Should An Institution Is Too Big To Scandal?

There is a lot of controversy around the idea that if an institution is “Too big to fail” then it can essentially be “Too big to jail.” This was certainly the case for the multinational bank HSBC. Back in 2012 HSBC suffered from one of the biggest money laundering cases, for a banking institution. HSBC was charged with not having adequate money laundering controls and for doing business with unauthorized countries. The multinational institution had allegedly supplied banking services to Saudi Arabia spite connections to terrorist financing. As well dodged restrictions created to prevent transactions with Iran and North Korea. The biggest issue was they would set up offshore accounts for drug cartels and suspected criminals in Jersey. HSBC
As a result to there lack of due diligence HSBC bank had a fine of $1.256 billion in forfeiture and $665 million in civil penalties. Considering their high level of damage and fines, HSBC left the scene without much retaliation. In March of 2013 the attorney general, Eric Holder, and the US Department of Justice decided not to pursue criminal prosecution for HSBC. Holder claimed that the prosecution of a large institution would have a negative impact on the national economy. This sparked up a lot of controversy since it lead to individuals thinking if one is too big or has a big impact on the market then their actions aren’t as impactful as one individual that doesn’t have recognition. The case of HSBC leads to the ethical issue of whether to ensure justice through prosecution or whether to forego criminal proceedings in order to protect the economy and society at
The department of justice decision to not pursue prosecution of HSBC executives shows that the issue isn’t being handled correctly. While instances may exist when other consequences may mitigate an application of justice, the long-term effects of avoiding prosecution for the criminal acts of HSBC are too great. When government allows big financial institutions to go largely unpunished for laundering huge sums of money for criminal organizations such as drug cartels, it is essentially endorsing the immeasurable amount of harm associated with the ever growing issue of global drug trade. Justice for perpetuating such criminal enterprises cannot be adequately administered by a mere financial penalty. HSBC bank officials who knowingly knew about the situation should be incarcerated and the bank should have some rights taken away as a punishment. The Attorney General and the department of Justice failed in their prosecutorial duties. They did not prosecute HSBC officials because of an uncertain forecast outcome. Ultimately, they failed to provide justice for gross wrongdoing. The decision not to prosecute also prevents other regulators from punishing HSBC. While some may believe the Deferred Prosecution Agreement promotes the best interests of the United States, its long-term effects may ultimately pose a greater