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Senate Throws The Book At HSBC Accusing It Of Massive "Money Laundering And Terrorist Financing", No Comment On NAR Money Laundering Yet

Tyler Durden's picture


Just because there is already an overflow of confidence in the financial system, here comes the Senate's Permanent Subcommittee On Investigations with a 340 page report detailing how HSBC "exposed the U.S. financial system to a wide array of money laundering, drug trafficking, and terrorist financing risks due to poor anti-money laundering (AML) controls." Of course, since HSBC is one of the world's largest banks, what it did was not in any way unique, and it is quite fair to say that every other bank has the same loose anti-money "laundering" provisions. What HSBC was likely most at fault for was not providing sufficient hush money to the appropriate powers in the highest US legislative administration. But at least tomorrow we will have yet another dog and pony show, accusing that HSBC did what the NAR does every single day. Because let's not forget that the National Association of Realtors lobbied for and received a waiver for anti-money laundering provision regulations: after all how else will US real estate remain at its current elevated levels if not for the drug, blood, and fraud money from various Russian, Chinese, and petrodollar kingpins, mafia bosses and otherwise rich people who need to launder their money in the US, in the process keeping Manhattan real estate in the stratosphere? But one can't possibly pursue the real truth if it just may impair the fair value of that backbone of honest, hard-working US society: still massively overpriced housing in a world in which those who need mortgages will never get them.

Here is what the NAR has to say on the topic,  courtesy of Elanus Capital Management, with their commentary:

Briefly, as I am pushing my luck, I want to note something that I feel is important for all of us to consider. Namely, that we haven’t learned a damn thing over the past few years.


In quick succession over the past two weeks I’ve read articles in both the New York Times and the Financial Times discussing the phenomenon of UHNW buying of real estate property in New York and London. The Financial Times’ article was particularly pathetic and read a bit like a IPO note in 1999. In short, the gist of the article was that real estate in London was the best thing there is to a sure thing because Russians and others are dying to get their money out of their home country. First of all, there are myriad things that bother me about such an article, but the mere fact that these folks are the source of capital flight is surely a sign that their ability to maintain such flight is surely limited. And when Russian oligarchs stop buying 200-meter yachts and £100M flats, just who is going to step in to keep the bubble going?


That noted, hat’s off to Amanda Staveley, not only can she organize SWF bailouts of British banks at ludicrous prices, she can defend the London real estate market as “a great British success story.”


For whom? For fabulously wealthy central London property owners? Well, then three cheers for Tony, Gordon and David. Public policy is doing wonders for the world’s super-rich. I wonder, was there a class at Cambridge Economic policymaking in support of rapacious asset strippers? I thought public policy was about supporting economic growth that provided jobs and opportunity to the broadest possible segment of (usually domestic) society. Has anyone reading this been to the English Midlands or Wales lately? Are there signs that the sale of Gordon House is helping increase literacy, lower crime, improve infant mortality in Birmingham? Are jobs getting created in Leeds? Frankly, I wonder if the London elites have been watching a spot too much Downton Abbey.


Alright, so it’s just a market like any other and I should accept that. And I do. But I think we should all remember, that every Ruble, Real, Renminbi and Rupee that goes into buying property abroad is a currency unit that is not getting invested in productive activity back home. Developing market elites are sending very large signals that we should be paying attention to.


In the late 1990’s Russia’s biggest export market was Cyprus. A decade later, Kazakhstan’s second largest was Bermuda. Notice a pattern? Mind you, all of this going on while BRIC funds were raking it in…


Finally, many of you reading this will undoubtedly have spent time in an international bank and been forced to sit through countless hours of “know your client” and AML training. Fascinating to note that the National Association of Realtors lobbied for and received a waiver from such regulation. That’s right, realtors actually went to the U.S. government and said: we want to be able to help foreign business oligarchs and other nefarious business people launder money through the real estate markets of the United States – and prevailed.


Here’s their official position:


"NAR supports continued efforts to combat money laundering and the financing of terrorism through the regulation of entities using a risk-based analysis. Any risk-based assessment would likely find very little risk of money laundering involving real estate agents or brokers. Regulations that would require real estate agents and brokers to adopt anti-money laundering programs may prove to be burdensome and unnecessary given the existing ML/TF regulations that already apply to United States financial institutions."


Hat’s off to the NAR – that is some serious doublespeak. My translation: We’ll support you as long as we don’t have to support you.

But back to HSBC - here is more from the WSJ:

The findings will be aired Tuesday when senior HSBC officials are scheduled to testify before a Senate subcommittee looking into the matter. In a nearly 400-page report, the subcommittee detailed a regulatory culture at the bank where some officials allegedly engaged in risky behavior in pursuit of profits.


The report said that HSBC did little to clean up operations that should have raised concerns, including its Mexico bank. That bank had a branch in the Cayman Islands with no offices or staff but held 50,000 client accounts and $2.1 billion in 2008, the report said.


The report said that HSBC did little to clean up operations that should have raised concerns, including its Mexico bank. That bank had a branch in the Cayman Islands with no offices or staff but held 50,000 client accounts and $2.1 billion in 2008, the report said.


The Mexico operation, Senate investigators allege in the report, should have been the global bank's most worrisome because it continued doing business with money-changing businesses known as "casas de cambio." These businesses were cited by U.S. authorities to be fronts for drug-cartel money laundering, and HSBC conducted business with them years after other big banks cut them off.


HSBC Mexico's top anti-money laundering official, as he prepared to leave the bank, told an official from HSBC's London compliance office in 2008 that he believed there was "a culture [of] pursuing profits and targets at all costs" and that it "was only a matter of time before the bank faced criminal sanctions," Senate investigators found.

And from the Senate:

Global banking giant HSBC and its U.S. affiliate exposed the U.S. financial system to a wide array of money laundering, drug trafficking, and terrorist financing risks due to poor anti-money laundering (AML) controls, a Senate Permanent Subcommittee on Investigations probe has found.


“In an age of international terrorism, drug violence in our streets and on our borders, and organized crime, stopping illicit money flows that support those atrocities is a national security imperative,” said Sen. Carl Levin, D-Mich., subcommittee Chairman. “HSBC used its U.S. bank as a gateway into the U.S. financial system for some HSBC affiliates around the world to provide U.S. dollar services to clients while playing fast and loose with U.S. banking rules.  Due to poor AML controls, HBUS exposed the United States to Mexican drug money, suspicious travelers cheques, bearer share corporations, and rogue jurisdictions.  The bank’s federal bank regulator, the OCC, tolerated HSBC’s weak AML system for years.  If an international bank won’t police its own affiliates to stop illicit money, the regulatory agencies should consider whether to revoke the charter of the U.S. bank being used to aid and abet that illicit money.”


The Subcommittee conducted a year-long investigation into HSBC and has detailed its findings in a 330-page report to be released at the hearing Tuesday, along with more than 100 documents, including bank records and internal emails.  The hearing, which begins at 9:30 a.m., will include testimony from HSBC officials and federal regulators.


The Subcommittee investigation focused on HSBC’s key U.S. affiliate, HSBC Bank USA, N.A., known as HBUS, which functions as the U.S. nexus for HSBC’s worldwide network.  HSBC has 7,200 offices in more than 80 countries and 2011 profits of $22 billion; HBUS has 470 branches across the United States with 4 million customers.  HBUS provides accounts to 1,200 other banks including more than 80 HSBC affiliates.  Called correspondent banking, HBUS provides these banks with U.S. dollar services, including services to move funds, exchange currencies, cash monetary instruments, and carry out other financial transactions.  Correspondent banking can become a major conduit for illicit money flows unless U.S. laws to prevent money laundering are followed.


In 2010, HSBC was cited by its federal regulator, the Office of the Comptroller of the Currency (OCC), for multiple severe AML deficiencies, including a failure to monitor $60 trillion in wire transfer and account activity; a backlog of 17,000 unreviewed account alerts regarding potentially suspicious activity; and a failure to conduct AML due diligence before opening accounts for HSBC affiliates.  Subcommittee investigators found that the OCC had failed to take a single enforcement action against the bank, formal or informal, over the previous six years, despite ample evidence of AML problems.


The Subcommittee investigation focused on five areas of abuse:


--Servicing High Risk Affiliates.  HSBC’s U.S. bank, HBUS, offered correspondent banking services to HSBC Bank Mexico, and treated it as a low risk client, despite its location in a country facing money laundering and drug trafficking challenges, high risk clients like casas de cambio, high risk products like U.S. dollar accounts in the Cayman Islands, a secrecy jurisdiction, and weak AML controls.  The Mexican affiliate transported $7 billion in physical U.S. dollars to HBUS from 2007 to 2008, outstripping other Mexican banks, even one twice its size, raising red flags that the volume of dollars included proceeds from illegal drug sales in the United States.


--Circumventing OFAC Safeguards.  Foreign HSBC banks actively circumvented U.S. safeguards at HUBS designed to block transactions involving terrorists, drug lords, and rogue regimes.  In one case examined by the Subcommittee, two HSBC affiliates sent nearly 25,000 transactions involving $19.4 billion through their HBUS accounts over seven years without disclosing the transactions’ links to Iran.


--Disregarding Terrorist Financing Links.  HBUS provided U.S. dollars and banking services to some banks in Saudi Arabia and Bangladesh despite links to terrorist financing.


--Clearing Suspicious Bulk Travelers Checks.  In less than four years, HSBC cleared $290 million in obviously suspicious U.S. travelers cheques for a Japanese bank, benefiting Russians who claimed to be in the used car business.


--Offering Bearer Share Accounts.  HSBC offered more than 2,000 accounts to bearer share corporations, despite the high risk of money laundering and illicit conduct that results since their ownership can be readily transferred without a trail. 


