The Observer reports that an estimated $352bn
of drug and mafia money was laundered by the major banks at the peak of the credit crunch, while regulators turned a blind eye, since the highly liquid criminal underworld was the only source of the cash necessary to keep the banks' doors open. As Charlie Stross notes
, "A third of a trillion dollars is a lot of money; it's enough to fund the US military invading another country halfway around the world, or a manned Mars exploration program." Charlie goes on to mention that now that these narcobucks "aren't neatly bundled up inside the mattress any more; they're in the system," that there's $0.3 trillion sitting there, nice and legal, entering the investment world.
Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organised crime were "the only liquid investment capital" available to some banks on the brink of collapse last year. He said that a majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result...
Drug money saved banks in global crisis, claims UN advisor
"Inter-bank loans were funded by money that originated from the drugs trade and other illegal activities... There were signs that some banks were rescued that way." Costa declined to identify countries or banks that may have received any drugs money, saying that would be inappropriate because his office is supposed to address the problem, not apportion blame. But he said the money is now a part of the official system and had been effectively laundered.
"That was the moment [last year] when the system was basically paralysed because of the unwillingness of banks to lend money to one another. The progressive liquidisation to the system and the progressive improvement by some banks of their share values [has meant that] the problem [of illegal money] has become much less serious than it was," he said.
(Image: Money, Money, Money, a Creative Commons Attribution image from borman818's photostream)
Gabriella Corley is a 9 year old with Type I diabetes who’s allergic to the insulin covered by her low-income parents’ healthcare; to live, she must take Sanofi’s proprietary Apidra brand insulin, which has increased in price by 1,123% since 1996, and which is only covered to 25% by her insurer’s Pharmacy Benefit Manager, CVS.
Since the earliest days of ecommerce, analysts have predicted that retailers would use their estimations of their customers’ willingness to pay to invisibly, instantaneously reprice their goods, offering different prices to each customer.
The Intercept publishes a previously-unseen set of Snowden docs detailing more than $500,000,000 worth of secret payments by the Japanese government to the NSA, in exchange for access to the NSA’s specialized surveillance capabilities, in likely contravention of Japanese privacy law (the secrecy of the program means that the legality was never debated, so no […]
If you want to work in tech, but don’t have any desire to code web apps to help businesses sell things to other business, you might want to consider a career in cybersecurity. Judging from the apparent complete infiltration of Russian hackers in American cyberspace, it seems fair to speculate that there’s a major shortage of […]
All moms are different. But all moms like getting flowers on Mother’s Day, and that’s a fact (not, however a fact we can document in any fashion.) Instead of getting chewed out for forgetting to call her on the second Sunday of May, you can take care of it ahead of time with Teleflora’s flower […]
Yeah, Bluetooth audio is pretty common these days, so why should you care about these earbuds? Look how happy that woman up above looks. She’s got FRESHeBUDS in. Boom. There’s your reason. She’s also at the beach and it appears to be a very nice day.But for the sake of promotion, wireless earbuds are fast becoming the […]