According to Matt Taibbi, in his latest Rolling Stone exposé on the banking and financial industry “Too Big to Jail,” HSBC “helped to wash hundreds of millions of dollars for drug mobs, including Mexico’s Sinaloa drug cartel,” and also “moved money for organizations linked to Al Qaeda and Hezbollah, and for Russian gangsters; helped countries like Iran, the Sudan and North Korea evade sanctions.”
Yet, as outrageous as these transgressions are, the Justice Department refuses to criminally prosecute the bankers committing federal crimes right under the nose of the U.S. government.
At a press conference where the Justice Department announced a settlement between the government and HSBC, in which the bank was forced to pay $1.9 billion, but without any individual being fined or prosecuted, Assistant Attorney General Lanny Breuer had this to say:
Had the U.S. authorities decided to press criminal charges, HSBC would almost certainly have lost its banking license in the U.S., the future of the institution would have been under threat and the entire banking system would have been destabilized.
So, the lesson we’re supposed to take from that is this:
if you’re a banker you can commit federal felonies and all you have to endure is a slap on the wrist. However, if you’re in any other line of business and you commit federal felonies, all bets are off.
If you’re a medical marijuana provider, for example, the Justice Department will not just look the other way as it did for years with HSBC. Instead, you can expect the government to come after you with the full force of the law.
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