Showing posts with label HSBC. Show all posts
Showing posts with label HSBC. Show all posts

Tuesday, January 28, 2014

HSBC restricts withdrawls, UST steals 401Ks, and Jamie gets a Raise!!


HSBC restricts withdrawls, UST steals 401Ks, and Jamie gets a Raise!!


A little more Financial News for your Saturday morning read.

First up, HSBC is showing a lovely bit of transparency. 


http://www.zerohedge.com/news/2014-01-24/bank-run-fears-continue-hsbc-restricts-large-cash-withdrawals

Bank-Run Fears Continue; HSBC Restricts Large Cash Withdrawals

Tyler Durden's picture




 
Following research last week suggesting that HSBC has a major capital shortfall, the fact that several farmer's co-ops were unable to pay back depositors in China, and, of course, the liquidity crisis in China itselfnews from The BBC that HSBC is imposing restrictions on large cash withdrawals raising a number of red flags. The BBC reportsthat some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it. HSBC admitted it has not informed customers of the change in policy, which was implemented in November for their own good: "We ask our customers about the purpose of large cash withdrawals when they are unusual... the reason being we have an obligation to protect our customers, and to minimise the opportunity for financial crime." As one customer responded: "you shouldn't have to explain to your bank why you want that money. It's not theirs, it's yours."

Via The BBC,
Some HSBC customers have been prevented from withdrawing large amounts of cash because they could not provide evidence of why they wanted it, the BBC has learnt.

Listeners have told Radio 4's Money Box they were stopped from withdrawing amounts ranging from £5,000 to £10,000.

HSBC admitted it has not informed customers of the change in policy, which was implemented in November.

The bank says it has now changed its guidance to staff.

...

"When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved."

Mr Cotton says the staff refused to tell him how much he could have: "So I wrote out a few slips. I said, 'Can I have £5,000?' They said no. I said, 'Can I have £4,000?' They said no. And then I wrote one out for £3,000 and they said, 'OK, we'll give you that.' "

He asked if he could return later that day to withdraw another £3,000, but he was told he could not do the same thing twice in one day. 

Monday, January 27, 2014

Furious Backlash Forces HSBC To Scrap Large Cash Withdrawal Limit

Graphic courtesy Max Keiser


http://www.maxkeiser.com/2014/01/furious-backlash-forces-hsbc-to-scrap-large-cash-withdrawal-limit/

Furious Backlash Forces HSBC To Scrap Large Cash Withdrawal Limit Posted on January 26, 2014 by Max Keiser

Following the quiet update that HSBC had decided to withhold large cash withdrawals from some if its clients – demanding to know the purpose of the withdrawal before handing over the customers’ money – it appears the anger among the over 60 thousand readers who found out about HSBC’s implied capital shortfall just on this website, has forced HSBC’s hands.

The bank issued a statement (below) this morning defending their actions – it’s for your own good – but rescinding the decision – “following feedback, we are immediately updating guidance to our customer facing staff to reiterate that it is not mandatory for customers to provide documentary evidence for large cash withdrawals.” After all the last thing the bank, which over the past few years has been implicated in aiding an abetting terrorists and laundering pretty much anything, wants is an implied capital shortfall to become an all too explicit one.


Sunday, September 15, 2013

NSA Follow the Money branch spied on VISA customers, SWIFT transactions report


I have one big question to ask... if they had all this inside data what did they do with it? Speculate in the markets?  They sure didn't arrest many bankers!  16 Trillion from the FED and nobody went to jail? When I worked on the VISA transaction system in Foster City, it was well known there were certain VIP cards that were always automatically cleared.... 

BTW: Bloomberg data shows HSBC owns SWIFT lock-stock-and-barrel... and the vertical integrated market of add-on SWIFT services!   -Bill
NSA Follow the Money branch spied on VISA customers, SWIFT transactions report

Published: Sep 15, 2013, 07:31 PM

The NSA has been widely monitoring international banking and credit card transactions, a new report says referencing Edward Snowdens leak. The agency targeted VISA customers and global financial service SWIFT and created its own money flows database.

Referring to information leaked by Edward Snowden, a former CIA employee and NSA contractor, German Der Spiegel reports that the surveillance was carried out by a branch called "Follow the Money" (FTM). 

After the information on transactions was obtained, it was redirected to the NSA's own financial database, called "Tracfin". 

