Senator Sherrod Brown Demands Answers from the Federal Reserve
Leaked documents from financial giant HSBC show that from 2005-2007, the bank helped wealthy and powerful clients evade taxes, and did business with blood diamond traffickers and arms dealers. And reports show that U.S. authorities knew about it back in 2010, two years before they allowed the bank to avoid jail time in an agreement to settle charges of money laundering to drug cartels. Did Wall Street regulators like the Fed ignore tax evasion by HSBC?
In response to the new reports, Senator Sherrod Brown (D-OH) wants to know what regulators did back in 2010 when they first learned of HSBC’s tax evasion, and questioned a Fed official about it in a hearing on Feb 10th. The District Sentinel reports:
“A Federal Reserve official could not confirm Tuesday that the central bank has taken action against HSBC for its tax evasion activities in Switzerland, after US officials received evidence over four years ago that the bank was helping American clients engage in the illegal practice.
Maryann Hunter, a high-ranking Fed supervisor and and regulator, said that she couldn’t comment on ongoing investigations at a Senate Banking Committee hearing when questioned by Sen. Sherrod Brown (D-Ohio), but noted that the body has pursued three enforcement actions against the multinational bank.”
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