Did We Just Find Someone to Take On the Banks?

Did We Just Find Someone to Take On the Banks?

To see how the federal government has pursued money-laundering cases against big banks over their dealings with Iran and other countries under U.S. trade sanctions, consider what happened when Barclays Plc (BARC) and the Justice Department were required to file reports describing the U.K. bank’s cooperation under a settlement in 2010.

The deadline came and went. Barclays and the Justice Department failed to comply, infuriating U.S. District Judge Emmet Sullivan of Washington, who had ordered that the reports be filed. “I am amazed that with all the legal talent before the court that no one opened the order to read it,” he said. A Justice Department attorney, Kevin Gerrity, told the judge he couldn’t explain the lapse. Before approving Barclays’s deferred-prosecution agreement, Sullivan called it a “sweetheart deal.” Barclays paid $298 million, its core business was unscathed, and no executives were charged.

Standard Chartered Plc (STAN) can only dream of having such a light touch for an adversary. This week, the New York State Department of Financial Services threatened to revoke Standard Chartered’s state banking license — far more serious than a mere fine — after accusing the U.K. bank of using its New York office to illegally launder $250 billion for Iranian financial institutions, including Iran’s central bank.

Refreshing Change

Although it’s hard to imagine the department’s superintendent, Benjamin Lawsky, carrying out his threat, it’s refreshing to see anyone in a position of authority even go through the motions of fully enforcing the law against a big bank. Lawsky, 42, has every bit as much standing to pursue such a case as his counterparts in the federal government do.

Rest here…



5 Responses to “Did We Just Find Someone to Take On the Banks?”
  1. Bobbi Swann says:

    Yes, his counterparts in Washington have the same authority but they do nothing! We will see where this leads….

  2. keepon says:

    all Kibuki so far.

    Remember how we all made fools of ourservles writing to Schneiderman? Remember how everyone applauded this president’s sotu speech?

    just alotta talk. just more fraud?

  3. Herman Vergara says:

    I hope he can stop the HSBC Bank USA “Money Laundering Operations”.

  4. Joi says:

    Let’s see what happens. Or is it just talk like everyone else has been doing.

  5. talktotennessee says:

    They neutered Eliot Spitzer for taking on the banks didn’t they. Always believed his downfall was because someone wanted to him out of the way and instead of paying off, they found the opportune ideal way to handle that deal. Banks have become so powerful that the Fed, administration and Washington either pander to them or ignore as long as a little money crosses the divide to pave the path to leave them alone. Congress pandering to Jamie Dimon was enough to make one ill. All the players have their day, a little publicity and a buck or two, all will be forgiven and it will be business as usual. All the posturing is just to get ready for some type of payoff, which believe me NEVER trickles down to the people who get hurt!
    Move along, nothing to see here I predict.

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