The report recommends a number of changes at HSBC’s U.S. bank, including higher scrutiny of HSBC affiliates for money-laundering risk, closing accounts of banks linked to terror financing, and steps to ensure the bank does not process transactions with prohibited entities such as terrorists, drug lords, and rogue regimes.  It also recommends overhauling the AML controls on travelers cheques and eliminating bearer share accounts.

Full Senate report:



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Mon, 07/16/2012 - 18:33 | 2622054 THX 1178
THX 1178's picture

Wow! The S continues to HTF...

Mon, 07/16/2012 - 18:35 | 2622060 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

And tonight America will watch the Bacholerette discuss her love life.

Mon, 07/16/2012 - 18:39 | 2622081 AldousHuxley
AldousHuxley's picture

Senate Throws The Book At HSBC Accusing It Of Not Massively money laundering enough into their campaign contribution coffers.


"Look at JP Morgan. They funnel drug and terrorist money into campaign contributions, but you HSBC, what have you done for US lately?" ---voice of US Senate

Mon, 07/16/2012 - 18:54 | 2622118 Pladizow
Pladizow's picture

“Where you have a concentration of power in a few hands, all too frequently men with the mentality of gangsters get control.” – Lord Acton

Mon, 07/16/2012 - 18:56 | 2622128 iDealMeat
iDealMeat's picture

Two Squids on the BOD:


Sir Simon Robertson† 70

Deputy Chairman and senior independent non-executive Director

Chairman of the Nomination Committee.

Skills and experience: a background in international corporate advisory with a wealth of experience in mergers and acquisitions, merchant banking, investment banking and financial markets; honoured with a knighthood in recognition of his services to business; extensive international experience having worked in France, Germany, the UK and the US.

Former appointments include: Managing Director of Goldman Sachs International and chairman of Dresdner Kleinwort Benson.


J L Thornton† 58

Chairman of the Group Remuneration Committee.

Current appointments include: non-executive Chairman and a director of HSBC North America Holdings Inc.; professor and director of the Global Leadership Program at the Tsinghua University School of Economics and Management; Chairman of the Brookings Institution Board of Trustees; a non-executive director of Ford Motor Company, News Corporation, Inc. and China Unicom (Hong Kong) Limited; a director of National Committee on United States-China Relations; a Trustee of Asia Society, China Institute, The China Foreign Affairs University, a member of the Council on Foreign Relations and the China Securities Regulatory Commission International Advisory Committee.

Former appointments include: non-executive director of Industrial and Commercial Bank of China Limited and Intel Corporation, Inc.; and President of the Goldman Sachs Group, Inc.

Mon, 07/16/2012 - 19:35 | 2622183 gmrpeabody
gmrpeabody's picture

Soon, the FBI, at the request of Eric Holder, will comb thru the offices of HSBC making sure that any and all evidence is lost or otherwise corrupted and of little future use. But not until HSBC settles out of court.

Mon, 07/16/2012 - 20:40 | 2622401 Bringin It
Bringin It's picture

Where's Slewie-the-pi-rat?  This is what I was telling you about HK RE.  Remember?  Cosmo had all this mumbo-jumbo for why.  When the main 'why' is that it is a way out.

Mon, 07/16/2012 - 21:40 | 2622668 Stackers
Stackers's picture

Uh, news flash - HSBC has been doing this for about 200 years since the China Opium wars

Mon, 07/16/2012 - 18:59 | 2622138 No One
No One's picture

U.S. Banks hate international competition. 



Mon, 07/16/2012 - 19:18 | 2622185 JohnG
JohnG's picture

<--- Electioneering.

<--- HSBC forgot to pay the hush money.

Mon, 07/16/2012 - 19:35 | 2622216 Ignorance is bliss
Ignorance is bliss's picture

Certainly JPM is a piece smelly garbage doing the Fed's dirty work, but what about Eric Holder and the Obama administration? That scum bag armed the drug cartel "Fast and Furious" Yet the Senate has the balls to accuse HSBC? Smacks of tit for tat currency wars. I seem to recall HSBC with their good mafioso friends JPM dominate the short side of the metals. Makes me wonder what the next tit for tat will look like. Smells like change is in the air either that or its the smell of genitalia in the wind. Could be both.

Mon, 07/16/2012 - 19:43 | 2622217 Ignorance is bliss
Ignorance is bliss's picture

double post.

Mon, 07/16/2012 - 19:10 | 2622164 Gringo Viejo
Gringo Viejo's picture

Fuck the senate! They're bought & paid for by the bankers. HSBC will pay a fine "without agreeing to any wrong doing"....and pick up where they left off....fucking the general public. Listen to me people, if you do not take care of this shit while you own guns, when these asshole sonsabitches come to take them away, you won't have ANY recourse.

NONE! Wake up assholes!

Mon, 07/16/2012 - 19:54 | 2622278 Gringo Viejo
Gringo Viejo's picture

Listen up people. I'm an old ex-marine from the 60s. The PTB will be coming for me soon; I'm their worst nightmare. An American patriot who's willing to die for America. When my woman has been given "free conduct"....and I'm facing down the SWAT team....REMEMBER ME! AVENGE ME! THIS IS MY COUNTRY & FUCK THE EVIL THAT HAS OVERTAKEN HER!

