- For decades, HSBC, one of the world's largest banks, laundered hundreds of millions of dollars for Mexican drug cartels. Senator Elizabeth Warren, dogged journalists and prosecutors try to hold the bankers to account.
- Like the previous 3 segments of this series, this follows another instance of business (in this case banks) allowing the lure of big money to blind it to the morality of how that money was made. This intentional 'blindspot' allowed HSBC (Hong Kong and Shanghai Banking Corporation) to ignore its internal policy concerning money laundering. This documentary opens with a feel good video put out by HSBC interspersed with video of the violent world of the drug cartels: violence which produced the cash HSBC intentionally laundered. 'Cartel Bank' quickly moves on to the money which the drug trafficking creates. Mexican bank Banco Bital operated in areas where drug cartel activity was well known. In 2002, HSBC purchased Banco Bital as part of its North American strategy. Furthering that strategy was a corporate decision not to look into transactions going on in Mexico. HSBC inherited accounts from drug cartels and also inherited the bankers with existing contacts with the drug cartels. The documentary tells the story of Zhenli Ye Gon, a Mexican citizen born in Shanghai who operated a drug company. A raid on Zhenli's home found guns and cash along with evidence showing he banked with HSBC and had been for many years. This caused increased scrutiny which showed itself at the HSBC branch in West Virginia. What investigators discovered was that Doctor Barton Adams was involved with fraud against both Medicare and West Virginia Medicaid. He also laundered the fraudulently obtained money through HSBC. The bank ignored warnings about Dr. Adams but also others possibly laundering money. As is the case throughout this series, being caught cheating didn't clean up the problem but allowed the perpetrator to further cover its misdeeds while continuing to follow the immoral business plan. On July 12, 2012 representatives of HSBC were questioned by the Senate Permanent Subcommittee on Investigations. HSBC did not deny that it had been money laundering but insisted they are trying to do better. They didn't. On December 11, 2012 the Department of Justice charged HSBC with several counts of illegal money laundering. HSBC admitted to illegal practices and agreed to pay $1.2 billion plus $665 million in civil penalties plus defer part (not all) bonuses to upper management. This was all part of a Deferred Prosecution Agreement. The DPA required HSBC to undergo corporate monitoring and promise to cease its money laundering operations. The episode ends with researchers being saddened by the Government's unwillingness to hold HSBC Corporate or any of its officers responsible: Nobody went to jail. Matt Taibbi (investigative journalist): "It formalized what everybody already knew - when these companies become so large and important, they become too big to jail." The documentary ends with the announcement that the U.S. Justice Department is releasing HSBC from their Deferred Prosecution Agreement.
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