In a nation that has imprisoned millions (mostly poor, mostly minorities) of people for minor drug offenses a bank that laundered billions of dollars in drug money, HSBC, has walked away with a small fine. No jail time, no charter removal, just a few weeks profit and on the game goes.
Senator Elizabeth Warren is irritated by this clear double standard for the rich and decided to let the regulators know of her displeasure in a Senate hearing.
On Thursday, the Senate held a hearing to ask federal regulators why they are not stopping banks from allowing money laundering. Sen. Elizabeth Warren (D-Mass.) was the highlight of the show, slamming a Treasury official who refused to weigh in on whether the banks should face more severe penalties…
In December, the giant international bank HSBC was fined $1.9 billion for illegally allowing millions in Mexican drug trafficking money to be laundered through its accounts. But it’s not just HSBC—this is a systemic problem. Ten banks have been penalized in recent years for failure to comply with anti-money laundering rules.
Absent from the hearing was a representative from the Justice Department run by Eric Holder who recently claimed banks like HSBC were Too Big To Jail. The regulators’ excuse for not taking more severe action against HSBC was that Holder’s Justice Department failed to move a criminal case and therefore their hands were tied. Only after a criminal conviction was secured could Treasury move to take away HSBC’s charter.
The reality is, of course, that Under Secretary for Terrorism and Financial Intelligence David Cohen has a few covert reason to be soft on HSBC having worked for the same law firm that HSBC’s current Chief Legal Officer Stuart Levey worked for – Miller, Cassidy, Larroca & Lewin LLP. One big happy family. What’s a little drug money laundering among colleagues? I am sure Mr. Cohen was dying to really punish HSBC regardless of the consequences to future career prospects.
So as the incestuous circle goes round and round and HSBC escapes justice the drug war continues. Ensnaring more of the poor and frequently non-white into the prison-industrial complex from which they will likely never escape. Destroying themselves and their families and perpetuating generations of trauma and dysfunction. What incentive do the elite have to end such a rotten the system if they have no fear of ever facing it?
Two justice system, one for the rich and one for the rest – separate and unequal. Well done Eric Holder, well done.




45 Comments

Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL News Desk
So does BSbafflesbrains.
All three of the hacks being questioned by Warren appear to be card-carrying members of what Jeff Connaughton called “The Blob” in his book, The Payoff.
Matt Taibbi:
But The Blob is not just on Capitol Hill, it has metastasized to all three branches.
So your saying there are STILL three branches? It doesn’t show.
Of course, what do you expect. Brown and black people were created for the elite to point to as scapegoats for crime. Somebody has to be punished harshly in this culture and what better reason than being a darker hue than Stuart Gulliver.
Sell an ounce of coke-go to jail.
Launder almost a billion dollars in drug money-pay a relatively small fine and make a profit.
Isn’t the reason we have a drug war so banks can inflate their profits?
Laundering drug money is tax free profit as well. So it’s win/win.
Well, they are diversified. Not ofen spoken about but the Fed keeps these fuckers well stocked with profits as well.
Even for 9/11 Hijackers.
The Sleaze Weasel sure has been getting a lot of attention this week and none of it is good.
Matt Taibbi does a great job illustrating how HSBC stands out in a very sleazy crowd of Banksters as being completely criminalized:
http://www.rollingstone.com/politics/news/gangster-bankers-too-big-to-jail-20130214
Nice diary! Rec’d
I can’t understand how you come up with two justice systems, one for the rich and one for the rest when its been plain for thirty or forty years only the defenseless and the poor get chewed up by the courts. The rest are simply never touched.
I can’t believe this ass wipe saying the banks are too big to prosecute as DW noted. How fucking entitled do these multimillonaires need to be? When is Holder leaving? Can’t be soon enough.
The MIC has made more money because of Al Queda than they ever made from former Soviet Union and since money seems to be their only value (besides a low handicap) I am not surprised to see that. Thanks for the link anyway since I’ll never get that info from the MSM.
And is it any wonder that capitalism is on the way out?
If not “jailed” today they’ll be given a blindfold and last imported cigar tomorrow.
That’s a rhetorical questio, right????
Is there a more worhtless piece of shit in the government???
OTOH, gotta put some blame on the guy who hired him, I ‘spose.
Something to be said for “tradition”. /s
If I was Elizebeth Warren, I’d get a remote starter for my car.
Just sayin’
LOL. But good advice.
There’s a part of me that thinks Elizabeth Warren’s job is to give the sheeple a little psychic satisfaction by putting on a dog and pony show with the banksters, knowing full well nothing will come of it.
Because that’s all we’re going to get out of this.
Max Keiser commented on the drug money laundering operated by the Hong Kong & Shanghai Banking Corporation (HSBC) last month on his show. He said that the only liquidity in the world’s financial markets after the 2008 crash was $150 billion in drug money.
If not for drug money there would have been no credit in the fall of 2008 – we should thank HSBC for providing this vital service.
Who hired him, Timmy Geithner and Lawrence Summers.
That remote starter for Liz is a good suggestion.
It’s very dishearteniung isn’t it. No matter what SHE says and does if Obama, Holder, and the DoJ do nothing, it IS just a dog and pony show.
That’a a helluva silver lining????
I think she’s sincere but out-numbered. If she prevails, then she’ll be the greatest national hero since Martin Luther King, Jr.
That’s what I meant by my comment @1. Who cares what anyone good wants; what can they do? I can do as much as Warren. Nothing.
I’m more than just comic relief. Just not very often.
No shit. Another win/win for the Bigs. The Wachenhuts, etc, get lotsa your tax dollah$ & mine to over incarerate mostly teh poorz minorities, and then – ta da! – pretty much FREE slave labor for their “industries.”
It’s a deliberate feature, not a glitch.
Well, to be accurate, Warren’s voice is “louder” than yours & will get more “play.” But that’s about it. Otherwise, agreed.
Nice to witness this display by Warren. But that’s about all the crumbs we’ll get from this.
What you point out is ALSO why the USG is so vitally against legalizing pot. It’s a HUGE money-maker for the spy industry. Their addiction to their illegal work fuels their need for more money, more money, more money, more money.
I would posit, thogh, that they also make money from running drugs ‘n pussy.
I suppose. It took Rand Paul thirteen hours and really really full bladder to get a simple “No” from Holder.
Better than nothing, and it lays everything out in the public record (though the way things seem to be going that record will be revised out of recognition within our lifetimes. Elizabeth who?).
and will have a similar life span.
Properly fostered, fed with an appropriate amount of publicity from the media, what Sen Warren is doing could very well inspire a growth of populism which could overwhelm “too big to fail”.
could would . . . let’s see what happens.
But for now, Warren’s on the right track.
Holder the name sure fits. That’s all he is a place holder. How do these people sleep at night knowing that they’re putting thousands in jail for life for crimes of a much lower magnititude then what HSBC’s management was doing on a daily basis for yrs. You have to wonder what the real amounts they were making from this criminal enterprise are? The 800 mil. is just what they got caught laundering.
Could it be that weed is still being prosecuted by the feds so that the banks can make more dough?
MY experience is that people without a conscience sleep just fine.
No one including Liz Warren seems to want to admit just how dependent on laundered drug money our finincial system is. Catherin Austin Fitz exposed this ingrained corruption years ago and estimated it’s value at $500+ billion a year. Much of the funding for the private prison industry was aquired from this source.
It shouldn’t be called ‘regulatory capture’ but ‘regulatory surrender’ or ‘regulatory capitulation’ all part of the iron law of oligarchy.
Empty ritual. If she were even remotely dangerous to the Apparatus, she wouldn’t be there.
Corporations are persons — persons that cannot marry, divorce, have children, suffer, take medication, or BE IMPRISONED! REAL persons go to jail for breaking the law. If the law is going to designate corporations as persons, then there should be some provision analogous to JAIL. If a parent goes to jail, does the justice system provide any relief for his dependents? A corporation, for an identified level of crime, should lose its charter. If such a penalty inflicts pain on dependents (like employees) that it too great by some reasonable determination, then IT IS TOO BIG! On the other hand, if that kind of punishment harms innocent dependents, then the law should provide for a way to identify and JAIL the corporate individuals responsible for the criminal behavior. I don’t understand why that should be too difficult to do.
Big wealthy Corps. are like rich people, not poor people, they can afford lots of lawyers and even cops, judges, Congressmen and Presidents. It used to be called corruption, today it’s called Corp. personhood.
Elizabeth Warren is a big talker. But the moment she was sworn in as a senator, the Glass-Steagall Act was somehow erased from her brain, when all we need is one senator to introduce companion legislation to HR 129, which presently has 30 co-sponsors in the house. I think Obama has Ms. Warren in some sort of hammerlock.
Read this article and the very last question – SO WHAT DO WE DO?
http://www.occupy.com/article/gangster-bankers-too-big-jail
Then check out this video… This guy is RIGHT ON!!!
http://www.youtube.com/watch?feature=player_embedded&v=maqSFuI7Uf4
This has got to stop! HSBC/HFC is my mortgage company (I hate to admit it) who has forced me into foreclosure because they wouldn’t take my money. Because of the economical nose dive our country has taken I offered to pay a lower amount until we got back on our feet. After hours of gathering paper, scraping money, getting the constant run-a-round they FINALLY gave us a 6 month loan modification and then denied a continuance. Oh, I could go on and on – I have a huge box just with the correspondence to them (some from them, all NEGATIVE). I actually had the worst feeling ever,from day ONE, when our mortgage was sold and we were referred to them. THEY ARE EVIL!