Mon, 07/16/2012 - 20:22 | 2622341 j0nx
j0nx's picture

Marines are never EX-Marines. A Marine can be a former Marine but never an ex-Marine. I would assume a real Marine would know that.

Mon, 07/16/2012 - 21:33 | 2622637 JohnG
JohnG's picture


Mon, 07/16/2012 - 23:59 | 2623114 aldante
aldante's picture

Oohrahh devil dog,

Tue, 07/17/2012 - 08:24 | 2623633 Gringo Viejo
Gringo Viejo's picture

Now that I've sobered up, I bow to your semantics sonny. Sorry for having offended you and the other ladies.

Mon, 07/16/2012 - 20:27 | 2622360 MonsterBox
MonsterBox's picture

dude... really, switch to decaf

dig out you gilley suit and disappear.  dont let SWAT know your name, just your 300 grain calling card

Mon, 07/16/2012 - 20:47 | 2622434 Bringin It
Bringin It's picture

Disappear.  Live to fight another day.  Read Sun Tzu.  Pick your time and place.  By 2013 the people will surely be awake.

We all feel your pain.


Mon, 07/16/2012 - 18:35 | 2622059 JLee2027
JLee2027's picture

HSBC is/was one of the two major short players at COMEX precious metals with old JP the other.


So this can only be good news.

Mon, 07/16/2012 - 18:37 | 2622070 THX 1178
THX 1178's picture

If you hold physical. Especially silver. Gold is good too. But silver... HOBOY...

Mon, 07/16/2012 - 18:57 | 2622116 knukles
knukles's picture


If my fading memory severs me half assed well, hasn't HSBC historically been the BoE's agent within the precious metals markets as JPM has been Treasury/Fed's?
Which then begs two observations....
1.) Has anybody else but dimwitted little old me noticed that the lists of the banks on the rumored criminal hit list for LIBOR all been foreign domiciled?  None form the US.....
Gee willickers, we're on top of it Captain.
Somebody's gotta show the peasantry that there is justice in an election year.
(And PS, pass the campaign contributions along with the Grey Poopon) 
2.) Just as little Bobby Diamond "threatened" the City of London (Don't forget the old adage; "Nobody fucks with the City of London") HSBC couldn't be a better target for the investigators to isolate.  For being BoE's agent extraordinaire,  the chances of anything happening larger than a wrist tapping approach the probability of Moe, Larry and Curley being elected to public office.

Nothin's gonna come of this of substance.
Else ya'll gotta tag Wells, Citi, etc., etc., etc

And every single American Bank doing business within/via the City will be "vaporized".
Her Majesty, Whitehall, Downing Street, and the REAL pigmen ain't gonna allow even the venerable US Senate to interfere with them.

Senators are there to be bribed, purchased and maipulated.  Not to govern.
KabukiTheater?  Certainly.
Serious nailing of 'em?  Not a chance
Retribution?  Priceless.

     You do not fuck with the City.

Mon, 07/16/2012 - 19:21 | 2622192 Mentaliusanything
Mentaliusanything's picture

Ya makes me chuckles knuckles. This poster puts the Acid on the Elephant.

End result - In the City where there was much ado about nothing.

"She dying, as it must be so maintain'd,
Upon the instant that she was accus'd,
Shall be lamented, pitied, and excus'd
Of every hearer"


Mon, 07/16/2012 - 19:28 | 2622202 iDealMeat
iDealMeat's picture



City of London Corp.


See:  Ring of Power

Mon, 07/16/2012 - 20:38 | 2622394 WaterWings
WaterWings's picture

Left, right, up, down this is some funny sheisse. All youz ZHers... love you much.

Tue, 07/17/2012 - 00:18 | 2623150 RockyRacoon
RockyRacoon's picture

I think the real joke was just glossed over:

"...OCC had failed to take a single enforcement action against the bank, formal or informal, over the previous six years, despite ample evidence..."

Where are the hearings to put some OCC pukes in jail for not doing their job?   Talk of claw-back, how come we can't have them regurgitate some of the OCC salaries for the last 10 years?  After all, they got paid for doing nothing.

We don't need regulations, we need regulators.  What good are the laws if they are flaunted?   Doing business in the good ole U S of A used to be dependable and predictable since we had "the rule of law".   Right.

Mon, 07/16/2012 - 18:35 | 2622063 Real Estate Geek
Real Estate Geek's picture

HSBC:  "But officer, I was just keeping up with traffic."

Mon, 07/16/2012 - 18:47 | 2622095 Problem Is
Problem Is's picture

AS Timmah's Aunt Jamie & Uncle Lloyd blow by in a red Porsche convertible...

Mon, 07/16/2012 - 18:36 | 2622064 deez nutz
deez nutz's picture

HSBC throws book back at Senate........  and laffs.

Mon, 07/16/2012 - 18:36 | 2622065 nasa
nasa's picture

The kick-back money HSBC owed must have been a little slow coming this month. 

Mon, 07/16/2012 - 18:38 | 2622074 slaughterer
slaughterer's picture

HSBC down = SILVER up.  

Mon, 07/16/2012 - 18:53 | 2622112 fonzannoon
fonzannoon's picture

Won't HSBC just have to sell all that "silver" they "absolutely" own and would that not drive the "paper" price down?

Mon, 07/16/2012 - 19:17 | 2622177 Bohm Squad
Bohm Squad's picture

Fortunately, the market can absorb the 9000 ounces of physical silver they actually have...!  :)

Seriously, if they're short, then they'd probably need that silver to cover...especially if cash is needed elsewhere.  Like when Blythe told everyone they short silver for their customers...probably a delta neutral thing.

Mon, 07/16/2012 - 18:38 | 2622075 Disenchanted
Disenchanted's picture



The Hijacking of Capitalism


Mon, 07/16/2012 - 18:38 | 2622079 buzzsaw99
buzzsaw99's picture

Who are the terrorists?

Mon, 07/16/2012 - 18:39 | 2622082 BurningFuld
BurningFuld's picture

The report "recommends some changes". That's as far as it goes boys and girls. They will pay the hush money and move on.

Mon, 07/16/2012 - 18:55 | 2622108 toady
toady's picture

'Recommends some changes' does NOT equal Throws the book at them'

Mon, 07/16/2012 - 19:08 | 2622158 chunga
chunga's picture


John Corzine already told them what they could do with their "book".

Get Fucked!

Mon, 07/16/2012 - 18:43 | 2622085 Piranhanoia
Piranhanoia's picture

   "Honest, we had to make it look like we do something in the senate",  give me my campaign money bitch.

Mon, 07/16/2012 - 18:43 | 2622086 Johnk
Johnk's picture

"Glorified.  Vilified. Gentrified.

Different Values make the world a richer place.




Mon, 07/16/2012 - 18:44 | 2622090 myshadow
myshadow's picture

holder, buhler, holder, buhler?



Mon, 07/16/2012 - 18:45 | 2622091 q99x2
q99x2's picture

Its Election Season. Time for setting the campaign stage by prosecuting a bankster near you.

Yeeeeehhhhhh Haaaaaaaaaa.

Hang em high and hang em low.

Movin movin movin keep them doggies rolling Rawhide.

Scapegoatin time has arrived for thems elite bankin folks. 

Mon, 07/16/2012 - 19:07 | 2622156 NotApplicable
NotApplicable's picture

A.k.a. "gettin' paid!"

Mon, 07/16/2012 - 18:47 | 2622097 Satan
Satan's picture

Drug cartels and terrorists are the only clients left with any money...

Mon, 07/16/2012 - 22:04 | 2622740 Real Estate Geek
Real Estate Geek's picture

Well, the banks can't discriminate against them. Drug cartels and terrorist are typically disadvantaged minorities and the ONE thing that Holder won't tolerate is discrimination.

Tue, 07/17/2012 - 03:15 | 2623342 Dr. Sandi
Dr. Sandi's picture

The only terrorists with any money are getting it from government black ops. And that would be....

Drug Cartels.


The circle is complete as the snake swallows itself whole.

Mon, 07/16/2012 - 18:48 | 2622100 No One
No One's picture

Oh that Hong Kong Shangai Banking Coproration. They should have HQ'd in NYC.


 I am sure the fact that is a London based bank has NOTHING to do with the Sentate looking at HSBC, rather than our FINE institutions like Citi, JPM, and BofA. 

Mon, 07/16/2012 - 18:49 | 2622103 silvertrain
silvertrain's picture


Mon, 07/16/2012 - 18:52 | 2622109 bankonzhongguo
bankonzhongguo's picture

What a joke.  I used to run AML in a major bank.  A little IT access.  Some high school level SQL and statistics and Presto!  You have all the analysis you will ever need and then it is never to call the police.  You just politely ask the client to close their account.  You act before there is a smoking gun.

The global economy is predicated on 3 things.  Gold, Guns, and Drugs.  And the banks to facilitate it all.

People forget why Bush 1 invaded Panama - only after Noriega threatened to nationalize all those publicly traded drug money laundering banks.


Mon, 07/16/2012 - 19:21 | 2622173 YouAreBliss
YouAreBliss's picture

Not to mention Iran-Contra.  Drugs for Money - Money for Nothing - and the Chicks are for free.


Now shut-up and get back to loading those washing machines - we aren't paying you minumum wages for nothing.


Anyone under 30 should Wiki Iran-Contra.  What happened to that cast of characters?

One became President, another became a FOX News Hero, another now holds the similarly named chair at the Foundation for Defense of Democracies, another co-founded an international consulting company.


Wow what punishment!   That set the stage for anything goes.  Hello Niger Yellow Pudding Pie!

Mon, 07/16/2012 - 20:01 | 2622294 HardAssets
HardAssets's picture

"The global economy is predicated on 3 things. Gold, Guns, and Drugs."

