NEW YORK, NY – The big global bank HSBC will pay nearly $2 billion to settle US charges it ignored the red flags pointing to money laundering for drug cartels and terrorists.
Maybe that song is right: It’s the lure of easy money, it’s got a very strong appeal.
The $1.9 billion fine is the largest ever against a bank by the US government. But not everyone thinks it was right.
“I am not here to defend any banks. This fine is actually much higher it should be,’ said Ralph Silva, director of Silva Research Network. ‘If this was a US bank, the fine would probably be half of the amount. The reason that they are fining this simply because HSBC can (A) afford it, because they are huge bank, and (B) they are not an American organization so they are not pulling $1.9 billion of the US economy. The result, they can do this.”
Oh, and then there’s reason ‘C’ which is the fact that the bank shipped 7 billion bucks, in cash, to its US affiliates, money believed tied to Mexican drug cartels and to banks linked to terrorism.
And, since we’re on the subject of money, Uncle Sam is selling the last of our shares in insurer AIG, remember, the financial giant that nearly caused the collapse of the world`s economy nearly four years ago.
American taxpayers bailed it out to the tune of $182 billion, and at one point, we owned about 92% of the firm. But now, we can kiss that baby goodbye.