News Release

Lynch’s “Sweetheart Deal” with HSBC

The New York Times reports: “Senate, Clearing Hurdle, Sets a Thursday Vote on Loretta Lynch.”

Corporate Crime Reporter in “Vitter Pushes Whistleblower Claim of Cameron Ties to Deferred Prosecution of HSBC” is now reporting: “Senator David Vitter (R-Louisiana) is pushing U.S. Attorney General nominee Loretta Lynch for more information regarding her involvement in a settlement agreement with HSBC. … Vitter is asking Lynch about whistleblower allegations that Prime Minister Cameron urged President Obama not to pursue a criminal prosecution against HSBC for fear that it would result in HSBC losing its U.S. banking charter and would no longer be able to conduct business in the United States.” [audio report]

WILLIAM BLACK, blackw at umkc.edu, @williamkblack
Black is an associate professor of economics and law at the University of Missouri-Kansas City. A former bank regulator who led investigations of the savings and loan crisis of the 1980s, he is the author of the book The Best Way to Rob a Bank is to Own One. He recently wrote the piece “HSBC Violates its Sweetheart Deal and Lynch Praises It.” Note: Black is currently traveling and is therefore available for only a limited number of interviews.

BARTLETT NAYLOR, bnaylor at citizen.org, @bartnaylor
Naylor is financial policy advocate with Public Citizen and formerly chief of investigations for the U.S. Senate Banking Committee. He wrote recently that Lynch “became the chief attorney for an ongoing probe into HSBC’s money laundering crimes in 2010, during her assignment as the U.S. attorney for the eastern district of New York. At roughly the same time, the U.S. government received a damning trove of evidence from French officials against HSBC regarding tax evasion.” See an interview with Naylor on “too big to fail” banks, which addresses Lynch’s HSBC agreement.

NOMI PRINS, nomi at nomiprins.com, @nomiprins
Prins’ books include All the Presidents’ Bankers: The Hidden Alliances that Drive American Power. She said today: “Despite Loretta Lynch’s path to nomination being … cleared by immigration-related compromises, her prior treatment of HSBC remains highly problematic. Her deferred prosecution agreement and related $1.9 billion fine for HSBC’s substantive, illegal violations of U.S. laws and sanctions, and its provision of money laundering avenues for drug traffickers sadly became a partisan fight, rather than a bi-partisan moment of critical reflection and repositioning on judicial policies that coddle mega corporate criminals.”

Also see Institute for Public Accuracy news release: “HSBC Scandal: Why Did DOJ Ignore Whistleblower?