Barack Obama’s nominee for attorney general, Loretta Lynch, has warned thatHSBC could be prosecuted over tax evasion connected to its Swiss subsidiary, despite the controversial agreement she negotiated with the bank two years ago.
In her first remarks since the Guardian and other media obtained a huge cache of leaked data from HSBC Switzerland, Lynch said the Department of Justice would not be constrained from bringing tax evasion charges against the bank if there were sufficient evidence.
[…] One of the most outspoken critics of the deal at the time, Democratic senator Elizabeth Warren, returned to the fray on Tuesday, saying prosecutors must “come down hard” on HSBC if the bank is found to have colluded with US tax dodgers.
“The government comes down hard on individuals who break the law time after time, and it should do the same for large financial institutions,” the Massachusetts senator said in a statement to the Guardian.
“The new allegations that HSBC colluded to help wealthy people and rich corporations hide money and avoid taxes are very serious, and, if true, the Department of Justice should reconsider the earlier deferred prosecution agreement it entered into with HSBC and prosecute the new violations to the full extent of the law.”
Stephanie Taylor, the co-founder of Progressive Change Campaign Committee, a national grassroots organisation and leading voice on Wall Street reform, said: “These revelations put Elizabeth Warren’s question about HSBC back on the table for Congress, regulators, and Loretta Lynch: what illegal activity does it take to shut a bank down? The public wants accountability for corporate crime.”