And they say that white collar crime doesn’t pay…
It wasn’t enough that the European banking giant, HSBC was caught red handed laundering money for Mexican drug cartels and nations like Iran through American subsidiaries. Billions of dollars were laundered for known criminals and a country who is subject to an economic embargo. HSBC’s agreement to pay $1.92 billion to the Department of Justice (DOJ) is a tacit acknowledgement of the accusations.
An Outright Admission
The refusal to indict HSBC by state and federal regulators “over concerns that criminal charges could jeopardize one of the world’s largest banks and ultimately destabilize the global financial system” is an embarrassment to anyone who has ever sworn to uphold the laws and constitution of our United States.
The DOJ’s admission that a criminal indictment would bring down a Too Big To Fail (TBTF) financial institution and our economic system is a terrible precedent. It’s an acknowledgement of a broken system and a lack of enforcement of existing financial regulations. In the end it is shameful.
The settlement includes a deferred prosecution agreement, an accord under which HSBC pledges to implement certain measures in lieu of standard prosecution. This is the third time since 2003 that HSBC has been penalized for failures in compliance and control, Reuters reports.