Well 2 outta 3 ain't bad - - - unless you count all the aspirin I  take when reading these various ZH articles on the banksters. Definite headache material.

Mon, 07/16/2012 - 18:52 | 2622110 Johnk
Johnk's picture

HSBC Values and Business Principles

Dependable and do the right thing

  • Stand firm for what is right, deliver on commitments, be resilient and trustworthy
  • Take personal accountability, be decisive, use judgment and common sense, empower others
Mon, 07/16/2012 - 19:27 | 2622196 YouAreBliss
YouAreBliss's picture
  • And be sure to use just a dap of grease - you must make them feel it.
Mon, 07/16/2012 - 18:52 | 2622111 world_debt_slave
world_debt_slave's picture

This is what you can do when you are the 800lb gorilla in the room. The Fed Gov has and does the same thing.

Mon, 07/16/2012 - 19:02 | 2622122 kill switch
kill switch's picture


The PSOI is targeting them? when it's the U.S. that has been engaged in this for thirty years and more, the hypocrisy and utter hubris in this Creeping Coup we live in is astounding...Let's hear it for truth justice and the Amerikan way!!! USA USA USA USSA!!!

With Carl Levin who wrote the book on fraud!!!

His interrogation of George Galloway was pathetic...That took care of Norm Coleman the PNAC and Samuel P. Huntington cartel stooge...

And they skipped watching CITI, GOLDMAN JPM,WELLS.......on and on ad on...It's nice to live in a 750 trillion dollar mafia entity.

Mon, 07/16/2012 - 18:55 | 2622124 adr
adr's picture

Is this supposed to be news? Tell us all something we didn't know.

Wait, what? HSBC is involved with money transfers involving human trafficking for hedge fund tycoons so they can have 14 year old Indonesian virgins delivered to NYC penthouses.

That wouldn't surprise me if it came out. It also wouldn't surprise me to learn that Barney Frank got the government goon squad to go after HSBC because his delivery of young boys didn't show up.

The reality is the lives of our politicians, bankers, traders, and CEOs truly do resemble the plot devices of Law and Order SVU. The sad part is that people actually believe those currently in power are good.

Mon, 07/16/2012 - 20:08 | 2622306 HardAssets
HardAssets's picture

"The sad part is that people actually believe those currently in power are good."

People are such fuckin' children when it comes to this stuff. Pisses me off to no end.

Tue, 07/17/2012 - 03:17 | 2623344 Dr. Sandi
Dr. Sandi's picture

Wait a minute. What are you saying?????

Mon, 07/16/2012 - 18:56 | 2622126 blindman
blindman's picture

Warren Zevon - Lawyers Guns & Money - Acoustic Live
Werewolves Of London
".. little old lady got mutilated late last night,
were wolves of london again." ..w.z.

Mon, 07/16/2012 - 18:57 | 2622131 juggalo1
juggalo1's picture

This shit pisses me off, because I've had to fill out forms, and wait for verifications to come through when I helped foreigners open bank accounts and transfer money as an interpreter.  The guy at the auto plant down the street takes hours to get through the line, but they still let through the real criminals.

Tue, 07/17/2012 - 03:17 | 2623345 Dr. Sandi
Dr. Sandi's picture

I believe there is an important lesson here.

Mon, 07/16/2012 - 18:57 | 2622132 FieldingMellish
FieldingMellish's picture

Drug trafficking?!?!?! They are totally fucked now! If only they had kept to extortion, murder, rape and fraud like the rest of the boys they would have been fine.

Mon, 07/16/2012 - 21:14 | 2622536 FieldingMellish
FieldingMellish's picture

Oh yeah... and to all the good members of the NAR... go fuck yourselves and your 6% commission.

Mon, 07/16/2012 - 19:00 | 2622140 machineh
machineh's picture

This HSBC diss is old news ... and serves as a smokescreen for Congress failing to exercise oversight in many other areas.

For instance, the CIA is running wild with its independent drone program. And there ain't shit that Senator Levin can do about it. He ain't in the loop.

Meanwhile, AG Holder is in declared contempt of Congress ... but they don't have the balls to arrest or impeach him. They are just impotent, angry old men.

LOSERS! POSEURS! Probably pissed that their guaranteed insider trades aren't making no money this year.

Mon, 07/16/2012 - 19:01 | 2622142 whoopsing
whoopsing's picture

Banking clampdown for the plebs in 3..2..1..

Mon, 07/16/2012 - 19:06 | 2622155 knukles
knukles's picture


Oh the humanity of it all.
False flag Alert!

Mon, 07/16/2012 - 19:10 | 2622165 surf0766
surf0766's picture

Well now everyone get 820 credit scores.

Free shit for everyone

Mon, 07/16/2012 - 19:02 | 2622144 Meesohaawnee
Meesohaawnee's picture

wake me up when theres a handcuff. until then .. yawn. i laugh.. and we used to make fun of the Chinese. Now they make fun of us. In china there would be no trial of the jamies, corzines, hsbc,, we know the conclusion there.

