Real capitalism at work Drug money saved banks in global crisis, claims UN advisor
Monday, August 8, 2022
  • Circulation
  • Advertise
  • About Us
  • Contact Us
Organiser
  • ‌
  • Bharat
  • World
  • Editorial
  • Analysis
  • Opinion
  • Defence
  • Sports
  • Business
  • More
    • RSS in News
    • Special Report
    • Culture
    • Sci & Tech
    • Entertainment
    • Education
    • Books
    • Interviews
    • Travel
    • Health
    • Obituary
SUBSCRIBE
No Result
View All Result
Organiser
  • ‌
  • Bharat
  • World
  • Editorial
  • Analysis
  • Opinion
  • Defence
  • Sports
  • Business
  • More
    • RSS in News
    • Special Report
    • Culture
    • Sci & Tech
    • Entertainment
    • Education
    • Books
    • Interviews
    • Travel
    • Health
    • Obituary
No Result
View All Result
Organiser
No Result
View All Result
  • Home
  • Bharat
  • World
  • Editorial
  • Opinion
  • Analysis
  • Culture
  • Defence
  • RSS in News
  • Subscribe
Home General

Real capitalism at work Drug money saved banks in global crisis, claims UN advisor

Archive Manager by WEB DESK
Dec 27, 2009, 12:00 am IST
in General
Jeay Sindh Freedom Movement chairman Sohail Abro

Jeay Sindh Freedom Movement chairman Sohail Abro

Share on FacebookShare on TwitterTelegramEmail

Drugs and crime chief says $352bn in criminal proceeds was effectively laundered by financial institutions. 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 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.

Download Organiser App

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.

“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.

The IMF estimated that large US and European banks lost more than $1tn on toxic assets and from bad loans from January 2007 to September 2009 and more than 200 mortgage lenders went bankrupt. Many major institutions either failed, were acquired under duress, or were subject to government takeover.

(http://www.readersupportednew.org)

ShareTweetSendShareSend
Previous News

Thinking It Over Freedom and fate in Hindu thought

Next News

Bharat Vikas Parishad organises National group song competition

Related News

China slows BRI investments amid concerning economic situation

China slows BRI investments amid concerning economic situation

CWG 2022: Eldhose Paul wins gold, Abdulla Aboobacker Narangolintevid bags silver in men’s triple jump

CWG 2022: Eldhose Paul wins gold, Abdulla Aboobacker Narangolintevid bags silver in men’s triple jump

CWG 2022: Amit Panghal and Nitu clinch gold in boxing

CWG 2022: Amit Panghal and Nitu clinch gold in boxing

Check out this unseen video of R Madhavan watching Rocketry with Nambi Narayanan in Parliament

Check out this unseen video of R Madhavan watching Rocketry with Nambi Narayanan in Parliament

SSLV injects both EOS-02 & AzaadiSAT satellites; orbit achieved is less making it unstable: ISRO

SSLV injects both EOS-02 & AzaadiSAT satellites; orbit achieved is less making it unstable: ISRO

DEFENCE SCAN: IDEX-DIO SIGNS 100TH CONTRACT FOR DEFENCE INNOVATION

DEFENCE SCAN: IDEX-DIO SIGNS 100TH CONTRACT FOR DEFENCE INNOVATION

Comments

The comments posted here/below/in the given space are not on behalf of Organiser. The person posting the comment will be in sole ownership of its responsibility. According to the central government's IT rules, obscene or offensive statement made against a person, religion, community or nation is a punishable offense, and legal action would be taken against people who indulge in such activities.

Latest News

China slows BRI investments amid concerning economic situation

China slows BRI investments amid concerning economic situation

CWG 2022: Eldhose Paul wins gold, Abdulla Aboobacker Narangolintevid bags silver in men’s triple jump

CWG 2022: Eldhose Paul wins gold, Abdulla Aboobacker Narangolintevid bags silver in men’s triple jump

CWG 2022: Amit Panghal and Nitu clinch gold in boxing

CWG 2022: Amit Panghal and Nitu clinch gold in boxing

Check out this unseen video of R Madhavan watching Rocketry with Nambi Narayanan in Parliament

Check out this unseen video of R Madhavan watching Rocketry with Nambi Narayanan in Parliament

SSLV injects both EOS-02 & AzaadiSAT satellites; orbit achieved is less making it unstable: ISRO

SSLV injects both EOS-02 & AzaadiSAT satellites; orbit achieved is less making it unstable: ISRO

DEFENCE SCAN: IDEX-DIO SIGNS 100TH CONTRACT FOR DEFENCE INNOVATION

DEFENCE SCAN: IDEX-DIO SIGNS 100TH CONTRACT FOR DEFENCE INNOVATION

Israeli airstrike kills 2nd top Islamic Jihad commander in Gaza

Israeli airstrike kills 2nd top Islamic Jihad commander in Gaza

Presidential, Vice Presidential elections shatter myth of opposition unity

Presidential, Vice Presidential elections shatter myth of opposition unity

INFORMATION GIVEN BY RAKSHA RAJYA MANTRI SHRI AJAY BHATT IN RAJYA SABHA

INFORMATION GIVEN BY RAKSHA RAJYA MANTRI SHRI AJAY BHATT IN RAJYA SABHA

Incomplete Yet Charming Shiv Mandir

Incomplete Yet Charming Shiv Mandir

  • Privacy
  • Terms
  • Cookie Policy
  • Refund and Cancellation
  • Delivery and Shipping Policy

© Bharat Prakashan (Delhi) Limited.
Tech-enabled by Ananthapuri Technologies

No Result
View All Result
  • Home
  • Bharat
  • World
  • Editorial
  • Analysis
  • Opinion
  • Defence
  • Culture
  • Sports
  • Business
  • RSS in News
  • Special Report
  • Sci & Tech
  • Entertainment
  • Education
  • Books
  • Interviews
  • Travel
  • Health
  • Obituary
  • Subscribe
  • Advertise
  • Circulation
  • About Us
  • Contact Us
  • Privacy Policy
  • Cookie Policy
  • Terms of Use
  • Refund and Cancellation

© Bharat Prakashan (Delhi) Limited.
Tech-enabled by Ananthapuri Technologies