Wall Street Is Laundering Drug Money and Getting Away with It

[9delta]

Wall Street Is Laundering Drug Money and Getting Away with It
Wall Street has been caught laundering massive amounts of drug money. So why isn't anybody being punished?
July 16, 2010 |

This piece originally appeared at Campaign for America's Future. It has been expanded for this publication.

Too-big-to-fail is a much bigger problem than you thought. We've all read damning accounts of the government saving banks from their risky subprime bets, but it turns out that the Wall Street privilege problem is far more deeply ingrained in the U.S. legal system than the simple bailouts witnessed in 2008. America's largest banks can engage in flagrantly criminal activity on a massive scale and emerge almost completely unscathed. The latest sickening example comes from Wachovia Bank: Accused of laundering $380 billion in Mexican drug cartel money, the financial behemoth is expected to emerge with nothing more than a slap on the wrist thanks to an official government policy which protects megabanks from criminal charges.

Bloomberg's Michael Smith has penned a devastating expose detailing Wachovia's drug-money operations and the government's twisted response. The bank was moving money behind literally tons of cocaine from violent drug cartels. It wasn't an accident. Internal whistleblowers at Wachovia warned that the bank was laundering drug money, higher-ups at the bank actively looked the other way in order to score bigger profits, and the U.S. government is about to let everyone involved get off scott free. The bank will not be indicted, because it is official government policy not to prosecute megabanks. From Smith's story:

No big U.S. bank . . . has ever been indicted for violating the Bank Secrecy Act or any other federal law. Instead, the Justice Department settles criminal charges by using deferred-prosecution agreements, in which a bank pays a fine and promises not to break the law again . . . . Large banks are protected from indictments by a variant of the too-big-to-fail theory. Indicting a big bank could trigger a mad dash by investors to dump shares and cause panic in financial markets.​

Wachovia was acquired by Wells Fargo in late 2008. The bank's penalty for laundering over $380 billion in drug money is going to be a promise not to ever do it again, and a $160 million fine. The fine is so small that Wachovia will almost certainly turn a profit on its drug financing business after legal costs and penalties are taken into account.

International authorities know the banker-drug-dealer connection goes well beyond Wachovia, but governments aren't doing anything about it. A 2009 report by the United Nations Office on Drugs and Crime found that most rules to prevent drug money laundering through banks are being violated. From the report:

"At a time of major bank failures, money doesn't smell, bankers seem to believe. Honest citizens, struggling in a time of economic hardship, wonder why the proceeds of crime – turned into ostentatious real estate, cars, boats and planes – are not seized."

In late 2009, the head of that U.N. office, Antonio Maria Costa, told the press that much interbank lending—short-term loans banks make to each other—was being supported by drug money. As financial markets froze up in 2007 and 2008, banks turned to drug cartels for cash. Without that drug money, many major banks might not have survived.


http://www.alternet.org/economy/147564/wall_street_is_laundering_drug_money

 

[Hash Zeppelin]

This is no surprise. what else do you do with billions of dollars? you cant go to the swiss banks as easy. they are too competent. Also you cant go to some small nothing country because your billions are more than there entire GNP. so where do you go. you go straight to the country where even the presidency is for sale.

...so instead of shutting huge the bank huge down, and hurting our financial system just do what china does in this situation. Take the people that are responsible and give them the death penalty, for treason. This is what we should have done with all of the crooked bankers. I bet if the government treated this as treason, and shot bernie madoff right in the fucking face that these problems with crooked bankers would have stopped. They are a bunch of white collar weenies that would fold if they thought they could actually get in trouble.

As of now, the worst thing that happens to these thieves is a slap on the wrist and some time in a private white collar prison. Let them suffer real consequence for robbing the country of a trillion dollars by holding our economy hostage with "too big to fail" bs, and then taking money from, and helping cartels that murder thousands of people. THAT IS TREASON in my book, and we should go ahead and give them the gas chamber, or at least lock them in a maximum security prison with a bunch of murders that come right out of the cartels they helped so they can see the kind of people they supported.

I bet you they rat out every cartel connection they ever had, cause they are a bunch of cowards, and will do anything to keep their money.

The problem in our financial system, comes from no consequences for crooked actions, and will not be fixed until we drop the hammer on these people, and take away there options. Dont give them any deals for being rats, and make examples of them. the American people will not tolerate a banking system that steals from them.

 

[Grendelkhan]

This is a big part of the problems with illegal drugs. The money has to go somewhere right? Many of the first Cartels where created with loans from the World Bank. These banks know exactly where this money is coming from and where its going. The banks are lending multi millions in loan at super high interest rates, that cartels then use that money to make more drugs. So as long as the banks for the world keep on doing this type of stuff then the "War on Drugs" is doomed. So basically it will never stop because even if they get a couple of them the basic nature of the banks is to go where the money is. Which they do and will continue to do so.
I read a bit about Bolivian cartels that where getting loans for growing banana's at 35% on the loans. They listed in the request for the loans all the lab equipment that they use to manufacture coke with and the bank never questioned any of it. Of course the loans where paid back in full with interest within 2 years. Now come on. The thought the banks will ever be moral is a joke.

