HSBC avoided US money laundering charges because of 'market risk' fearshttp://www.bbc.com/news/business-3676814012 July 2016
US officials refused to prosecute HSBC for money laundering in 2012 because of concerns within the Department of Justice that it would cause a "global financial disaster", a report says.
A US Congressional report revealed UK officials, including Chancellor George Osborne, added to pressure by warning the US it could lead to market turmoil.
The report alleges the UK "hampered" the probe and "influenced" the outcome.
HSBC was accused of letting drug cartels use US banks to launder funds.
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The letter said that prosecuting HSBC could have "very serious implications for financial and economic stability, particularly in Europe and Asia".
Justice Department spokesman Peter Carr said a series of factors were considered when deciding how to resolve a case, including whether there may be "adverse consequences for innocent third parties, such as employees, customers, investors, pension holders and the public".
The report also accuses former US Attorney General Eric Holder of misleading Congress about the decision.
The report says Mr Holder ignored the recommendations of more junior staff to prosecute HSBC because of the bank's "systemic importance" to the financial markets.
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