Posted in Financial

Bill Black: HSBC Violates its Sweetheart Deal and Lynch Praises It – New Economic Perspectives

I just have one question for the Obama administration – why are these banks allowed to blatantly break the law and get away with it?  HSBC has a pattern and practice of thumbing its nose at the laws of this country.  And HSBC is not the only bank that has done this.

HSBC got a sweetheart deal from the Obama administration.  It laundered vast amounts of money for Mexico’s murderous Sinaloa cartel, helped bust sanctions for terrorists and mass murderers, and did not cooperate with the investigation.  The U.S. Attorney in charge of the case, Loretta Lynch, refused to prosecute any of the HSBC bankers or even sue them individually.  Instead, there was a pathetic non-prosecution agreement limited to HSBC.  Lynch is accused of not contacting either of the primary whistleblowers in the case.  The failure to contact one of the whistleblowers has already blown up in Lynch’s face as it became public a few months ago that the governments of the U.S. and Europe were provided many years ago with data on HSBC’s Swiss affiliate that show it was helping terrorists, genocidal leaders, the most violent drug gangs, and tens of thousands of wealthy people evade taxes.  Lynch failed to bring that case or use any of the invaluable data provided by the whistleblower who copied the files from the Swiss bank.

Now comes word that, like Standard Chartered, HSBC is failing to abide even by the pathetic sweetheart deal Lynch gifted HSBC’s criminal managers with.  In the case of Standard Chartered, NY authorities came down on Standard Chartered with at least one foot on the neck.  Lynch is made of considerably less stern stuff.  She failed even to do the most obvious move of extending the agreement with HSBC.  The New York Times tells the tale in DealBook’s trademark incoherent fashion.

via HSBC Violates its Sweetheart Deal and Lynch Praises It – New Economic Perspectives.

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