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)
In a new working paper from the Center for Economic Policy Research, scholars look at the trading records of shareholders, directors and top executives of major financial institutions in the runup to the crash of 2007, and find that the sell-offs by the top five executives at a bank strongly correlated with that bank’s losses […]
In 2007, Singaporean blogfather Mr Brown discovered this video, which is literally the most best thing you will ever see, this week: middle-aged Singaporean government officials rapping(ish) about the nation’s public-private partnership strategy, with fresh rhymes like “They call me CEO, hear me out everyone/My aim, a vibrant media-hub for the city/Singapore-made content can be […]
In spring, 2015, American farmers started to spread the word that John Deere claimed that a notorious copyright law gave the company exclusive dominion over repairs to Deere farm-equipment, making it a felony (punishable by 5 years in prison and a $500K fine for a first offense) to fix your own tractor.
Much of what goes into creating an amazing photo happens in the digital darkroom. Here’s your chance to master all things photo editing: the Ultimate Adobe Photo Editing Bundle, now available in the Boing Boing Store for just $29.99.Across 8 courses and over 41 hours of intensive instruction, you’ll learn the fundamentals of Adobe’s suite of photo […]
3D printers are hot, but they’re also pricey. While the prospect of cranking out everything we can dream up is enticing, cost is often one factor that keeps us from jumping onto the 3D printing train.Now, thanks to M3D, that doesn’t have to be the case. You can now get its flagship 3D printer–plus four reels of filaments–for just […]
It’s no secret that technology is changing the way we all work—but it’s also transforming the way we play. The games of today look nothing like those of 10 or even 20 years ago: these days it’s all about mobile and 3D. And now you can learn to design 3D mobile games with the Intro to Unity 3D Game […]