Did George Osborne help HSBC avoid prosecution in the US?

A US Congressional report says top Department of Justice officials decided not to prosecute HSBC for anti-money laundering, Bank Secrecy Act and sanctions violations in 2012, after warnings from the UK that it could precipitate a “global financial disaster”. The UK’s biggest bank acknowledged compliance failures, notably in its HSBC Mexico affiliate, that enabled drug cartels to launder at least $881m through HSBC Bank USA; it also assisted customers to circumvent US sanctions against Iran, Cuba, Sudan, Libya and Burma – conduct that collectively resulted in penalties of $1.9 billion and a deferred prosecution agreement. HSBC didn’t, though, face criminal charges and the report alleges the UK “hampered” the investigation. MLB Editor Timon Molloy discussed the report’s findings with Sarah Lowther on Share Radio’s ‘Morning Money’ programme on 13 July.