TOO BIG TO JAIL: INSIDE THE OBAMA JUSTICE DEPARTMENT’S DECISION NOT TO HOLD WALL STREET ACCOUNTABLE
REPORT PREPARED BY THE REPUBLICAN STAFF OF THE COMMITTEE ON FINANCIAL SERVICES, U.S. HO– USE OF REPRESENTATIVES
Executive Summary
In March 2013, the Committee on Financial Services (Committee) initiated a review of the U.S. Department of Justice’s (DOJ’s) decision not to prosecute HSBC Holdings Plc. and HSBC Bank USA N.A. (together with its affiliates, HSBC) or any of its executives or employees for serious violations of U.S. anti-money laundering (AML) and sanctions laws and related offenses. The Committee’s efforts to obtain relevant documents from DOJ and the U.S. Department of the Treasury (Treasury) were met with non-compliance, necessitating the issuance of subpoenas to both agencies. Approximately three years after its initial inquiries, the Committee finally obtained copies of internal Treasury records showing that DOJ has not been forthright with Congress or the American people concerning its decision to decline to prosecute HSBC. Specifically, these documents show that:
- Senior DOJ leadership, including Attorney General Holder, overruled an internal recommendation by DOJ’s Asset Forfeiture and Money Laundering Section to prosecute HSBC because of DOJ leadership’s concern that prosecuting the bank would have serious adverse consequences on the financial system.
- Notwithstanding Attorney General Holder’s personal demand that HSBC agree to DOJ’s “take-it-or-leave-it” deferred prosecution agreement deal by November 14, 2012, HSBC appears to have successfully negotiated with DOJ for significant alterations to the DPA’s terms in the weeks following the Attorney General’s deadline.
- DOJ and federal financial regulators were rushing at what one Treasury official described as “alarming speed” to complete their investigations and enforcement actions involving HSBC in order to beat the New York Department of Financial Services.
- In its haste to complete its enforcement action against HSBC, DOJ transmitted settlement numbers to HSBC before consulting with Treasury’s Office of Foreign Asset Control (OFAC) to ensure that the settlement amount accurately reflected the full degree of HSBC’s sanctions violations.
- The involvement of the United Kingdom’s Financial Services Authority in the U.S. government’s investigations and enforcement actions relating to HSBC, a British-domiciled institution, appears to have hampered the U.S. government’s investigations and influenced DOJ’s decision not to prosecute HSBC.
- Attorney General Holder misled Congress concerning DOJ’s reasons for not bringing a criminal prosecution against HSBC.
- DOJ to date has failed to produce any records pertaining to its prosecutorial decision making with respect to HSBC or any large financial institution, notwithstanding the Committee’s multiple requests for this information and a congressional subpoena requiring Attorney General Lynch to timely produce these records to the Committee.
- Attorney General Lynch and Secretary Lew remain in default on their legal obligation to produce the subpoenaed records to the Committee.
- DOJ’s and Treasury’s longstanding efforts to impede the Committee’s investigation may constitute contempt and obstruction of Congress.
The Committee is releasing this report to shed light on whether DOJ is making prosecutorial decisions based on the size of financial institutions and DOJ’s belief that such prosecutions could negatively impact the economy.
Report can be downloaded here…
And viewed in full below…
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4closureFraud.org
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TOO BIG TO JAIL: INSIDE THE OBAMA JUSTICE DEPARTMENT’S DECISION NOT TO HOLD WALL STREET ACCOUNTABLE
So if NOTHING is being done to the banks for all the flat out deceit/stealing/lying/DESTRUCTION OF AMERICAN DREAM due to 100% GREED,then ALL in foreclosure should receive SAME PARDON..2006=2016 #VOIDMORTGAGES..HONESTLY what is the message here to the AMERICAN CONSUMER…#2Big2jailDESTROYED/KILLED AMERICAN DREAM:(
Really?
The “fine print” at the bottom of the cover page is the first “tell”:
“This report has not been officially adopted by the Committee on Financial Services and may not necessarily reflect the views of its Members.”
Unofficial, and not reflective. Then what is the point?
The point may be the heading of, and the last paragraph:
“The American People and the Congress Deserve to Know the Truth About the Merits of DOJ’s Decision Not to Prosecute HSBC or Any of Its Executives or Employees for Violating U.S. AML and Sanctions Laws.”
That looks like an excuse of “We didn’t know, so we couldn’t do anything, and it isn’t our fault.”
Buddy Ebsen, actor, and writer of fiction, is quoted as having said:
“Writing fiction, there are no limits to what you write as long as it increases the value of the paper you are writing on.”
Measured against that low standard this report fails.