Mon, 07/16/2012 - 19:03 | 2622145 Johnk
Johnk's picture

Going through the Senate report....apparently HSBC offered Osama bin Laden free checking with no minimum balance.

Mon, 07/16/2012 - 19:25 | 2622198 YouAreBliss
YouAreBliss's picture

Don't forget the 0% loans to OBL - have to keep the WAR machine alive.


Tue, 07/17/2012 - 03:19 | 2623347 Dr. Sandi
Dr. Sandi's picture

Those bastards.

bin Laden should have been forced to use a credit union for that kind of privilege just like the rest of us.

Mon, 07/16/2012 - 19:04 | 2622147 YouAreBliss
YouAreBliss's picture

And in punishment - they have to forgo 10% of their bonus increases and write 100 times on the black board:

"I will not money launder, traffic drugs or finance terrorism"

Mon, 07/16/2012 - 20:04 | 2622298 Mentaliusanything
Mentaliusanything's picture

"I will not get caught money laundering, trafficing drugs or financing terrorism"

Fix it for ya

Mon, 07/16/2012 - 19:06 | 2622152 tony bonn
tony bonn's picture

all of the tbtf banks are involved in drug trade and money laundering......anyone who thinks otherwise is uninformed and profoundly foolish....without this income, they would have required even greater bailout funds....

the banks and cia have the most incestuous relationship in offialdom....

the senate can huff and puff but it is a verity that its report will come and go and that will be that - just the same as with the cia's/bush crime syndicate's destruction of the trade towers and pentagon...

Mon, 07/16/2012 - 19:10 | 2622163 Peter Pan
Peter Pan's picture

When I see the corrupt hounding the corrupt I begin to think that the upper echelons have almost finished stripping the plebs and are now cannibalsing each other. It's strange how the US government never chose to act on the UN findings that at the time of the GFC governments turned a blind eye to drug and crime money that was accepted into the banking system without any questions asked for the sake of propping up the banking system.

Why doesn't the Senate conduct an inquiry and an audit into all the charitable institutions in the USA to see how charitable their expenses are?

Our list of questions gets longer and longer while any hope of decency and recovery gets shorter and shorter.

Tue, 07/17/2012 - 03:20 | 2623350 Dr. Sandi
Dr. Sandi's picture

The All Cannibal Revue is where all the shit we've been watching starts to get interesting.

Mon, 07/16/2012 - 19:15 | 2622172 KickIce
KickIce's picture

I'm sure accusation against the CIA will follow...


Mon, 07/16/2012 - 19:16 | 2622176 RS2OOO
RS2OOO's picture

This line got me:


"In a nearly 400-page report, the subcommittee detailed a regulatory culture at the bank where some officials allegedly engaged in risky behavior in pursuit of profits."


Wow, imagine that, taking risks in pursuit of profit!

Mon, 07/16/2012 - 19:17 | 2622179 KCMLO
KCMLO's picture

Smacks of a shakedown when you go to press with a release rife with syntax and gramatical errors.  Also, HSBC transfered $60 trillion?  That's a crazy typo, or are we at that point of dollar dilution via QE?

Mon, 07/16/2012 - 19:17 | 2622180 Bennie Noakes
Bennie Noakes's picture

Pot and kettle.

Mon, 07/16/2012 - 19:20 | 2622191 Whoa Dammit
Whoa Dammit's picture

"In 1966, Michael Hudson, a young Chase Manhattan balance-of-payments economist, was in a company elevator when he was handed a memo by a former State Department operative. The memo came from the U.S. government, and Hudson was tasked with figuring out how much foreign money the U.S. might attract. “They were saying, ‘We want to replace Switzerland,’ ” Hudson explains. “All this money will come here if we make this the criminal center of the world. We wanted foreign criminal money, which was patriotic, but not American criminal money.

In the years since then, almost unknown to most Americans, the United States has turned itself into a giant tax haven for foreigners, just as the memo suggested. Federal and state tax laws have been deliberately shaped to give foreigners special tax exemptions unavailable to Americans, plus financial secrecy and exemptions from regulatory restraints."

Tue, 07/17/2012 - 03:22 | 2623352 Dr. Sandi
Dr. Sandi's picture

I had Jell-o today.

Mon, 07/16/2012 - 19:26 | 2622199 buzzsaw99
buzzsaw99's picture

Thank god for dick shelby. [/sarc.]

Mon, 07/16/2012 - 19:32 | 2622215 YouAreBliss
YouAreBliss's picture

What we need is the Tea party to investigate - you know Dick Armey and Freedom Works.......but wasn't he a lobbyist for....

Mon, 07/16/2012 - 19:30 | 2622204 YouAreBliss
YouAreBliss's picture

HSBC is suing the Senate for giving away it's trade secrets.

Mon, 07/16/2012 - 19:37 | 2622225 MIDTOWN
MIDTOWN's picture

Depending upon geographic location, approximately 20-30% of Realtors have left the business since 2006.

Not all Realtors agree with NAR actions, however, many are members of NAR in order to gain access to MLS.

