. They are not adversely affected,there’s another question which is how much revenue or profit did this illegal business generate for the company.
What is HSBC accused of doing? They are accused of money laundering for drug lords and terrorists. There are solid evidence saying that this happened or officials knew about it or willfully ignored it or willfully advocated for it.
Specifically HSBC,was allowing money laundering from the Sinaloa cartel in Colombia through their banks in Mexico at the very least. You can read some amazing stories about how cartels were not only laundering money but they were building boxes to push cash through and these boxes were the exact specifications of the teller window.
We have no idea,I’m pantomime Ian’s making the last part up but the point was it’s a lot of drug money,HSBC knew about it,the Department of Justice knew about it,the Senate knew about it,nobody’s going to jail,there is not one person is going to jail.
There is a funny story going on HSBC. There’s also solid evidence proving that they were allowing money laundering activities in Saudi Arabia with groups affiliated with terrorists. HSBC was doing that,it was totally doing that and no one’s going to jail.
There’s a good question for people who would say this is a huge fine,this is a victory for the Senate,this is a victory for banking regulation. That is definitely one viewpoint and it is true that in a lot of white-collar high-level corporate,the crimes are difficult to find out. It’s difficult to find out who should be prosecuted as an individual on a criminal basis for something a company does.
This is a legislative question that still hasn’t been answered and it’s still hotly debated. However let’s not forget that as Matt Taibbi said in Rolling Stone,this happened in a country where people are going to jail for life if they have repeat possession of certain drugs.
These are the same drugs that HSBC was also profiting off of,they are immensely profiting billions,there are a couple of other wrinkles to the case that you might not have heard about,we’d like to tell you about them. There are a couple of fascinating things about this HSBC case that might not make it to your local news story.
First,this is not the first time HSBC has been caught with the hand in the cookie jar for money laundering wise. It happened once in 2003,it happened again in 2010,this is the third strike. There’s not a third strike law for a bank.
This information came to the public through a brave whistleblower named John Cruz,John Cruz had his position terminated,he submitted more than 1,000 pages of documents showing that people in the bank they’re turning a blind eye to,the drug money and the terrorist affiliated money.
It all goes in the bank account the same way. I don’t know if they’re watching this. With this in mind,we begin to see why this decision is controversial. It’s a lot of money and and to be fair it’s not a one point nine billion dollar fine,additionally the executives will have to defer some parts of their bonuses during the five-year deferred prosecution.
That’s the further prosecution. The shake of the finger means you are going to get in trouble if you do this again. It is a warning sign,we’re being a little bit humorous about this,but these are the facts and there’s another thing. There’s going to be an overhaul of the bank’s internal regulation and monitoring service,there has been an agreement for an independent monitor to come in over this period.
People are asking a question. Why street-level drug crimes or low-level money-laundering offenses will be punished by years in jail and fines in typical prosecution in the United States,whereas for money-laundering at a bank level,there is a fine that is a little bit over half with one quarter of a banks’ yearly net income and no criminal prosecutions.
This debate is ongoing and we’re going to see what happens with the rest of it. But for now it is safe to say that it is difficult to find an individual responsible for the actions of a company or the group of individuals. What is becoming clear is that the justice system in the United States is maybe not a playing field as our politicians and our voters like to pretend.
That’s a lot of information. There could be a bit of a bias on our part,to be absolutely fair,what the Department of Justice and the Senate said in the United States about this case is true,it is the largest prosecution,we can only hope it sends a strong message.
It can be difficult to attribute the the violations of a large corporation to a single individual or group of individuals,let’s be completely fair,let’s also point out that this story’s by no means finished. We’ve got loads of stuff on this,we would love to do an episode in our original series.
Our original series is coming out on Wednesday. This Friday on our original series,we have a surprise for you,we hope you like it. Our podcast friends have a real-life TV show coming out in January and we made an audition tape for this,it’s nothing like our usual episodes,it’s more humorous,we’re trying to make the producers laughs. We didn’t get on the show,but we had this tape and we wanted to do something funny and cool. Thank you for sticking with us and watching our series,it means the world to us.