According to the leaked documents, in 2011 the database contained 180 million records, with 84 per cent of those being credit card transactions details. 

Among the millions of records, the NSA's Tracfins also contained data from the Brussels-based Society for Worldwide Interbank Financial Telecommunication (SWIFT). Used to conduct business operations with speed, certainty and confidence, this global financial service is used by more than 10,000 banking organizations in 212 countries. 

The NSA spied on SWIFT on several levels, involving its "tailored access operations" division, according to the report in Der Spiegel. Reading "SWIFT printer traffic from numerous banks," was just one of the ways the NSA was accessing the information. 

One of the NSAs goals was to "collect, parse and ingest transactional data for priority credit card associations, focusing on priority geographic regions." 

According to documents dated 2010, the agency was spying on large credit card companies customers, Der Spiegel adds. In particular, the NSA was getting access to transactions by VISA customers in Europe, the Middle East and Africa. Reportedly, speaking at an internal conference that year, NSA analysts described in detail how the search through the US company's complex transaction network for tapping possibilities was conducted. 

However, when Der Spiegel reached VISA for a comment, its spokeswoman ruled out the possibility that data could be taken from company-run networks. 

According to one of the documents, the UK's intelligence agency, GCHQ, admitted cooperation with the NSA to spy on the world finance system. In its report, concerning the legal perspectives on "financial data", it said that the collection, storage and sharing of politically sensitive data was a deep invasion of privacy and involved "bulk data" full of "rich personal information," much of which "is not about our targets."

Monday, August 19, 2013

The ZAP Report 8-18-2013


Text in red is from AK/Bill...and not part of the original posting...
Greetings and Salutations,

We have definitely entered another round of "Rumor Du'Jour, Funny Season". It's very important to keep your feet planted firmly on the ground. If you are paying attention many of these rumors appearing as FACT re-surface about every 3 months and this has been part of the ever-ending story for at least the last 12 years give or take. Remember the meaning of FEAR...False Evidence Appearing Real. Discernment is a mandate in this time of change. Don't take any wooden nickels.

The shark's are certainly searching for "Chum" out in the waters of the internet. Prosperity Programs have been closed for years. Be cautious and discreet with what you are willing to be bitten by. All those that have attached their energy to one or many of these programs will receive their promised returns. There will be other opportunities in the future but not until all the changes have been put into place. 



From Zap……….

Hi All

Oh boy. much talk out there. and even the grand disinformation guys have no choice but to mix a greater amount of truth into their rants.

In respect of the Dinar RV…There is talk that china does not want it to happen. why wouldn’t they? They bought a container load in preparation of buying iraq oil on the cheap. why would they buy cheap oil when their reserves are so huge? Because they want to use all that is available out there, and when others run out, they still have theirs, and will be able to sell for premium. Typical Chinese method of doing business. it has worked for many years. common sense right?

When will it happen? It could happen tonight for all I know. Remember I do not play in the Dinar arena, but do get interesting information directly.

This came to me the other night in respect of both the redemption of the historic assets and the RV: We have been told, the signatory for the buyer will be sending out contracts September 5th to the owners of the bonds (historic assets). That is only 2 short weeks away.

Sunday, August 11, 2013

‘It’s an economic war’: How the Edward Snowden of banking is blowing the whistle on secret Swiss accounts

Former French employee of HSBC Private Bank Herve Falciani collected
 data on at least 24,000 customers of HSBC's Swiss subsidiaries from
 2006 to 2008, while he worked in the bank's information technology
 development unit in Geneva, which he then passed on to French authorities.
The data is at the centre of a row between France and Switzerland over
suspicions of tax evasion by French citizens using Swiss bank accounts.


‘It’s an economic war’: How the Edward Snowden of banking is blowing the whistle on secret Swiss accounts

The New York Times | 13/08/08 | Last Updated: 13/08/09 12:00 AM ET
http://news.nationalpost.com/2013/08/08/how-the-edward-snowden-of-banking-is-blowing-the-whistle-on-secret-swiss-accounts/

Former French employee of HSBC Private Bank Herve Falciani collected data on at least 24,000 customers of HSBC's Swiss subsidiaries from 2006 to 2008, while he worked in the bank's information technology development unit in Geneva, which he then passed on to French authorities. The data is at the centre of a row between France and Switzerland over suspicions of tax evasion by French citizens using Swiss bank accounts.