Prior to 1986/1989 the Real Estate Market had the benefit of two factors that supported price levels and increased liquidity:

1. Real Estate loans were freely assumable, meaning if you had large enough downpayment to cover Sellers equity you could assume the Sellers loan (and bypass the bank).

2. "passive loss rules."  Losses from passive tax shelters and losses from operating rental real estate can only be used as a deduction, or credit, against profits from other passive tax shelters and real estate. 

The new rules reportedly resulted in significant declines in the values of real estate as high income individuals lost a considerable incentive to own real estate investments and thus gravitated towards the stock market.

Mon, 07/16/2012 - 19:44 | 2622245 ptolemy_newit
ptolemy_newit's picture

Here’s where you should start if you have any patriotism in you!

An annual meeting of the association is held every year in January, in conjunction the American Economic Association and the North American Winter Meetings of the Econometric Society as a part of the Allied Social Sciences Association. The president speaks on a selected topic and there are presentations of various financial papers. The AFA and the Western Finance Association Meetings are considered to be the two top general finance conferences in the world.


Mon, 07/16/2012 - 19:45 | 2622248 FischerBlack
FischerBlack's picture

LOL. HSBC to Carl Levin: Dude, we were a day late with your payoff money! We even killed the guy who fucked that up, just as you requested. What the hell? Call off the dogs and we'll pay triple next month!

Mon, 07/16/2012 - 19:52 | 2622271 HardAssets
HardAssets's picture

Ya'll have watched Senate/Congressional 'investigation' hearings before havent you ?

They either ask those called before them easy questions (because theyve been bought off)  or

ask dumb questions (because theyre clueless ).

At most there might be some small fine - - - a fraction of what HSBC made off of their investigated activities. A small pittance as tribute and to make the politicians look better during an election year when its definitely hitting the fan.

Mon, 07/16/2012 - 20:33 | 2622373 Real Estate Geek
Real Estate Geek's picture

Ya'll have watched Senate/Congressional 'investigation' hearings before havent you ?

I swore off of them after watching Maxine Waters make a fool of herself . . . once again.

Mon, 07/16/2012 - 20:14 | 2622319 T-Silver
T-Silver's picture

This will be bullish for the thier stock

Mon, 07/16/2012 - 20:17 | 2622324 Catullus
Catullus's picture

It's the US going after ex-pats for not having every transaction tracked by federal authorities. It's new under the "absence of evidence is absolute definitive proof of guilt" (see the Penn State investigation).

Mon, 07/16/2012 - 20:52 | 2622456 yogibear
yogibear's picture

LOL, a public show, a slap on the wrist and backroom senators squeezing for bigger political contributions.

Fraud and looting has been legal for some time. The senators and congressmen have to shakedown the financial industry for more campaign money.


Mon, 07/16/2012 - 20:55 | 2622466 alfred b.
alfred b.'s picture


     So what's the fine gonna be....some 300 bucks or something!   Oh yeah, for sure, they will include the always infamous phrase:  "Now you guys make sure that you don't do that again."

     Corruption based on fraud with the assistance of gunerment...what else would you expect??


Mon, 07/16/2012 - 21:09 | 2622518 loveyajimbo
loveyajimbo's picture

Notice how few of these big news items ever come from the "regulators" at the CFTC, SEC or Justice?  What a cast of corrupt clowns Barry has put together... I bet HE has more offshore than Mitt!

Mon, 07/16/2012 - 22:05 | 2622759 sumo
sumo's picture

Wait. The Senate can't threaten HSBC. How is the CIA going to launder Afghan drug money to fund its portfolio of black operations?

Oh, through a hundred other banks eager for the business? Ok, then. Carry on.

Mon, 07/16/2012 - 23:24 | 2623008 Son of Loki
Son of Loki's picture

House prices have a loooong way to drop.......Market Forces inevitably will win.

Tue, 07/17/2012 - 03:09 | 2623338 Dr. Sandi
Dr. Sandi's picture
Senate Throws The Book At HSBC Accusing It Of Massive "Money Laundering And Terrorist Financing"

HSBC throws book back to Senate after signing 100 large checks contained within.

Tue, 07/17/2012 - 04:39 | 2623391 Scalaris
Scalaris's picture

Thomas Sutherland would be proud of his creation.

Tue, 07/17/2012 - 08:32 | 2623675 shutupnsing
Tue, 07/17/2012 - 08:34 | 2623685 shutupnsing
Wed, 07/18/2012 - 04:58 | 2627282 Kalevi
Kalevi's picture

My take of this is, HSBC got too big share of the drug money in Mexico, that pissed of the gringos, it’s their money after all, and Mr Slim and his his pals.
HSBC Mexico is my bank, they are by far better in handling money coming in then any other bank, but they are really not interested in retail banking, their auto loans are 2% points higher then the dealer, and that’s just ridiculous.
The dear gringos are as always going after the “aliens” instead of their own drug infused elites, not much different then the British, everybody look after their own.
Nothing new here.

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