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Outrageous HSBC Settlement Proves the Drug War is a Joke

Discussion in 'Cannabis News and Activism' started by t-dub, Dec 17, 2012.

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What is the point in the war on drugs?

  1. To punish minorities

    22.2%
  2. To punish "Evil" drug users/dealers

    38.9%
  3. To punish people (the slaves) in general

    27.8%
  4. To have a perpetual war we can never win

    55.6%
  5. To put the government's competition out of business

    44.4%
Multiple votes are allowed.
  1. t-dub

    t-dub Vapor Sloth

    Messages:
    4,697
    Location:
    Oregon
    This article absolutely nails the establishments role in the drug war. We the slaves get our lives ruined, the bankers, get their bonuses retracted . . . :mad:

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    Outrageous HSBC Settlement Proves the Drug War is a Joke

    Taibblog

    by: Matt Taibbi

    If you've ever been arrested on a drug charge, if you've ever spent even a day in jail for having a stem of marijuana in your pocket or "drug paraphernalia" in your gym bag, Assistant Attorney General and longtime Bill Clinton pal Lanny Breuer has a message for you: Bite me.

    Breuer this week signed off on a settlement deal with the British banking giant HSBC that is the ultimate insult to every ordinary person who's ever had his life altered by a narcotics charge. Despite the fact that HSBC admitted to laundering billions of dollars for Colombian and Mexican drug cartels (among others) and violating a host of important banking laws (from the Bank Secrecy Act to the Trading With the Enemy Act), Breuer and his Justice Department elected not to pursue criminal prosecutions of the bank, opting instead for a "record" financial settlement of $1.9 billion, which as one analyst noted is about five weeks of income for the bank. The banks' laundering transactions were so brazen that the NSA probably could have spotted them from space. Breuer admitted that drug dealers would sometimes come to HSBC's Mexican branches and "deposit hundreds of thousands of dollars in cash, in a single day, into a single account, using boxes designed to fit the precise dimensions of the teller windows." This bears repeating: in order to more efficiently move as much illegal money as possible into the "legitimate" banking institution HSBC, drug dealers specifically designed boxes to fit through the bank's teller windows. Tony Montana's henchmen marching dufflebags of cash into the fictional "American City Bank" in Miami was actually more subtle than what the cartels were doing when they washed their cash through one of Britain's most storied financial institutions.

    Though this was not stated explicitly, the government's rationale in not pursuing criminal prosecutions against the bank was apparently rooted in concerns that putting executives from a "systemically important institution" in jail for drug laundering would threaten the stability of the financial system. The New York Times put it this way:
    It doesn't take a genius to see that the reasoning here is beyond flawed. When you decide not to prosecute bankers for billion-dollar crimes connected to drug-dealing and terrorism (some of HSBC's Saudi and Bangladeshi clients had terrorist ties, according to a Senate investigation), it doesn't protect the banking system, it does exactly the opposite. It terrifies investors and depositors everywhere, leaving them with the clear impression that even the most "reputable" banks may in fact be captured institutions whose senior executives are in the employ of (this can't be repeated often enough) murderersand terrorists. Even more shocking, the Justice Department's response to learning about all of this was to do exactly the same thing that the HSBC executives did in the first place to get themselves in trouble – they took money to look the other way. And not only did they sell out to drug dealers, they sold out cheap. You'll hear bragging this week by the Obama administration that they wrested a record penalty from HSBC, but it's a joke. Some of the penalties involved will literally make you laugh out loud. This is from Breuer's announcement:

    Wow. So the executives who spent a decade laundering billions of dollars will have to partially defer their bonuses during the five-year deferred prosecution agreement? Are you fucking kidding me? That's the punishment? The government's negotiators couldn't hold firm on forcing HSBC officials to completely wait to receive their ill-gotten bonuses? They had to settle on making them "partially" wait? Every honest prosecutor in America has to be puking his guts out at such bargaining tactics. What was the Justice Department's opening offer – asking executives to restrict their Caribbean vacation time to nine weeks a year?​

    So you might ask, what's the appropriate financial penalty for a bank in HSBC's position? Exactly how much money should one extract from a firm that has been shamelessly profiting from business with criminals for years and years? Remember, we're talking about a company that has admitted to a smorgasbord of serious banking crimes. If you're the prosecutor, you've got this bank by the balls. So how much money should you take?