Herve Falciani collected data on at least 24,000 customers of HSBC's Swiss subsidiaries from 2006 to 2008, while he worked in the bank's information technology development unit in Geneva, which he then passed on to French authorities. The data is at the centre of a row between France and Switzerland over suspicions of tax evasion by French citizens using Swiss bank accounts.

Hervé Falciani is a professed whistle-blower – the Edward Snowden of banking – who has been hunted by Swiss investigators, jailed by Spaniards and claims to have been kidnapped by Israeli Mossad agents eager for a glimpse of the client data he stole while working for a major financial institution in Geneva.

“I am weak and alone,” Falciani said, as three round-the-clock bodyguards provided by the French government looked on with hard stares. The protection was needed, he insisted, because he faces constant risk as the sole key to decipher the encrypted data – five CD-ROMs containing a list of nearly 130,000 account holders that may be the biggest leak ever in the secretive world of Swiss banking.

But as he settled into a deserted bistro for a two-hour lunch, Falciani, a former computer technician who has been on the run since 2008, seemed oddly relaxed for a fugitive. And why not?

He is in high demand these days, having cast himself as a crusader against the murky world of Swiss banking and money laundering. Once dismissed by many European authorities, he and other whistle-blowers are now being courted as the region’s governments struggle to fill their coffers and to stem a populist uprising against tax evasion and corruption.

“It’s an economic war,” said Falciani, an angular man of 41 with a dark goatee who sometimes dons disguises, although on a muggy summer afternoon favored an innocuous beige tie and short-sleeved dress shirt. “In Switzerland, the banks are so organized that they are able to circumvent new rules and laws to continue to enable tax evasion.”

Friday, August 9, 2013

"Hello Scotia Mocatta, This Is JPMorgan - We Urgently Need Some Of Your Gold"


Thanks to Dan for finding this one... -AK

"Hello Scotia Mocatta, This Is JPMorgan - We Urgently Need Some Of Your Gold"
Tyler Durden's pictureSubmitted by Tyler Durden on 08/08/2013 16:27 -0400

http://www.zerohedge.com/news/2013-08-08/hello-scotia-mocatta-jpmorgan-we-urgently-need-some-your-gold


Yesterday, it was HSBC. Today, the lucky respondent to JPM's polite gold 'procurement' request, is the second "fullest" New York commercial gold vault: Scotia Mocatta.

As ZH reported previously, following the announcement of an imminent withdrawal of 63.5k ounces of its gold (16% of the total), JPM's vault operations team promptly called around and to its disappointment was only able to procure a tiny 6.4k ounces: not nearly enough to preserve the impression that it is well-stocked. We then said, "None of which changes the fact that in a few days, the inventory in JPM's gold vault will drop to another record low of only 380K ounces and the JPM "rescue" pleas from HSBC and other Comex members will become ever louder and more desperate until one day they may just go straight to voicemail."

Today, as we predicted, the calls into HSBC indeed appear to have gone straight to voicemail (perhaps HSBC did not have any more unencumbered gold to share, perhaps it just didn't want to) which left JPM with just one option: go down the list.

Sure enough, as the just released Comex update shows, JPM was forced to receive a "completely unsolicited" handout of some 20.2K ounces from Scotia Mocatta, the vault best known for being situated under 4 WTC during September 11 (and whose current physical vault can be found conveniently within spitting distance of JFK airport).

Monday, August 5, 2013

The ZAP Report 8-3-2013



Oooh things get fun now!  And before September 1 too! We told you HSBC was the Dragons bank!  The contrast begins.  As Heather says "I love the Absolute Plan"!   All gets revealed... -AK

Greetings and Salutations,

Many important dates are included in today's update from ZAP. He was even kind enough to include some very important historical dates and information to help us better understand how we arrived at this point in history and where we are going from here.

From ZAP..........Hi All

Tomorrow, the global reset will begin. There is to be a series of announcements, amongst which is the RV of the dinar.

This ties in with the intense preparations that have been underway for most of the last months.

