Banks Launder Money With Impunity

laundering moneyHSBC is a bank. They are also a money launderer. Last week the Senate subcommittee on investigations, part of the Senate Committee on Homeland Security and Government Affairs, issued a report (pdf) and held a hearing, U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History. Contained within is a laundry list, if we can use the pun, of HSBC evil doings and how they mechanically laundry money for drug cartels, terrorists and tax evaders.

This is over a decade past 9/11 and seemingly HSBC has been operating with impunity. One of the conduits for money laundering is correspondent banking. Correspondent banking is when one financial institution provides services to another financial institution to move funds, exchange currencies, cash monetary instruments, or carry out other financial transactions. Even though in 2002, correspondent banking was recognized as a primary method to fund terrorist activities, the doors have not been shut.

Correspondent accounts continue to provide a gateway into the U.S. financial system, and wrongdoers continue to abuse that entryway.

Below is what has been done since 9/11, yet correspondent banking is alive and well.

What Next on Financial Reform?

Since the Financial Reform bill passed the Senate, it will now go to conference committee to resolve the differences between the House and Senate versions. The New York Times has a graphic on the two bills, describing some of the differences and what is not in either version of the legislation, spreadsheet style.

Currently we do not know who the conferees are. They will be determined on Monday. Senator Kaufman:

The final Wall Street reform bill can't drift too far from the version passed Thursday night by the Senate, Sen. Ted Kaufman (D-Del.) warned Friday.

While there is no certainty in how conferees from the House and Senate might address differences between their two bills, Kaufman said, substantial changes could endanger the 60-vote majority needed to pass the bill in the upper chamber.

"There isn't a lot of wiggle room in the conference, in terms of changing what's in the Senate bill," Kaufman said Friday morning on CNBC.

The Budget - That Ultimate Credit Card Paulson Wants to Have

buy now!  pay later!

Buy Now! Pay Later!

That seems to be the motto of Hank Paulson's bail out demands.

Today the Budget office had a Federal Responses to Market Turmoil Committee hearing.  Peter Orszag, Director of the Congressional Budget Office, in my opinion, confirmed what the critics are saying, this is not a wise plan. But read more and you decide.

The infamous question pops up again and again, what did they know and when did they know it? So let's apply this question to the fiscal impact of the bail out proposal.

What we know so far?