…with a dirty history from the colonial days engaging in the opium war right to the present in money laundering of drug money and a conveyor of tax evasion for the crooks…and who knows what else
HSBC: the bank with a shameful past and scandalous present
Post Globalization Initiative presents an article by Eric Toussaint about bank HSBC.
The British bank HSBC (Hong Kong and Shanghai Banking Corporation) employs 260, 000 people, has offices in 75 countries, and 54 million customers. From its earliest days, it has been involved in the international narcotics trade. It was founded in the wake of the British victories in the Opium Wars (1839-1842 and 1856-1860) against China. These two wars were very important to the strengthening of the British Empire and the century and a half waning of China. Through the Opium Wars, the British Empire forced China to accept opium importations coming from British India. China tried to oppose this commerce, but British arms, backed by Washington, proved stronger. London established a colony in Hong Kong in 1865, where HSBC was created by a Scottish merchant specializing in the opium trade— the basis of 70% of Hong Kong trade with the Indies.
As of this time, the history of the bank has been closely related to the interests of British foreign policy and ruling classes in Asia. After 1949 and the victory of Mao’s revolution in China, HSBC retreated to Honk Kong, which remained a British colony. Between 1980 and 1997, it developed its US and European activities, and moved its headquarters to London in 1993 in anticipation of the transfer of Hong Kong sovereignty back to China in 1997. HSBC remains indispensable to Hong Kong finance, still issuing 70% of Hong Kong dollars. Hong Kong is now one of the key links in the money laundering operations set up by the new Chinese ruling classes.
In addition to laundering money from drugs and terrorism, HSBC has been incriminated in other affairs. It manipulated exchange markets (revealed in 2013, concerning a market of $5.3 trillion per day), and rigged the LIBOR interbank interest rate. It was also involved in the abusive and fraudulent sale of interest rate derivatives, and the abusive and fraudulent sale of insurance products to the British public and small companies (the Financial Services Authority prosecuted HSBC for having sold policies that were of little or no value). Finally, it sold Mortgage Backed Securities abusively in the US, rigged gold and silver prices (revealed in Jan. Feb. 2014) , and assisted major tax evaders.
There is true symbiosis between big banks and the ruling classes, just as there are permanent links between politicians and big business, particularly in finance.
The HSBC group should be shut down, its directors dismissed without indemnities, and along with the major shareholders, they should answer for their crimes before the courts and be severely condemned to periods of loss of liberty and of community service. HSBC should be split into smaller units under public control with a strictly defined public service objective.
Remaining franchise is robust, but has scope to be rocked by further revelations of wrongdoing
Tax avoidance? At a Swiss private bank? One is shocked. Shocked! HSBC has admitted to “compliance and control failings” at a Swiss offshoot, following allegations that the subsidiary helped foreigners avoid tax. This has been the historic mission of Swiss private banks. However, there is a subtler theme here: of a colonial legacy that is both a blessing and a curse to the UK’s largest bank. – FT
|Politicians press for HSBC clampdown|
|US and UK react over detailed allegations over tax-dodging clients at Swiss banking operation – FT|
|HSBC problems reflect those in the sector|
|Governance within universal banking is the central problem, writes Philip Augar – FT|
|Timeline: History of HSBC controversies|
|The bank has been caught up in a swirl of disputes over its practices|
Whistleblower: AG nominee in $1 billion Obama cover-up
Read more at http://www.wnd.com/2015/02/whistleblower-ag-nominee-in-1-billion-obama-cover-up/#Q7Ww8uyCrHwxUWBG.99
London-based HSBC is likely to face new investigations in the UK and the US, after allegations its Swiss branch was assisting sanctioned countries and drug cartels in money laundering and tax evasion – RT