Wachovia's drug money laundering and the global economic swindle

What does drug money laundering look like in the 21st century? Can you believe Wachovia, Bear Stearns, Lehman Brothers, Bank of America, CitiBank, the Federal Reserve, and the biggest banks in the world, were intimately involved with Mexican drug cartels? And that the cash liquidity of the underground cocaine market is the only thing keeping the global financial sector running? Watch the video, read the story that broke in the Guardian, and make your own conclusions. Watch the sound byte pulled at the 7:00 minute mark. According to the UN investigators, in times when other bubbles burst, the only thing keeping banks afloat is the unceasing global demand for cocaine.

The authorities uncovered billions of dollars in wire transfers, traveller's cheques and cash shipments through Mexican exchanges into Wachovia accounts. Wachovia was put under immediate investigation for failing to maintain an effective anti-money laundering programme. Of special significance was that the period concerned began in 2004, which coincided with the first escalation of violence along the US-Mexico border that ignited the current drugs war.
Criminal proceedings were brought against Wachovia, though not against any individual, but the case never came to court. In March 2010, Wachovia settled the biggest action brought under the US bank secrecy act, through the US district court in Miami. Now that the year's "deferred prosecution" has expired, the bank is in effect in the clear. It paid federal authorities $110m in forfeiture, for allowing transactions later proved to be connected to drug smuggling, and incurred a $50m fine for failing to monitor cash used to ship 22 tons of cocaine.

More shocking, and more important, the bank was sanctioned for failing to apply the proper anti-laundering strictures to the transfer of $378.4bn -- a sum equivalent to one-third of Mexico's gross national product -- into dollar accounts from so-called casas de cambio (CDCs) in Mexico, currency exchange houses with which the bank did business.

"Wachovia's blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations," said Jeffrey Sloman, the federal prosecutor. Yet the total fine was less than 2% of the bank's $12.3bn profit for 2009. On 24 March 2010, Wells Fargo stock traded at $30.86 -- up 1% on the week of the court settlement.

The conclusion to the case was only the tip of an iceberg, demonstrating the role of the "legal" banking sector in swilling hundreds of billions of dollars -- the blood money from the murderous drug trade in Mexico and other places in the world -- around their global operations, now bailed out by the taxpayer.

Pay Your Taxes? These 10 Companies Didn't.

Pretty shocking data about major corporations being above the law and not having to pay taxes.

Cool video from US Royalty

Forever Young

I know in advance how childish this posting is and for the record - I don't care. :-)

As a young kid I was always interested in fast cars. In high school all of my cars were hot rods. My fastest Mustang turned high 14's in the quarter mile and my fastest car was a Nova that was in the mid to high 13's. It was a bored out 396 with a big cam and carb, and a 411 rear end. It moved pretty well but it was like a tank with a rocket strapped to it - it could only do one thing go forward fast. My friends and I were fearless, bordering on careless, in fixing and racing cars. For the fews hours of the week that they actually ran, they were fun cars to drive. I had one that I had to park on a hill because the compression was so high that it kept stripping the starter wheel. My friend, shit man Dan, nick named me burner because of the famous amounts of tread I would leave on the hill to our high school. I will still never forget my junior prom when we decided to rebuild my engine for one of my Mustangs. It was 5 p.m. and I was finishing installing the rebuilt engine in my car with my Mom telling me that I had to shower. My poor girlfriend at the time - when we got out of the car for dinner I noticed that there was grease all over her prom dress.

Fast forward to modern day. I now drive a Ford GT500 Shelby Mustang - it is the fastest car I have ever owned. It is disguised as a regular Mustang with its black stripes on black paint. On my daily commute I get challenged once a week for a friendly race, so far my record is perfect. Today I beat a M3 BMW this morning, was not much of a race. At 540 hp and 510 torque, when the supercharger kicks in it is game over. Last week it was a new Chevy Camaro SS that was bright red with white stripes. He was surprised so much that he chased me down, rolled down his window and asked what I did to the car to make it so fast. He also commented on the sound of the engine. When the supercharger is called to duty it make a high pitched whine that is unique. It is also like being in an airplane when the wheels leave the ground, you can hear the change in the engines as they move to their highest RPM's. The races are usually over before I leave 3rd gear (somewhere just past 100 mph). A couple of weeks ago we were in Menlo Park and raced a Corvette Z06 which has a much bigger engine (7 liter versus 5.4), but less hp and torque. It could have just been the driver, but he was shocked. Oh well, I know how ridiculous and immature it is, but I must admit I am having fun.

The Force from VW

This is really good!

Neil Pasricha: The 3 A's of awesome

Inspiring presentation about how this author faced personal challenges and motivated himself to happiness as a result. His three A's are: attitude, awareness, and authenticity.

2010 Shelby GT500 Mustang

Oh yeah, more on my super bad car!

Fast New Shelby Mustang GT500 Full Test

Oh yeah, I drive it to work every day!

Zeitgeist 2010: Year in Review

Best of Fails

I don't think I will ever ride my skateboard again.

Talking clearly & visually about plastic pollution

I had no idea how much pollution was being created from plastics.

Ram Dass, Love Serve Remember

Brief video of Ram Dass talking about the profound effect his spiritual teacher had on him.

Aaron Huey: America's native prisoners of war

A presentation about the history of Native American Indians summarized as prisoners of war.

Burning rubber in a 2010 Shelby GT500

2010 Ford Super Cobra

4050 Clover Valley Road, Rocklin, CA

This was our childhood home for high school. We moved there is 1977. Not much has changed at the core of Rocklin, although there was a bunch of growth outside the main part of town.

Rick Warren on a life of purpose | Video on TED.com

Very inspiring talk about serving others with what you have been given (identity, income and influence).

Julian Assange: Why the world needs WikiLeaks | Video on TED.com

Julian Assange: Why the world needs WikiLeaks | Video on TED.com

Great interview with the founder of WikiLeaks. One of his points is the current failure of journalism today is to surface the kind of information that can create true reform and how that is a primary purpose of reporting.

Story from Journey of Awakening by Ram Dass

There once was a King who was going to put to death many people, but before doing so he offered a challenge. If any of them could come up with something which would make him happy when he was sad, and sad when he was happy, he would spare their lives.

All night the wise men meditated on the matter. In the morning they brought the King a ring. The King said that he did not see how the ring would serve to make him happy when he was sad, and sad when he was happy. The wise men pointed to the inscription. When the King read it, he was so delighted that he spared them all.

The inscription read "this too shall pass."

Sam's first Senior Ball