Sunday, August 4, 2013

Official: HSBC drops dozens of London missions


Hmmm... could the September 1 termination of government and corporate immunity from prosecution be involved? Was the Papal Apostolic letter the movitation? Did HSBC grow a conscience?  Was there the "white powder" in some of those diplomatic pouches?  Why so much cash flowing through embassies? Why won't any other banks pick up the business? Very curious indeed!  :) -AK


Official: HSBC drops dozens of London missions
Raphael Satter, Associated Press 2:18 p.m. EDT August 4, 2013
Britain HSBC
(Photo: Lefteris Pitarakis AP)


Official: Diplomats scramble to find a new place to put their money as HSBC closes their accounts. 

More than 40 different embassies, consulates and high commissions affected
The move was part of a wider reassessment started by chief executive Stuart Gulliver in 2011
http://www.usatoday.com/story/money/business/2013/08/04/hsbc-bank-close/2616933/

LONDON (AP) — HSBC bank has told dozens of foreign missions in London that it will close their bank accounts, an official said Sunday, news that has sent diplomats across the capital scrambling to find a new place to put their money.

Bernard Silver, an ex-honorary consul who serves as president of the Consular Corps of London, said he'd been told by British officials that more than 40 different embassies, consulates, and high commissions had been affected.

"The majority of missions are finding it very difficult for other banks to accept them," he said in a telephone interview.

Silver declined to name any specific missions, but the Mail on Sunday newspaper said that the Papal Nunciature — the Vatican's mission to London — was affected, as was the Papua New Guinea High Commission and the honorary consul from Benin.

Attempts to reach the Vatican's mission, Benin's honorary consul, and Papua New Guinea's high commissioner were not immediately successful, but the newspaper cited an official at the latter as expressing shock at the move.

"We've been banking with HSBC for 22 years," John Belavu was quoted as saying. "For them to throw us off in this way was a bombshell."

Friday, August 2, 2013

Looky Looky what HSBC owns!!!


http://removingtheshackles.blogspot.com/

Thursday, 1 August 2013

Looky Looky what HSBC owns!!!
This lovely bit of information came to me by way of a little birdy flying on by.   This is a list of some of the companies that HSBC owns- not all, because even more are hidden behind other ghost corporations and shells, and there are those companies that are owned by these companies listed below, and the joint ventures between these companies with other shell corporations.....  I will say that I find it quite interesting that the USA list is divided into USA (Delaware) and USA (Not Delaware)..... don't you find that interesting?

But you know what's W A Y  more interesting?  If you scroll down to the very very bottom of the page, you'll see that the last "Subsidiary Name" is listed under Viet Nam, shows 100% "percentage held" by HSBC..... and it's S.W.I.F.T.  Now.... anyone who knows banking, anyone who knows finance at all, knows S.W.I.F.T.

SWIFT (Society for Worldwide Interbank Financial Telecommunication)provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. Swift also sells software and services to financial institutions, much of it for use on the SWIFTNet Network, and ISO 9362. Business Identifier Codes (BICs) are popularly known as "SWIFT codes".

Basically- SWIFT codes move ALLLL the money allllll over the world.

...and HSBC owns it.   Nifty eh?

If you want to have some fun, pick a couple of these purported "companies" and so do a little searching.  I've only spent about 30 minutes and I've already spotted at least 5 different "shell" corporations. Have Fun!!! :>D

I had to adjust the cells of the spread sheet so that I could fit them all onto the page - sorry the info is a bit squished, LOL!  (I've readjusted the table and sorted by percent held and jurisdiction.  Note percent held indicates the amount of direct ownership of the subsidiary, secrecy score 0=transparent 100=opaque -AK)

Saturday, June 15, 2013

HSBC's Ad Campaign at Airports

HSBC Promoting DNA Based Banking Transactions

June 15, 2013
By American Kabuki

I just got back from my trip to Morocco visting Heather Tucci-Jarraf.   Wow what an experience, I will be writing more about that later.

I thought I'd post a sampling of the add campaign being conducted by HSBC in American airports.  HSBC has plastered American Airlines loading ramps (and perhaps other airlines?) with advertising  promoting "the future" as they see it.

We covered on American Kabuki earlier that Bank of America and VISA had filed patents on the Human Embodiment claiming they own how your embodiment works by making it a component of synthetic banking technology. It appears HSBC has also acquired the patents rights given the ad above.

HSBC (Hong Kong and Shanghai Banking Corporation) is owned by the so called "Dragon" families.  That control has become much more overt and less hidden in the last past 12 months along with their ownership of Wells Fargo Bank.

Thursday, November 1, 2012

HSBC Caught in New Drug Money Laundering Scandal




http://dissidentvoice.org/2012/10/hsbc-caught-in-new-drug-money-laundering-scandal/

HSBC Caught in New Drug Money Laundering Scandal
by Tom Burghardt / October 31st, 2012

While HSBC’s Canary Wharf masters are back-peddling furiously over charges that they gave a leg up to terrorist financiers and drug traffickers as a recent U.S. Senate report charged, new evidence emerged that its business as usual for the multinational banking giant founded by Hong Kong-based British opium merchants.

Earlier this month, The Independent reported that French police had “intercepted one of the dozens of ‘go-fast’ cars which transport cannabis at high speed from Spain to Paris. The seizure–banal in itself–unravelled an extraordinary network of drug-trafficking, money-laundering, fraud and tax evasion which sprawled over the invisible barrier which separates Paris from the city’s poor, multiracial suburbs.”

The bank embroiled in this latest scandal? Why HSBC, of course!

According to reporter John Lichfield, “bank notes handed by clients to street drug dealers in the suburbs were ending up, French and Swiss investigators discovered, in the safes of seemingly law-abiding, well-heeled citizens in the French capital.”

But that’s not the only place where crisp bundles of cash were turning up.

“A trio of Moroccan brothers, including a prominent fund manager in Geneva, are alleged to have concocted an elaborate scheme to launder money by balancing two illegal flows of cash,” The Independent averred.

At the center of this multimillion euro money laundering spider’s web were: Meyer El-Maleh, the managing director of the fund management firm GPF SA, and brothers Mardoché El-Maleh, the alleged bagman of the cannabis-for-cash scheme and Nessim El-Maleh, a fund management specialist with the Swiss private banking arm of HSBC, HSBC Private Bank (Suisse) S.A.

Tuesday, October 16, 2012

The oligarchs of the West keep churning their wheels but only manage to get deeper into the mud


The oligarchs of the West keep churning their wheels but only manage to get deeper into the mud

Posted by Benjamin Fulford
October 15, 2012

Last week 20,000 bureaucrats, journalists and government officials descended on Tokyo for a WB (World Bankrupt) and IMF (International Masturbation Fund) meeting and accomplished exactly nothing.

The meeting was a total waste of time because neither of these two Western-controlled institutions are willing to hand over control to the people and countries of the world. As a result, the 180 or so countries that are kept out of the control room naturally refused to hand over any more money to these defunct, unlicensed institutions.

Although this writer was in Tokyo and even walked within a few hundred yards of the festivities, he did not bother to go because having attended many such meetings over the years, he knew this one was doomed to be a dud. The Chinese made their feelings clear by not sending anybody senior.

As usual, the real news was happening under the surface where a titanic battle against the old world order continues to rage. In one development in that battle, at least $1.3 billion that went missing from the Japanese AIJ pension fund was traced to Lord James Sassoon via Societe Generale and HSBC, according to Japanese security police sources. At the time of this writing Sassoon has not responded to a call made to get his comment on these allegations.

However, it is clear that attempts by cabalists to loot large Japanese institutions like the Postal Saving Bank and the Japan Agricultural Bank have run into a brick wall in recent years, forcing the robbers to look further down the food chain towards the pension funds of medium and small enterprises.

Sunday, July 22, 2012

Prosecutors, Regulators Close to Making Libor Arrests



Exclusive: Prosecutors, regulators close to making Libor arrests

REUTERS http://goo.gl/tgLs1

By Matthew Goldstein and Jennifer Ablan and Philipp Halstrick
Sun Jul 22, 2012 12:18pm EDT

(Reuters) - U.S. prosecutors and European regulators are close to arresting individual traders and charging them with colluding to manipulate global benchmark interest rates, according to people familiar with a sweeping investigation into the rate-rigging scandal.

Federal prosecutors in Washington, D.C., have recently contacted lawyers representing some of the individuals under suspicion to notify them that criminal charges and arrests could be imminent, said two of those sources who asked not to be identified because the investigation is ongoing.

Defense lawyers, some of whom represent individuals under suspicion, said prosecutors have indicated they plan to begin making arrests and filing criminal charges in the next few weeks. In long-running financial investigations it is not uncommon for prosecutors to contact defense lawyers for individuals before filing charges to offer them a chance to cooperate or take a plea, these lawyer said.

