The worlds third largest bank is embroiled in yet more scandal: money laundering for drugs cartels, Iranian illegal dealings worth an estimated $16 Billion and illegal banking for terrorists. The company have been fined $1.92 Billion yet this just may be the tip of the iceberg for the UK banking sector. This video summerizes the banks activities very well.
Mexican and Columbian drug cartels viewed the bank as the place to do their business; perhaps the bankers viewed this as an opportunity too good to miss as it involved $881 Million in cash transfers alone apart from the volume of deposited cash. The bank also appears to have strategies that allowed clients to avoid U.S. and U.N. sanctions that prohibit dealings with countries such as Iran, Libya, Sudan, Myanmar and Cuba. Because of the volume of surveliance allerts numbering 13,000 to 15,000 suspicious alerts generated monthly. It appears that many of those involved in illegal activities will continue to operate. Therefore perhaps HSBC is too big and has too many powerful connections to meaningfully punish as the outllook appears to be business as usual. Although the bank knowingly co-operated and actively engaged with criminals and terrorists because of the large sums of money and corresponding business revenue apparently without the knowledge of MI5, FBI or the CIA; which seems hard to believe their business continues unabated and undeterred by politics or humanitarian needs.
The stock price has dropped slightly on this news by about 0.5%.
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| A Kangaroo Hearing has been priced in the stock value |
