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| HSBC avoided US money laundering charges because of 'market risk' fears | HSBC avoided US money laundering charges because of 'market risk' fears |
| (about 11 hours later) | |
| US officials refused to prosecute HSBC for money laundering in 2012 because of concerns within the Department of Justice that it would cause a "global financial disaster", a report says. | US officials refused to prosecute HSBC for money laundering in 2012 because of concerns within the Department of Justice that it would cause a "global financial disaster", a report says. |
| A US Congressional report revealed UK officials, including Chancellor George Osborne, added to pressure by warning the US it could lead to market turmoil. | A US Congressional report revealed UK officials, including Chancellor George Osborne, added to pressure by warning the US it could lead to market turmoil. |
| The report alleges the UK "hampered" the probe and "influenced" the outcome. | The report alleges the UK "hampered" the probe and "influenced" the outcome. |
| HSBC was accused of letting drug cartels use US banks to launder funds. | HSBC was accused of letting drug cartels use US banks to launder funds. |
| The bank, which has its headquarters in London, paid a $1.92bn (£1.48bn) settlement but did not face criminal charges. No top officials at HSBC faced any charges. | |
| 'Serious implications' | 'Serious implications' |
| The report says: "George Osborne, Chancellor of the Exchequer, the UK's chief financial minister, intervened in the HSBC matter by sending a letter to Federal Reserve Chairman Ben Bernanke... to express the UK's concerns regarding US enforcement actions against British banks." | The report says: "George Osborne, Chancellor of the Exchequer, the UK's chief financial minister, intervened in the HSBC matter by sending a letter to Federal Reserve Chairman Ben Bernanke... to express the UK's concerns regarding US enforcement actions against British banks." |
| The letter said that prosecuting HSBC could have "very serious implications for financial and economic stability, particularly in Europe and Asia". | The letter said that prosecuting HSBC could have "very serious implications for financial and economic stability, particularly in Europe and Asia". |
| Justice Department spokesman Peter Carr said a series of factors were considered when deciding how to resolve a case, including whether there may be "adverse consequences for innocent third parties, such as employees, customers, investors, pension holders and the public". | Justice Department spokesman Peter Carr said a series of factors were considered when deciding how to resolve a case, including whether there may be "adverse consequences for innocent third parties, such as employees, customers, investors, pension holders and the public". |
| The report also accuses former US Attorney General Eric Holder of misleading Congress about the decision. | The report also accuses former US Attorney General Eric Holder of misleading Congress about the decision. |
| The report says Mr Holder ignored the recommendations of more junior staff to prosecute HSBC because of the bank's "systemic importance" to the financial markets. | The report says Mr Holder ignored the recommendations of more junior staff to prosecute HSBC because of the bank's "systemic importance" to the financial markets. |
| 'Misleading comments' | 'Misleading comments' |
| "Rather than lacking adequate evidence to prove HSBC's criminal conduct, internal Treasury documents show that DOJ [Department of Justice] leadership declined to pursue [the] recommendation to prosecute HSBC because senior DOJ leaders were concerned that prosecuting the bank 'could result in a global financial disaster'," the report said. | "Rather than lacking adequate evidence to prove HSBC's criminal conduct, internal Treasury documents show that DOJ [Department of Justice] leadership declined to pursue [the] recommendation to prosecute HSBC because senior DOJ leaders were concerned that prosecuting the bank 'could result in a global financial disaster'," the report said. |
| Instead, the Department of Justice and HSBC reached the settlement, which some politicians criticised for being too lenient. | Instead, the Department of Justice and HSBC reached the settlement, which some politicians criticised for being too lenient. |
| Testifying before Congress in 2013 Mr Holder said the size of some financial institutions can make it difficult to bring criminal charges. | Testifying before Congress in 2013 Mr Holder said the size of some financial institutions can make it difficult to bring criminal charges. |
| He later tried to clarify those remarks telling Congress: "If we find a bank or a financial institution that has done something wrong, if we can prove it beyond a reasonable doubt, those cases will be brought." | He later tried to clarify those remarks telling Congress: "If we find a bank or a financial institution that has done something wrong, if we can prove it beyond a reasonable doubt, those cases will be brought." |
| Congress's report deemed these comments to be misleading in light of emails from Treasury Department staff that recommended criminal charges. | Congress's report deemed these comments to be misleading in light of emails from Treasury Department staff that recommended criminal charges. |
| Mexican cartel | Mexican cartel |
| The 2012 settlement with HSBC detailed how the bank violated US sanctions by conducting business for customers in Iran, Libya, Sudan, Burma and Cuba. | The 2012 settlement with HSBC detailed how the bank violated US sanctions by conducting business for customers in Iran, Libya, Sudan, Burma and Cuba. |
| HSBC accounts were also used by the Sinaloa drug cartel in Mexico and Norte del Valle cartel in Colombia to launder $881m. | HSBC accounts were also used by the Sinaloa drug cartel in Mexico and Norte del Valle cartel in Colombia to launder $881m. |
| The settlement allowed the bank to avoid pleading guilty to any wrongdoing. | The settlement allowed the bank to avoid pleading guilty to any wrongdoing. |
| If HSBC had been proven guilty of criminal action, it could have lost its banking charter in the US. | If HSBC had been proven guilty of criminal action, it could have lost its banking charter in the US. |
| HSBC and US regulators declined to comment on the report. | HSBC and US regulators declined to comment on the report. |
| The UK Treasury has not commented either. | The UK Treasury has not commented either. |