I've just published a blog written by Robert Palmer of Global Witness referring to a Reuters report on systemic, and Reuters alleges, deliberate failure of money laundering regulation at HSBC. The implication is clear. Reuters say:
In some of the documents [obtained from US prosecutor's offices], prosecutors allege that HSBC intentionally flouted the law. The bank created an operation that was a "systemically flawed sham paper-product designed solely to make it appear that the Bank has complied" with the Bank Secrecy Act and is able to detect money laundering, wrote William J. Ihlenfeld II, U.S. Attorney for the Northern District of West Virginia, in a draft of a 2010 letter addressed to Justice Department officials.
Now, let's look at the official government CV of the Rev Lord Stephen Green. It says:
Lord Green was appointed Minister of State for Trade and Investment on 11 January 2011.
Lord Green began his career with the British Government's Ministry of Overseas Development. In 1977, he joined McKinsey & Co Inc, management consultants, with whom he undertook assignments in Europe, North America and the Middle East.
He joined The Hongkong and Shanghai Banking Corporation Limited in 1982 with responsibility for corporate planning activities, and, in 1985, was put in charge of the development of the bank's global treasury operations. In 1992, he became Group Treasurer of HSBC Holdings plc, with responsibility for the HSBC Group's treasury and capital markets businesses globally.
In March 1998, he was appointed to the Board of HSBC Holdings plc as Executive Director, Investment Banking and Markets responsible for the investment banking, private banking and asset management activities of the Group. He assumed additional responsibility for the Group's corporate banking business in May 2002. He became Group Chief Executive on 1 June 2003 and Group Chairman on 26 May 2006. He was a director of HSBC Bank plc, The Hongkong and Shanghai Banking Corporation Limited and of HSBC North America Holdings Inc.
So we have a UK government trade minister who was responsible for investment banking, private banking, asset management activities and the corporate banking business of HSBC during the period the prosecutors are looking at. He was also chair of its Swiss private bank, I would add. Those prosecutors are saying this bank ran a sham compliance regime according to Reuters.
And Stephen Green's still in office?
How, I would ask, can that be?
OK, he's not guilty until proven so - and he may have a defence. But that's not the standard that applies in public life - and if it happened on his watch in the bank candidly he's responsible for it even if he did not know - that's why companies have directors who have the duty to stop such things happening. Fail and it's your fault. That's why they're supposedly paid so much.
So what's happening here?
And why is it that it only seems like the Independent has covered this story in the UK? Isn't that weird?
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I understand that Green is being suggested as a possible candidate for the Governor of the Bank of England. Surely this cannot be allowed to happen given his involvement in the above?
Probably it was part of his CV when applying for the “job”.
At least he will have experience relative to the job of governor !
Richard you could just as easily ask how we can have a man in charge of HMRC who presides over his organisation ignoring the PAYE rules that has allowed the massive growth of avoidance of payroll obligations even within the civil service.
The answer is the same, and your book makes the point very well. This government does not care for regulation, pays lip service to the enforcement of it and is very happy for its supporters to push the rules as far as the lax regulators will allow them. Knowing all the time they can screw the ordinary tax payers of this country to make up the shortfalls from their supporters that their policies are designed to generate for the benefit of their own.
Its the current manifestation of the buccanneering spirit that built the empire, and they will take their plunder from wherever they can get it.
This report by Reuters has exposed some unsavoury activity in the banking world and it is worth asking why. Knowing the very close links between Reuters and certain international bankers, may I suggest that this is an act of sabotage – an act of throwing a spanner in the works of a competitor who has delved into a highly profitable area of business which they may want to keep for themselves.
This has long been covered in “Private Eye”, who have exposed Green’s unsavoury past over several months
http://thosebigwords.forumcommunity.net/?t=47596654&p=333640483
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Of course if something questionable happened purely in his role as a Minister he presumably would not be responsible for it, even if he did not know, and would have no duty to stop things happening, as David Cameron seems to believe in the case of the present Minister for Culture Media and Sport and the former Defence Minister. Fail to meet the Ministerial Code and it’s not necessarily your fault. You get to blame and sack some Special Advisor.
I can understand the Govt accepting his rather dodgy business career & assuming that his undoubted talents outweigh his little “peccadiloes”. (I don’t agree, but I understand).
How can the Church of England say it accepts his rather dodgy business career ? He is meant to be a Reverend FGS ! Is the CoE completely insanse !
This seems utter lunacy. If the church can’t be pure, who can be ?