UN : Drug Money Used to Prop Up US Banks


‘The United Nations Office on Drugs and Crime had found evidence that “interbank loans were funded by money that originated from drug trade and other illegal activities,”‘
By Boris Groendahl / January 25, 2009

VIENNA — The United Nations’ crime and drug watchdog has indicationed that money made in illicit drug trade has been used to keep banks afloat in the global financial crisis, its head was quoted as saying on Sunday.

Vienna-based UNODC Executive Director Antonio Maria Costa said in an interview released by Austrian weekly Profil that drug money often became the only available capital when the crisis spiralled out of control last year.

“In many instances, drug money is currently the only liquid investment capital,” Costa was quoted as saying by Profil. “In the second half of 2008, liquidity was the banking system’s main problem and hence liquid capital became an important factor.”

The United Nations Office on Drugs and Crime had found evidence that “interbank loans were funded by money that originated from drug trade and other illegal activities,” Costa was quoted as saying. There were “signs that some banks were rescued in that way.”

Profil said Costa declined to identify countries or banks which may have received drug money and gave no indication how much cash might be involved. He only said Austria was not on top of his list, Profil said.

[Editing by Charles Dick.]

Source / Reuters / International Herald Tribune

Thanks to S. M. Wilhelm / The Rag Blog

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5 Responses to UN : Drug Money Used to Prop Up US Banks

  1. Sadly, this has been going on since the mid 1970’s; including our own MILITARY CONTRACTORS.

    It’s interesting no one ever discusses what happens to the seizures of cocaine; other drugs that have a high street value….

    I don’t think anyone really wants to talk about this, but it should be done indeed!

  2. Mariann says:

    Golly gee, maybe we SHOULDN’T legalize drugs, if money from the illegal trade is the only thing keeping all these banks afloat! Wowie zowie, what a disaster it would be if all that went up like a puff of smoke…

  3. Mariann says:

    btw, Happy asks what happens to the illegal drugs seized in raids. Well, SUPPOSEDLY they are held as evidence, then, afterwards, they are “destroyed”. You betcha they are! I guess crack cocaine is “destroyed” after it gets smoked up in a cop’s crack pipe, right? In Dallas a few years ago there was a HUGE scandal when a huge pile of coke being held in the evidence locker was found to be drywall. I don’t know whether it was ever determined whether the REAL coke had been stolen and the drywall put in the evidence locker to replace it, or whether the so-called “drug ring” from whom it had been seized were peddling drywall on the streets as coke…

    Either way, the Dallas scandal is replicated on greater or smaller levels in police and sheriff’s departments nationwide on a regular basis.

    Where drugs are concerned, the MAIN PROBLEM is not the drugs, but the LAWS AGAINST THEM.

  4. Agreed – then again – a greed….interesting how handy that word ‘agreed’ works in this instance….

    As to the ‘discussion’, I’ve been friends with a few of the California police force; they’ve told me it supposedly is destroyed, but that they also use it as ‘plants’ when they make ‘busts’.

    Obviously they’re not supposed to tell me this kind of thing, but I was more referring to the fact that the public is never told when/how/if the drugs were disposed of, and we’re certainly never going to see that kind of transparency in the media.

    Who knows; maybe this is what also props up the police force – our local guys make $200,000/year for ‘trolling’ and handing out a few tickets. They live in the best of houses; I’ve got my ideas as to where that ‘drug money’ goes, and MariAnn is on target with her input (as always).

    It makes more money; creates more ‘jobs’ for law enforcement by not having drugs legalized. Heck, we can’t horn in on the doctor’s ‘legal drugs’ now can we…..some more dangerous than anything coming o’er the border.

    Might be a good topic to talk about that 600 foot wall they’re bragging about now.

    No one is talking about the 1/2 mile tunnel from Tijuana, Mexico into the San Diego area either.

    However, our local talk show had a guest on who’s come back from Yuma; checked with the patrol agents, and walked some of the ‘new wall’.

    He says some of the wall is substantial; bright lights – barbed wire, etc. Then do down about 3 miles to the east; it turns into a smaller wall – then nothing but barbed wire, and finally when they stopped with their tour, a few strands of barbed wire. He suggested that someone simply right ‘DETOUR’ in spanish, so the drug pushers and movers wouldn’t waste their time looking for it.

    One has to remember there’s money in ‘war’ – at least as far as our government thinks; so anything that creates conflict and makes money isn’t going to be thrown but a feeble attempt at curtailment.

  5. Okay, should learn to proof-read before posting….

    Below – corrections; sorry.

    Then GO down about 3 miles to the east; it turns into a smaller wall – then nothing but barbed wire, and finally when they stopped with their tour, a few strands of barbed wire. He suggested that someone simply WRITE ‘DETOUR’ in spanish, so the drug pushers and movers wouldn’t waste their time looking for it.

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