The prospect of charges and arrests of individuals means that prosecutors are getting a fuller picture of how traders at major banks allegedly sought to influence the London Interbank Offered Rate, or Libor, and other global rates that underpin hundreds of trillions of dollars in assets. The criminal charges would come alongside efforts by regulators to punish major banks with fines, and could show that the alleged activity was not rampant in the banks.

"The individual criminal charges have no impact on the regulatory moves against the banks," said a European source familiar with the matter. "But banks are hoping that at least regulators will see that the scandal was mainly due to individual misbehavior of a gang of traders."

In Europe, financial regulators are focusing on a ring of traders from several European banks who allegedly sought to rig benchmark interest rates such as Libor, said the European source familiar with the investigation in Europe.

The source, who did not want to be identified because the investigation is ongoing, said regulators are checking through emails among a group of traders and believe they are now close to piecing together a picture of how they allegedly conspired to make money by manipulating the rates. The rates are set daily based on an average of estimates supplied by a panel of banks.

"More than a handful of traders at different banks are involved," said the source familiar with the investigation by European regulators.

There are also probes in Europe concerning Euribor, the Euro Interbank Offered Rate.

It is not clear what individuals and banks federal prosecutors are most focused on. A top U.S. Department of Justice lawyer overseeing the investigation did not respond to a request for a comment.

Reuters previously reported that more than a dozen current and former employees of several large banks are under investigation, including Barclays Plc, UBS and Citigroup, and have hired defense lawyers over the past year as a federal grand jury in Washington, D.C., continues to gather evidence.

The activity in the Libor investigation, which has been going on for three years, has quickened since Barclays agreed last month to pay $453 million in fines and penalties to settle allegations with regulators and prosecutors that some of its employees tried to manipulate key interest rates from 2005 through 2009.

Barclays, which signed a non-prosecution agreement with U.S. prosecutors, is the first major bank to reach a settlement in the investigation, which also is looking at the activities of employees at HSBC, Deutsche Bank and other major banks.

The Barclays settlement sparked outrage and a series of public hearings in Britain, after which Barclays Chief Executive Bob Diamond announced his resignation from the big British bank.

The revelations have raised questions about the integrity of Libor, which is used as benchmark in setting prices for loans, mortgages and derivative contracts.

Adding to concerns are documents released by the New York Federal Reserve Bank this month that show bank regulators in the United States and England had some knowledge that bankers were submitting misleading Libor bids during the 2008 financial crisis to make their financial institutions appear stronger than they really were.

Among other details, the Fed documents included the transcript of an April 2008 phone call between a Barclays trader in New York and Fed official Fabiola Ravazzolo, in which the unidentified trader said: "So, we know that we're not posting um, an honest LIBOR."

The source familiar with the regulatory investigation in Europe said two traders who have been suspended from Deutsche Bank were among those being investigated. A Deutsche Bank spokesman declined to comment.

The Financial Times reported on Wednesday that regulators we're looking at suspected communication among four traders who had worked at Barclays, Credit Agricole, HSBC and Deutsche Bank.

Credit Agricole said it had not been accused of any wrongdoing related to the attempted manipulation of Libor by Barclays, but had responded to requests for information for various authorities related to the matter.

Beyond regulatory penalties and criminal charges, banks face a growing number of civil lawsuits from cities, companies and financial institutions claiming they were harmed by rate manipulation. Morgan Stanley recently estimated that the 11 global banks linked to the Libor scandal may face $14 billion in regulatory and legal settlement costs through 2014.

In the United States, the regulatory investigation is being led by the Commodity Futures Trading Commission, which has made the Libor probe one of its top priorities.

(Reporting by Matthew Goldstein and Jennifer Ablan in New York and Philipp Halstrick in Frankfurt, with additional reporting by Emily Flitter in New York and Aruna Viswanatha in Washington, D.C.; Editing by Alwyn Scott and Maureen Bavdek)

Tuesday, July 17, 2012

HSBC Allowed Drug and Terrorism Money Laundering


HSBC Allowed Drug Money Laundering, Apologizes: Senate

http://economictimes.indiatimes.com/news/international-business/hsbc-allowed-drug-money-laundering-apologizes-senate/articleshow/15021701.cms

WASHINGTON: HSBC Holdings Plc put itself at the mercy of the US Senate on Tuesday, acknowledging shortcomings in its anti-money laundering operations and revealing the resignation of a global executive.

