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jrpierce

Apr 5, 2011, 5:29 PM

Post #1 of 13 (2005 views)

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US bank laundered billions from Mexico's drug gangs

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This interesting article from a UK newspaper discusses a story about large-scale cartel money laundering by a major US bank:

http://www.guardian.co.uk/...nk-mexico-drug-gangs

Also interesting, in view of the implications of the story, is the fact that I can't find main-stream US media with anything but minor coverage. Makes one wonder why.

Jim

Rolly

Apr 5, 2011, 5:37 PM

Post #2 of 13 (1992 views)

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Re: [jrpierce] US bank laundered billions from Mexico's drug gangs

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This is old news. It was a big item a year and more ago.

Rolly Pirate

E-visit me http://Rollybrook.com
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smokesilver

Apr 5, 2011, 6:08 PM

Post #3 of 13 (1978 views)

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Re: [Rolly] US bank laundered billions from Mexico's drug gangs

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It still begs the question of why this isn't pursued in the US media. The US buys the drugs, sells the arms and does the banking. Such a deal. No wonder the media won't touch it.

Reefhound

Apr 5, 2011, 6:25 PM

Post #4 of 13 (1972 views)

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Re: [smokesilver] US bank laundered billions from Mexico's drug gangs

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I saw plenty in the US media about it. And whenever the US does something to close loopholes and install procedures to reduce money laundering, people howl like stuck pigs.

Rolly

Apr 5, 2011, 6:31 PM

Post #5 of 13 (1964 views)

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Re: [smokesilver] US bank laundered billions from Mexico's drug gangs

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As I said, it's old news dating back to 2008 when it made a big splash in the USA media. Again last Spring it was big news, Look here.

Rolly Pirate

E-visit me http://Rollybrook.com
On Facebook as Rolly Brook

jrpierce

Apr 5, 2011, 6:41 PM

Post #6 of 13 (1956 views)

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Re: [Rolly] US bank laundered billions from Mexico's drug gangs

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Ah, my bad. I don't know if this new article from the Guardian has anything to add to the old story, but now I can check the prior stories against it I guess I didn't find them on Google because I was searching the News section. Thanks for the information, Rolly.

Jim

chinagringo

Apr 5, 2011, 7:06 PM

Post #7 of 13 (1941 views)

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Re: [jrpierce] US bank laundered billions from Mexico's drug gangs

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Even though I clicked on jr's post, I am not directing this response to his!

When the heck is everyone going to get a grip and realize not only the banking industry's complicity but that of the fool's in the US Goverment?
Regards,
Neil
Albuquerque, NM

jrpierce

Apr 6, 2011, 8:00 AM

Post #8 of 13 (1877 views)

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Re: [chinagringo] US bank laundered billions from Mexico's drug gangs

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I agree with you Neil.

This new article suggests that the banks and the US regulators looked the other way because when the financial system collapsed, the big international cartels were one of the few sources of liquidity. If true, that is pretty scary!

An expert quoted in the article also says that US law enforcers go after drug trafficking rather than money laundering because it is faster and easier. He likens this to trying to kill a plant by cutting off a few branches rather than chopping it down at the roots.

Jim

Casa

Apr 6, 2011, 8:19 AM

Post #9 of 13 (1869 views)

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Re: [jrpierce] US bank laundered billions from Mexico's drug gangs

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The new story is "Mexico announced a plan Monday to reward people who report suspected money laundering, under a program that will allow them to get up to one-quarter of any illicit funds or property seized.

Under the new plan, people can file reports in person, by telephone or by e-mail. The exact percentage of individual rewards will be determined case by case by a special committee.
Public servants, law enforcement and banking system employees will not be eligible for the rewards, in part because it is already their duty to report suspicious transactions."
http://www.washingtonpost.com/world/mexico-offers-reward-for-reporting-money-laundering-promising-share-of-loot-for-informants/2011/04/04/AFcF3DgC_story.html

jrpierce

Apr 6, 2011, 8:24 AM

Post #10 of 13 (1865 views)

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Re: [Casa] US bank laundered billions from Mexico's drug gangs

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I had seen that report, Casa. It seems Mexico has the right idea. Perhaps the US will catch on as well.

Jim

richmx2

Apr 6, 2011, 8:45 AM

Post #11 of 13 (1853 views)

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Re: [jrpierce] US bank laundered billions from Mexico's drug gangs

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I'd have to go into the "way-back machine" to find it, but the head of the U.N. office on narcotics control said the same thing (re: narcotics money laundering propping up international banks) back during the banking meltdown.

This certainly isn't a new situation. Go back to the 1850s, when the (legal) opium traders needed a banker... which today is HSBC. As it is, tropical commodities producers have always gotten the short end of the stick (the Indian opium growers got squat, the foreign sellers making the fortunes). Coffee and sugar — produced by what Aldous Huxley ("Beyond Mexique Bay") called "sweatable coloured labour" — made fortunes for the retailers and exporters, and left the actual workers in peonage. Same with narcotics... there's very little wealth in the growing regions, though the owners sometimes live quite well (or so we're told ... they seem to have a rather high overhead in terms of security).

In other words, the money made from these commodities is not coming back to places like rural Sinaloa. And I tend to doubt anyone is pushing for "fair trade" deals in this particular agricultural export sector.

That said, what IS different from other luxury commodities like coffee and sugar is that the narcotics trade is being supposedly controlled, not by the first world business interests, but by nationals within the producing countries. Sometimes I wonder if it isn't that a good chunk of the international (i.e. "imperialist powers") financial system is dependent on what used to be called "third world" types, that really bothers people.

If people wonder why the user countries object so much to legalizing the trade, I'd suggest the powers that be are very nervous that — not being controlled in the rich countries — if the Mexican gangsters turned legit and invested at home, the rich countries would be screwed.

http://mexfiles.net
http://voiceofmexico.com
http://editorialmazatlan.com

jrpierce

Apr 6, 2011, 9:00 AM

Post #12 of 13 (1838 views)

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Re: [richmx2] US bank laundered billions from Mexico's drug gangs

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Thanks for the historical perspective, richmx2. Most informative! For me, this all puts an entirely different spin on possible reasons why more is not being done outside of Mexico to stop the cartels.

Reefhound

Apr 6, 2011, 10:31 AM

Post #13 of 13 (1816 views)

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Re: [Casa] US bank laundered billions from Mexico's drug gangs

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The question is what exactly is money laundering? It's simply attempting to make a determination if the source of funds is legitimate and that can be difficult to do. So you want to make a big cash deposit. Can the bank determine if the cash came from dealing drugs or selling your goods and services? All attempts to cut off money laundering inevitably affect the common person as well.