 

[Hash Zeppelin]

^the cartels are the only competition for the major drug companies in the USA it would seem. But where do the drug companies get the opium from to go into there opiates.

It is not a conspiracy at all that the same families that own the majority of big Pharma also own The private prison system.

It would not surprise me if big banks, big pharma, big prison, and the cartels directly work together to keep the drug war going.

If this is so, then they all realize that there are sheep and there are shepherds in America and they cannot have both markets for them selves, all they can do is agree to help keep things illegal or heavily regulated, and split the 2 markets up. The prison systems role is to keep trapped once you are trapped in there jaws.

 

[Sam the Caveman]

The status quo banking system of today is criminal by its very nature.

I mean really, is fractional reserve banking in the least bit fair?

fractional reserve banking example;

I'm a bank, you want to borrow $100k
I can loan you $100k, even though I only have $10k (or less), at 6% interest (compounded) for 30 years.

Over 30 years, my $10k investment will return $206k, I'm a bank, this is what we do.

Forget money laundering, that money was actually earned, I couldn't give two shits about money laundering.

Fractional reserve banking is the real crime against humanity.

 

[Bacchus]

Who would loose the most if MJ became decrimed? Wall Street would. There are a LOT less strings attached to borrowing drug profits than bank loans.

 

[Preacher]

George Carlin basically has your sentiment Hash- he pointed out that if you really want to stop drug cartels, just take one rich white banker washing money and execute him live on TV. Drug distributors often don't fear death. Bankers sure the fuck do.

 

[Hash Zeppelin]

George Carlin is my Plato, Socrates and Aristotle all in one.

and he was right.

 

[robbiedublu]

The status quo banking system of today is criminal by its very nature.

I mean really, is fractional reserve banking in the least bit fair?

fractional reserve banking example;

I'm a bank, you want to borrow $100k
I can loan you $100k, even though I only have $10k (or less), at 6% interest (compounded) for 30 years.

Over 30 years, my $10k investment will return $206k, I'm a bank, this is what we do.

Forget money laundering, that money was actually earned, I couldn't give two shits about money laundering.

Fractional reserve banking is the real crime against humanity.

Then where does the 100k i'm borrowing actually come from?

Here's what big banks are doing now. Borrow billions from the fed and pay 0.5% interest, turn around and buy govt bonds ( ie. loan the $ back to the govt. ) that pay 2.5%. Do it enough times and you're making some real money.

 

[Hash Zeppelin]

^man that's crooked

 

[pearlemae]

Its simple, its all about the money, money, money, and GREED. The war on drugs will never end because there's to much money to be made on both sides of the war. The banksters want their profits and mega bonuses. GREED period.to the banks.

 

[Pythagllio]

It's amazing that there are still people convinced that the death penalty is effective. The heck with the centuries of evidence directly belying the claim, just like rabid prohibitionists ignore decades of failure, but insist that it works. People say there's no drugs in China, well where did they get those guys they put to death for world anti drug day at the end of last month? The only evidence that China offers is self serving statements made by proven liars. It's like the intelligence just clicks off and they'll take the word of Chaing Kai Shek because it suits their purpose.

Violence is never found on the path to peace.

 

[SpasticGramps]

No surprise here. Wall Street is the mafia and Wall Street owns Washington and has for 100+years. CIA runs the illegal drug trade and the money is laundered by Wall Street. They own everything and run everything. The system is corrupted to the very core. We've been scammed. We are being scammed. We will continue to be scammed until we wake up as a nation.

Only revolution will bring about change.

 

[Hash Zeppelin]

^The CIA has already been caught running drugs multiple times, and no one seems to care, or the people that do are dead. The CIA is even guilty of starting the heroin and crack epidemic in America. It isn't even a secret anymore. any one can go read the newly unclassified documents online. They were commissioned to do it by the executive branches of the time. I guess they decided not to ever stop.

The war is about control for the purpose of keeping making the richer, and making the poor poorer. It was originally intended to only keep the Black Panthers Down, but then the civil rights movement was successful, so they decided to just go after all poor people instead, and as everything does with the government is got bigger than ever intended.

This is no conspiracy or secret. that is why it is fucking sad. the majority of Americans are happy with the government interfering with your body and mind.

It is not only done through the drug war it is done though diet control, and water additives like way too much fluoride. As for the water part, the PH of my tap water is like 8.1, and I have tested it myself to see what is in it for myself. as for the diet part. The government subsidizes corn which is pretty worthless, but because is is subsidized it is in everything. even if just in the form of fake sugar. they have like 30 names for it to to keep you confused. this lack of proper diet makes people slugish and subservient, and really fucking fat. Just look Houston, it is the perfect example. it is the fattest city on the planet.

 

[SpasticGramps]

This is no conspiracy or secret.

Good post. It is actually all conspiracy though.

con·spir·a·cy


Law . an agreement by two or more persons to commit a crime, fraud, or other wrongful act.