David Bagley, a top compliance executive at HSBC since 2002, told a Senate investigative panel that he would step down, after the panel released a scathing report calling out a "pervasively polluted" culture at the bank.

The Senate report, which came after a year-long inquiry, said the bank had routinely acted as a financier to clients routing funds from the world's most dangerous corners, including Mexico, Iran and Syria.

Tuesday, February 21, 2012

US$15 TRILLION ENDS UP AT THE ROYAL BANK OF SCOTLAND


I came across this strange tale by Lord James on the theft of assets from one of Indonesia's richest men by Timothy Geither and Alan Greenspan and the subsequent incoming wire transfers for 15 trillion dollars to England. That's more money than the entire USA national deficit budget! These numbers are so huge its hard for a working man to wrap their heads around it. But the inability to wrap one's mind around the sum involved does not make it untrue. But I'll let Lord James relate the tale in the delightful English manner that I could never duplicate on my own:



------------------------------

House of Lords

Lords Chamber Meeting started on Thursday 16 February at 11.04am. Ended at 6.39pm

Lord James of Blackheath (Conservative)


My Lords, I hope the minute that that has taken has not come off my time. I do not wish noble Lords to get too encouraged when I start with my conclusions but I will not sit down when I have made them. I will then give the evidence to support them and, I hope, present the reasons why I want support for an official inquiry into the mischief I shall unfold this afternoon. I have been engaged in pursuit of this issue for nearly two years and I am no further forward in getting to the truth.

There are three possible conclusions which may come from it. First, there may have been a massive piece of money-laundering committed by a major Government who should know better. Effectively, it undermined the integrity of a British bank, the Royal Bank of Scotland, in doing so. The second possibility is that a major American department has an agency which has gone rogue on it because it has been wound up and has created a structure out of which it is seeking to get at least €50 billion as a pay-off. The third possibility is that this is an extraordinarily elaborate fraud, which has not been carried out, but which has been prepared to provide a threat to one Government or more if they do not make a pay-off. These three possibilities need an urgent review.

In April and May 2009, the situation started with the alleged transfer of $5 trillion to HSBC in the United Kingdom. Seven days later, another $5 trillion came to HSBC and three weeks later another $5 trillion. A total of $15 trillion is alleged to have been passed into the hands of HSBC for onward transit to the Royal Bank of Scotland. We need to look to where this came from and the history of this money. I have been trying to sort out the sequence by which this money has been created and where it has come from for a long time.

It starts off apparently as the property of Yohannes Riyadi, who has some claims to be considered the richest man in the world. He would be if all the money that was owed to him was paid but I have seen some accounts of his showing that he owns $36 trillion in a bank. It is a ridiculous sum of money. However, $36 trillion would be consistent with the dynasty from which he comes and the fact that it had been effectively the emperors of Indo-China in times gone by. A lot of that money has been taken away from him, with his consent, by the American Treasury over the years for the specific purpose of helping to support the dollar.

Mr Riyadi has sent me a remarkable document dated February 2006 in which the American Government have called him to a meeting with the Federal Reserve Bank of New York, which is neither the Federal Reserve nor a bank. It is a bit like "Celebrity Big Brother". It has three names to describe it and none of them is true. This astonishing document purports to have been a meeting, which was witnessed by Mr Alan Greenspan, who signed for the Federal Reserve Bank of New York of which he was chairman, as well as chairman of the real Federal Reserve in Washington. It is signed by Mr Timothy Geithner as a witness on behalf of the International Monetary Fund. The IMF sent two witnesses, the other being Mr Yusuke Horiguchi. These gentlemen have signed as witnesses to the effect that this deal is a proper deal.

There are a lot of other signatures on the document. I do not have a photocopy; I have an original version of the contract.

