“Offshore Banking And The U. S. Federal Reserve”
The global bank HSBC (HSBC Holdings plc is a United Kingdom-based public limited company incorporated in England in 1990, and headquartered in London since 1993.) may be running offshore accounts for central banks. According to a U.S. Senate investigation, an HSBC subsidiary in London called HSBC Equator Bank had a sister bank in the Bahamas and to an internal e-mail, the bank told HSBC USA it had been providing offshore accounts to central banks for 20 years, because the banks wanted to avoid “Mareva” injunctions, legally enforceable orders to freeze funds.
This was revealed by a report to be released Thursday (April 15, 2010) by the Senate Subcommittee on Investigations. A subcommittee staff member who worked on the investigation said, “You have a central bank saying to their banker, I don’t want to have to comply with a legally enforceable order so put me offshore. So they did.”
Note 1 – An “Anton Piller Order” is a court order that provides the right to search premises and seize evidence without prior warning. This prevents destruction of incriminating evidence, particularly in cases of alleged trademark, copyright or patent infringements.
Note 2 – A “Mareva Injunction” is often combined with an Anton Piller order. This can be disastrous for a defendant as the cumulative effect of these orders can be to destroy the whole of a business' custom by freezing most of its assets and revealing important information to its competitors.
Note 3 – “A Shell Corporation” is a company which serves as a vehicle for business transactions without itself having any significant assets or operations. Shell corporations are not in themselves illegal and they may have legitimate business purposes. However, they are a main component of the “underground economy”, especially those based in tax havens. They may also be known as International Business Corporations (IBCs), Personal Investment Companies (PICs), front companies, or "mailbox" companies.
In the HSBC case, the Senate Subcommittee on Investigations was looking into money transfers from the National Bank of Angola. Other case studies in the report involve Equatorial Guinea, Nigeria and Gabon. From 2004 to 2008, Teodoro Nguema Obiang Mangue, son of the president of Equatorial Guinea, employed two lawyers, Michael Berger and George Nagler, to set up U.S. shell companies – Beautiful Vision Inc., Unlimited Horizon, Inc., Sweetwater Malibu LLC, Sweetwater Management Inc., and Sweet Pink Inc. – with no employees or places of business, to open bank accounts and move money. Berger and Nagler will be testifying at the hearing.
Money was moved from Obiang Mangue’s bank in Equatorial Guinea to a correspondent account at Wachovia Bank which then transferred the funds to Bank of America in Oklahoma City. In a six-month period, about $73 million dollars went through the Wachovia account. Another $37 million dollars went through Citibank. A Citibank spokesperson told IPS, “Were not commenting. We were only mentioned a couple of times, so we’ll leave it to the report and decline.”
Mentioned just a couple of times for $37 million and “we’ll leave it to the report”? Where the hell do these people get off? Are you, the reader, thinking in the same universe as I? Well, they sure are not. Someone somewhere has got the power to decide to let these banks get away with grand theft and not even a slap with as wet noodle. If it were you or me for $3,700 dollars, well, I certainly wouldn’t be sitting here writing this blog and you wouldn’t certainly be reading it either. We would be before the courts faster than we could say “Bob’s your uncle”.
In a Nigeria case, the report described how Jennifer Douglas, the fourth wife of Atiku Abubakar, who was vice-president of that country, helped him bring 40 million dollars in suspect funds into the U.S. ( I'm still guessing how big the suitcase was and what flight allowed her in. Or was it by wire transfer? ) Some of it was bribe payments made by Siemens, ( yes the one and the same Siemans. ) the German electronics company that paid some $2 billion dollars in global bribes.Next. The late president of Gabon, Omar Bongo, hired a U.S. lobbyist, Jeffrey Birrell, to arrange to buy an armoured car from a Utah company and to purchase a U.S.-made C-130 transport aircraft from Saudi Arabia. The C-130 deal fell through. But, Birrell had no trouble moving money from shell companies for the deal. Along the way he (Birrell) was sending out wire transfers directed by Bongo and his advisors, some to accounts in Brussels, Paris and Malta. A Subcommittee aide said, “President Bongo asked him to send 9.2 million dollars to an account in his name not in Gabon but in Malta. The lobbyist says ‘okay’. That was money from Ayira in Gabon and he sent 9.2 million dollars to the president in Malta. If that isn’t a suspicious transaction, I don’t know what is.”At the hearing February 4, 2010, Berger, Nagler (both lawyers for Obiang) and Birrell (registered agent for Gabon) refused to testify, based on the Fifth Amendment protection against self-incrimination.
I again wish to inform the reader that this is for information purpose only. I hope it opens a few eyes and educate people as to what is really going on with the elite (not all) and their (your?) money. The foregoing is but one reason they (the elite) are always richer than you or I and always will be. And the Feds are cracking down on this type of financial shenanigans.
I’m just adding credence to my blog, again, for your knowledge. And guess who are in charge of the “New Laws”? Or shall I say your President put in charge? Timothy Franz Geithner, currently the United States Secretary of the Treasury. It was revealed that Geithner had not paid $35,000 in self-employment taxes for several years. Geithner also deducted the cost of his children's sleep-away camp as a dependent care expense, when only expenses for day care are eligible for the deduction. Hum!…
And now we have Mr. Ben Bernake the Federal Reserve Chairman who was a member of the Board of Governors of the Federal Reserve System from 2002 to 2005. In 2009, Mr. Bernake faced allegations of fraud concerning the acquisition of Merrill Lynch by Bank of America. Wow. That’s neat. Finally, I'll mention Mr. Henry “Hank” Paulson. Oh, to hell with this guy. Paulson was compensated to the tune of $30 million in 2004 and took home $37 million in 2005. In his career at Goldman Sachs he built up a personal net worth of over $700 million, according to estimates. That’s “Millions”. And no where near what Madoff got away wit. Only, Madoff was caught. (Did you you know that Madoff was head of the Security Exchange Commission on Wall Street?) Here we go again. Wall Street. And the American people are led to believe that these guys are the best in America to run the trillions of dollars the Federal Reserve. “doesn’t” have. Why? Because they loaned it their cronies on Wall Street. Isn’t that like saying “We’ll put the fox in the hen house to watch over our chickens?” Enough. Makes me sick to see our neighbour to the south go down in flames.
Again. My thanks to Lucy Komisa for using some of her quotes, and further links: