OCCUPY Weekend Economists! September 14-16, 2012

[Fuddnik]

47. Some big banks eyed in drug, terror money laundering

Some big banks eyed in drug, terror money laundering
2008 crisis might have eased scrutiny, but regulators taking close look now


By Jessica Silver-Greenberg and Ben Protess
updated 9/15/2012 12:11:35 PM ET


Federal and state authorities are investigating a handful of major American banks for failing to monitor cash transactions in and out of their branches, a lapse that may have enabled drug dealers and terrorists to launder tainted money, according to officials who spoke on the condition of anonymity.

These officials say they are beginning one of the most aggressive crackdowns on money-laundering in decades, intended to send a signal to the nation’s biggest banks that weak compliance is unacceptable.

Regulators, led by the Office of the Comptroller of the Currency, are close to taking action against JPMorgan Chase for insufficient safeguards, the officials said. The agency is also scrutinizing several other Wall Street giants, including Bank of America.

The comptroller’s office could issue a cease-and-desist order to JPMorgan in coming months, an action that would force the bank to plug any gaps in oversight, according to several people knowledgeable about the matter. But the agency, which oversees the nation’s biggest banks, has not yet completed its case. JPMorgan is in the spotlight partly because federal authorities accused the bank last year of transferring money in violation of United States sanctions against Cuba and Iran.

In addition to the comptroller, prosecutors from the Justice Department and the Manhattan district attorney’s office are investigating several financial institutions in the United States, according to law enforcement officials.
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http://www.msnbc.msn.com/id/49044641/ns/business-us_business/#__utma=14933801.1168731953.1343252111.1347761925.1347766847.253&__utmb=14933801.5.10.1347766847&__utmc=14933801&__utmx=-&__utmz=14933801.1343252111.1.1.utmcsr=%28direct%29|utmccn=%28direct%29|utmcmd=%28none%29|utmcct=/&__utmv=14933801.|8=Earned%20By=msnbc|cover=1^12=Landing%20Content=Mixed=1^13=Landing%20Hostname=www.nbcnews.com=1^30=Visit%20Type%20to%20Content=Earned%20to%20Mixed=1&__utmk=108705410

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It's well past time to start revoking these criminal institutions charters, and breaking them up.

Yeah, that'll happen. After pigs fly, and standard procedure to slap them on the wrist and fine them about 5% of their illegal profits, and back to business as usual the next day.