It doesn't take much to make conspiracy. People are trained to think that people who think "conspiracy" are crazy. I wonder who trained them to think like that? I guess the people who have a vested interest in making sure that everyone believes nothing shady is going on at the highest levels at all times. Perhaps, the Wall Street and MIC owned Media Complex?

 

[Sam the Caveman]

Then where does the 100k i'm borrowing actually come from?

When you sign the promissory note to pay $100k, the bank then puts a + $100k book keeping entry (asset) on their books. Then they loan you back the money you just created for them. Their books are then balanced.

That's where the money comes from, and this is the normal way of banking.

Real crooks I tell ya, real crooks.

Money is created out of thin air based primarily on your ability to pay it back.

 

[Hash Zeppelin]

Good post. It is actually all conspiracy though.

It doesn't take much to make conspiracy. People are trained to think that people who think "conspiracy" are crazy. I wonder who trained them to think like that? I guess the people who have a vested interest in making sure that everyone believes nothing shady is going on at the highest levels at all times. Perhaps, the Wall Street and MIC owned Media Complex?

^ The DEA loves to use this definition, to bust people just for having an hps light in their house. They charge you with conspiracy to cultivate. I just dont see how the fuck that is ok, in the eyes of the most American people/or as many call sheepole.

When you sign the promissory note to pay $100k, the bank then puts a + $100k book keeping entry (asset) on their books. Then they loan you back the money you just created for them. Their books are then balanced.

That's where the money comes from, and this is the normal way of banking.

Real crooks I tell ya, real crooks.

Money is created out of thin air based primarily on your ability to pay it back.

^and this is an example where government regulation would be good. government has it's proper place many times, and this is one of them. That is not interfering with business that is protecting citizens from fraud. Protecting the citizens from evil thugs is its first job. Just because someone runs a bank and wears a tie doesn't mean they aren't a thug. The fraud business is said to be illegal, but it sure doesn't seem that way with the status quo being held in place.

 

[SpasticGramps]

I just dont see how the fuck that is ok, in the eyes of the most American people/or as many call sheepole.

Brainwashing your population is a necessity when operating a Fascist state. The Establishment puts people to sleep with a constant barrage of meaningless bullshit and lies. We've ended up sleepwalking right into our own demise. And in many cases voting for it.

Vladimir Lenin
“Fascism is capitalism in decay”

 

[Hash Zeppelin]

Fascism is any form of huge government in decay, that wants to maintain control. I don't like to sound this paranoid crazy, but after reading about the Holocaust, and visiting a concentration camp in germany, I realize how easy is was for them to accomplish such a huge atrocity, with out many people even knowing until it was already done. This is literally why the bill of rights is so important. It may only be a piece of paper, but it lets us know when to run, or fight. it lets us know what lines shouldn't be crossed by government for sure. It lets us know when we should be really pissed. The warning signs of facism are identified by the weakening of the bill of rights.


The German Jews had warning signs this was coming, but no one new they were warning signs because they had no bill of rights.
The Jews were demonized, and separated by the government.
Then their guns were taken away
then they were relocated to ghettos, so that they could be easily moved out of the populous to concentration camps. They said they put the ghettos next to the train track cause the land was cheap, but we know why they really did.

if they had a bill of rights they would have known to start running or shooting way earlier.

The bill of rights is like a shit storm warning system.

the drug war is the way around this.
they create a black market through laws to make drugs look violent. this causes fear.
Next demonize regular people (growers) for hurting no one.
then they add much much harsher penalties if there is a gun in your grow.
then they move you to a prison that is guaranteed to be inhumane.

other things America has revolutionized lately is the invasion of privacy with the patriot act. The T word (terrorist) is now scarier to White Christian Americans than the N word. They go on to make inaccurate and massive associations of pot to terrorism. Thus further demonizing us.

I come from a Jewish background, but am not the biggest supporter of Israel because the way they treat the Palestinians, but I understand why it the way it is. It is because never again will we be subjected to being treated as diseased cattle by evil power freaks.

 

[SpasticGramps]

Auschwitz is an incredibly disturbing place to visit.

No big U.S. bank . . . has ever been indicted for violating the Bank Secrecy Act or any other federal law. Instead, the Justice Department settles criminal charges by using deferred-prosecution agreements, in which a bank pays a fine and promises not to break the law again . . . .
​

http://www.alternet.org/economy/147564/wall_street_is_laundering_drug_money

Here is the problem right here. They are above the law. The law does not apply to them. It's a media dog and pony show for the public. They are punished just enough to placate the people so they think, "ok, maybe next time it will different." And the story disappears.

Kind of like Goldman Sachs helping orchestrate the mortgage crisis. They got slap on the wrist and one little dude takes the fall. It's the same story over and over again. The only reason the SEC was even allowed to go after Government Sachs is because Government Sachs told them too. Right when the Financial Reg bill was going through coincidentally. It does nothing more than give absolute power to the FED which is a private bank run by who??? Yep, Goldman Sachs people. The very definition of Fascism.