Under the contract, the American Treasury has apparently got the Federal Reserve Bank of New York to offer to buy out the bonds issued to Mr Riyadi to replace the cash which has been taken from him over the previous 10 years. It is giving him $500 million as a cash payment to buy out worthless bonds. That is all in the agreement and it is very remarkable. Establishing whether I have a correct piece of paper is just two phone calls away-one to Mr Geithner and one to Mr Greenspan, both of whom still prosper and live. They could easily confirm whether they signed it. Mr Riyadi, by passing these bonds over, has also put at the disposal of the US Treasury the entire asset backing which he was alleged to have for the $15 trillion. I have a letter from the Bank of Indonesia which says that the whole thing was a pack of lies. [stating] He did not have the 750,000 tonnes of gold which was supposed to be backing it; he had only 700 tonnes. [it claims] This is a piece of complete fabrication.

Finally, I have a letter from Mr Riyadi himself, who tells me that he was put up to do this, that none of it is true, and that he has been robbed of all his money. I am quite prepared to recognise that one of the possibilities is that Mr Riyadi is himself putting this together as a forgery in order to try to win some recovery. But it gets more complicated than that because each of the $5 trillion payments that came in has been acknowledged and receipted by senior executives at HSBC and again receipted by senior executives at the Royal Bank of Scotland. I have a set of receipts for all of this money. Why would any bank want to file $5 trillion-worth-$15 trillion in total-of receipts if the money did not exist? The money was first said to have come from the Riyadi account to the Federal Reserve Bank of New York and from there it was passed to JP MorganChase in New York for onward transit to London. The means of sending it was a SWIFT note which, if it was genuine, ought to have been registered with the Bank of England.

When this came about, I took it to my noble friend Lord Strathclyde and asked what we should do with it. He said, "Give it to Lord Sassoon. He is the Treasury". So I did, and my noble friend Lord Sassoon looked at it and said immediately, "This is rubbish. It is far too much money. It would stick out like a sore thumb and you cannot see it in the Royal Bank of Scotland accounts". He went on to say, "The gold backing it is ridiculous. Only 1,507 tonnes of gold has been mined in the history of the world, so you cannot have 750,000 tonnes". That is true. The third thing he said was, "It is a scam", and I agree with him. The problem is that at that point we stopped looking, but we should have asked what the scam was instead of just nodding it off.

We have never resolved it. Today, I have this quite frightening piece of paper, which is my justification for bringing it into this meeting. It is available on the internet and I am astonished that it has not already been unearthed by the Treasury because every alarm bell in the land should be ringing if it has. It is from the general audit office of the Federal Reserve in Washington-the real Federal Reserve-and its audit review to the end of July 2010 on the Federal Reserve Bank of New York. It has on it some 20 banks listed to which $16.115 trillion is outstanding in loans. That is the sore thumb that was being looked for by my noble friend Lord Sassoon. But more particularly there are two other interesting things. The first is that Barclays Bank has $868 billion of loan, and the Royal Bank of Scotland has $541 billion, in which case one has to ask a question, because they could have earned back in three weeks their entire indebtedness and could pay off the taxpayers of Britain. Why have they not done so and could we please ask them to put a cheque in the post tonight for the whole $46 billion?

The next thing that is wrong with it is that every bank on this list, without exception, is an MTN-registered bank, which means that they are registered to use medium-term notes to move funds between themselves with an agreed profit-share formula, in which case these banks are investing this money and, most extraordinarily, not a penny of interest does the Federal Bank of New York want paid on that vast amount, $16 trillion. Anyone who knows what the IMF rules are will immediately smell a rat. The IMF has very strict rules for validating dodgy money. There are two ways of doing it. You either pass it through a major central bank like the Bank of England, which apparently refused to touch this, or you put it through an MTN-trading bank, which is then able to use the funds on the overnight European MTN trading market where they can earn between 1 per cent and 2.5 per cent profit per night. The compound interest on that sum is huge. If it is genuine, a vast profit is being made on this money somewhere.

I believe that this is now such an important issue that I have put everything that I have got on the subject on to a 104-megabyte memory thumb. I want the Government to take it all, put it to some suitable investigative bureau and find out the truth of what is going on here, because something is very seriously wrong. Either we have a huge amount of tax uncollected on profits made or we have a vast amount of money festering away in the European banking system which is not real money, in which case we need to take it back. I ask for an investigation and for noble Lords to support my plea.

Hansard source (Citation: HL Deb, 16 February 2012, c1016)

Update: 2/26/12 A very interesting commentary on this speech by Lord James can be found here:
http://sirratatap.com/category/banking/2-19-12-corrupt-banking-at-the-highest-levels/