    How about all of it?How about every last dollar the bank has made since it started its illegal activity? How about you dive into every bank account of every single executive involved in this mess and take every last bonus dollar they've ever earned? Then take their houses, their cars, the paintings they bought at Sotheby's auctions, the clothes in their closets, the loose change in the jars on their kitchen counters, every last freaking thing. Take it all and don't think twice. And then throw them in jail.

    Sound harsh? It does, doesn't it? The only problem is, that's exactly what the government does just about every day to ordinary people involved in ordinary drug cases. It'd be interesting, for instance, to ask the residents of Tenaha, Texas what they think about the HSBC settlement. That's the town where local police routinely pulled over (mostly black) motorists and, whenever they found cash, offered motorists a choice: They could either allow police to seize the money, or face drug and money laundering charges.

    Or we could ask Anthony Smelley, the Indiana resident who won $50,000 in a car accident settlement and was carrying about $17K of that in cash in his car when he got pulled over. Cops searched his car and had drug dogs sniff around: The dogs alerted twice. No drugs were found, but police took the money anyway. Even after Smelley produced documentation proving where he got the money from, Putnam County officials tried to keep the money on the grounds that he could have used the cash to buy drugs in the future.

    Seriously, that happened. It happens all the time, and even Lanny Breuer's own Justice Deparment gets into the act. In 2010 alone, U.S. Attorneys' offices deposited nearly $1.8 billion into government accounts as a result of forfeiture cases, most of them drug cases. You can see the Justice Department's own statistics right here:

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    If you get pulled over in America with cash and the government even thinks it's drug money, that cash is going to be buying your local sheriff or police chief a new Ford Expedition tomorrow afternoon.
    And that's just the icing on the cake. The real prize you get for interacting with a law enforcement officer, if you happen to be connected in any way with drugs, is a preposterous, outsized criminal penalty. Right here in New York, one out of every seven cases that ends up in court is a marijuana case.

    Theres more to the article . . .
     
    ShipDit, Gunky, Vicki and 5 others like this.
  2. Tweek

    Tweek Well-Known Member

    Messages:
    6,142
    It's all about...

     
    t-dub, ShipDit, Vicki and 1 other person like this.
  3. OO

    OO Technical Skeptical

    Messages:
    1,167
    Location:
    Paraphernalia Museum
    While I'm in complete agreement on this topic, I do not agree with many of the views put forth by Slate.

    This is quite egregious.
     
  4. t-dub

    t-dub Vapor Sloth

    Messages:
    4,697
    Location:
    Oregon
    Please keep voting, I would like a higher sample rate on this if possible . . . I think . . . :\
     
  5. ShipDit

    ShipDit 1%

    Messages:
    1,065
    Location:
    The great Mid West Wasteland
    When a government fails it's people,it's the job of The People to overthrow that government.
    Lock and load motherfuckers.
     
  6. Gonzo

    Gonzo Slightly Stoopid

    Messages:
    798
    I would have voted but my opinion was not one of the options.

    I believe it's all about money personally. There are a select few that make large profits based on the number of people incarcerated.
     
    Roger D and t-dub like this.
  7. Roger D

    Roger D Vapor Wizard

    Messages:
    1,140
    Its because of theses disgusting pigs and criminals that have the power, this situation is a joke

    Come on ! This is so ridiculous.. We are talking about a dry flower. A fucking dry flower. Get the fuck out and let people do whatever they want about their lives.
     

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