HALISTER1: Waters Urges DOJ to Pursue Prosecuting HSBC Employees

Waters Urges DOJ to Pursue Prosecuting HSBC Employees

(Bloomberg) -- Top Democrat on House Financial Services Cmte sends letter to Atty Gen. Loretta Lynch urging her to revoke delayed prosecution agreement over alleged HSBC money laundering, statement says.
  • Rep. Maxine Waters says HSBC in 2012 avoided criminal prosecution for “failing to prevent money laundering by international drug cartels” and moving “hundreds of millions of dollars to several countries under U.S. sanctions”
  • NOTE: Co. agreed to 5-year deferment for prosecution and instead paid $1.9b fine and promised to reform compliance efforts with help of hired outside monitor
  • When agreement was announced, “I was one of the many who believed that the penalties were insufficient to deter future financial crime” and now am “troubled by reports” that HSBC’s compliance program is “ineffective at catching and stopping federal banking law violations”
  • Related: HSBC Allowed to Skirt Law With No Repercussions: Sen. Vitter
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
HSBA LN (HSBC Holdings PLC)
1025593D US (United States House Committee on Financial Services Committee)

People
Maxine Waters (United States House of Representatives)
Loretta Lynch (United States Department of Justice)

Topics
First Word DC - Foreign Policy

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