2009/Finances : Drug money saved banks in global crisis, claims UN advisor


READ FULL ARTICLE ON
http://www.guardian.co.uk/global/2009/dec/13/drug-money-banks-saved-un-cfief-claims

EXCERPT

Drugs money worth billions of dollars kept the financial system afloat at the height of the global crisis, the United Nations’ drugs and crime tsar has told the Observer.

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.

This will raise questions about crime’s influence on the economic system at times of crisis. It will also prompt further examination of the banking sector as world leaders, including Barack Obama and Gordon Brown, call for new International Monetary Fund regulations. Speaking from his office in Vienna, Costa said evidence that illegal money was being absorbed into the financial system was first drawn to his attention by intelligence agencies and prosecutors around 18 months ago. “In many instances, the money from drugs was the only liquid investment capital. In the second half of 2008, liquidity was the banking system’s main problem and hence liquid capital became an important factor,” he said.

Some of the evidence put before his office indicated that gang money was used to save some banks from collapse when lending seized up, he said.

“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.


TO BE CONTINUED ON
http://www.guardian.co.uk/global/2009/dec/13/drug-money-banks-saved-un-cfief-claims

3 Responses to “2009/Finances : Drug money saved banks in global crisis, claims UN advisor”

  1. theboldcorsicanflame Says:

    Reblogged this on SOS JUSTICE AGAINST INJUSTICE.

  2. financial advisor Says:

    Greetings! I’m from Michigan and completed the U of W with a business degree. My name’s Cecilia
    and I want to lookup and blog about financial accounting.
    I will be browsing the internet often for like minded authors and enjoyed this article.

  3. This site was… how do I say it? Relevant!! Finally I’ve found something which helped me. Thank you!

If you wish you can Leave a Reply. We will publish it after moderation. Insults and Spam are automatically deleted. Thank you for visiting my blog today.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: