Newsmaker of the year: Riggs Bank

[seemslikeadream]

Newsmaker of the year: Riggs Bank
By Tim Mazzucca
Washington Business Journal
Updated: 7:00 p.m. ET Dec. 26, 2004
The Riggs Bank name in Washington was like Tiffany.


The bank's reputation was unparalleled.

Then, the summer of 2003 rolled around, and Riggs found itself at odds with regulators over its handling of a Saudi princess's accounts in the wake of Sept. 11.

In 2004, those problems snowballed into an avalanche of bad news no one predicted -- accusations of money laundering, hefty federal fines, dealings with Chilean dictator Augusto Pinochet.

Of course, Riggs' trouble caught the eye of national media, and the floodgate of stories remained open throughout the year. Even the Albritton family, controlling shareholders of the bank, found itself under scrutiny.

By July, despite a valiant effort to maintain its composure while the news came fast and furious, Riggs realized it was time to sell. PNC Financial of Pittsburgh offered $779 million for what once was Washington's premier bank.

The deal is still pending.

Bank secrecy
Riggs had been teetering on the brink of noncompliance with the Bank Secrecy Act since about 1997. After the Sept. 11 terrorist attacks, regulators intensified their scrutiny.

...

The result? It's not your father's Riggs Bank anymore.

more
http://msnbc.msn.com/id/6757892/

No mention of Jonathan Bush? :shrug:


Riggs and Equatorial Guinea
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=125&topic_id=9558&mesg_id=11993&page=

9/11 relatives sue bank in terror attacks - Riggs
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=826447
Trouble on Oily Waters (DoD/Feith link to EG coup)
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=866406
Bank with close ties to Bush administration engulfed in scandal
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=775366
WaPo: Criminal Probe of Riggs Bank Underway
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=766616
WaPo: Allbritton Loses Riggs Bank (front page, day 3)
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=691609
WaPo: Justice Dept. to Probe Former Examiner at Riggs
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=714649
The Fall of Riggs
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=699623
Bank 'ignored laundering laws' in handling dictator's accounts
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=686504
A Fantastic Tale Turkey, Drugs, Faustian Alliances & Sibel Edmonds
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=655980
In Pakistan, dead men tell no tales
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=867507

[susu369]

1. As always, so interesting

thanks for posting. Just wonder where this story is going?

:kick:

[emad]

3. Follow the HSBC connection.

Last week's terrorist £20million+ bank heist in Northern Ireland isn't gonna put HSBC's Sir John Bond into a comfortable position....

[seemslikeadream]

4. Thanks susu369, the senate did have hearings

I guess they're thinking about it.With that new Patriot Act you'd think things would move rather fast.

U.S. Senate Committee on Governmental Affairs
Permanent Subcommittee on Investigations

Title: Money Laundering and Foreign Corruption: Enforcement and Effectiveness of the Patriot Act
Date: 7/15/04
Time (EST): 9:00 AM
Place: Dirksen Senate Office Building, Rm. 342

From 1999 to 2001, the Subcommittee conducted an extended investigation into money laundering vulnerabilities at U.S. financial institutions, including in the areas of private banking, correspondent banking, and federal securities. The Subcommittee issued two reports, held five days of hearings, and provided the factual foundation for many of the anti-money laundering provisions enacted into law in Title III of the USA Patriot Act of 2001.

The Subcommittee hearing will examine current enforcement of key provisions in the Patriot Act combating money laundering and foreign corruption, using a single case study involving Riggs Bank. The hearing will examine Riggs’ anti-money laundering program, administration of accounts associated with senior foreign political figures and their family members, and interactions with its primary regulator, the Office of the Comptroller of the Currency (OCC). The hearing will also examine the OCC’s anti-money laundering oversight and enforcement actions. In addition, the hearing will examine the activities of some oil companies in Equatorial Guinea.

Witnesses will be representatives from Riggs Bank, the OCC, and three oil companies.


Webcast: Click here to view archived hearing (Real Player format)
Publication: Hearing Publication not available until six months after the hearing date.
Check for Downloadable Publication
Order Printed Publication
Helpful Link
Real.com
Download your free real player by clicking on the link to the left to view the Hearing.


Hearing File: Minority Staff Report on Money Laundering and Foreign Corruption (.pdf format)

Member Statements
Senator Norm Coleman Senator Carl Levin




Witnesses Testimony

Panel 1
Lawrence I. Hebert , President and CEO , Riggs Bank N.A. , Washington, D.C.
Raymond M. Lund , Former Executive Vice President, International Banking Group , Riggs Bank N.A. , Washington, D.C.
R. Ashley Lee , Executive Vice President & Chief Risk Officer , Riggs Bank N.A. , Washington, D.C.
Simon Kareri , Former Sr. Vice President & Sr. International Banking Mgr. , Riggs Bank N.A. , Silver Spring, Maryland

Panel 2
Jennifer C. Kelly , Deputy Comptroller Mid-Size & Credit Card Bank Supervision , Office of the Comptroller of the Currency, U.S. Department of Treasury , Washington, D.C.
John Noonan , Former Assistant Deputy Comptroller, Office of the Comptroller of the Currency , U. S. Department of the Treasury , Washington, D.C.
Daniel P. Stipano , Deputy Chief Counsel, Office of the Comptroller of the Currency , U. S. Department of the Treasury , Washington, D.C.
Lester Miller , Examiner-In-Charge (Riggs Bank), Office of the Comptroller of the Currency , U. S. Department of the Treasury , Washington, D.C.


Panel 3
Andrew P. Swiger , Executive Vice President , ExxonMobil Production Company , Houston, Texas
Albert J. Marchetti , Vice President, International and Federal Relations , Amerada Hess Corporation , New York, New York
Steven P. Guidry , Central Africa Business Unit Leader , Marathon Oil Company , Houston, Texas

http://govt-aff.senate.gov/index.cfm?Fuseaction=Hearings.Detail&HearingID=189

[emad]

2. The HSBC connection:

"It wasn't an easy decision. Riggs held about 85 percent of the embassy business in the United States and 40 percent in London. That's gone now. London-based HSBC plans to come to Washington to try to fill the void that local banks are now afraid to touch."

No end to the gargantuan ambitions of HSBC CEO Sir John Bond, financier to the IRA, Sicilian Mafia and the so-called Al-Qaeda pan-Asian gangster network assembled by Mad Vlad Putin.....

Great compilation of references, Seems!

Hope you had a good festive break and lots of prezzies...

[seemslikeadream]

6. emad thanks so much

for the new info on HSBC. It's great to see you. :hi:
Maybe sattahipdeep will show up?

Yes, Protect the U.S. Treasury! Please!
Now there's a D.C. building that's always getting broken into

It's just too rich that federal officials, citing Tom Ridge's "terror" alert last Sunday, are scrambling to protect the Treasury Department in D.C. from outside attack.

What about inside jobs? The national storehouse of simoleons, constantly being legally looted by the ruling class, was actuallly illegally looted not so many years ago by a Republican Secretary of the Treasury. This now dead crook who took the dead presidents used the infamous Riggs National Bank—owned at the time and until a few weeks ago by Bush family sugar daddy Joe Allbritton—in his scheme.

But he was foiled in 1987 by a fresh-faced U.S. Attorney named Rudy Giuliani.

The ex-Cabinet member, Robert B. Anderson, pleaded guilty that year to evading federal income taxes and to operating an unregistered offshore bank, which also did business on Wall Street. The offshore bank lost $4 million in depositors' money. Anderson's own account at Riggs Bank was hiding such loot as payments he got as a lobbyist for the Reverend Sun Myung Moon, who's a longtime Capitol Hill favorite.

Anderson was a former Defense Department official who ran the U.S. Treasury from 1957 to 1961 and became one of Ike's top advisers. He evaded taxes on about $127,500 of income during 1984 by using a series of bank fraud schemes.

"We almost couldn't believe it," a young Giuliani was quoted as saying in 1987. "We were shocked a Secretary of the Treasury of such high standing had failed to file his tax returns."

That piece of history has fallen down the memory hole—even Google can't find it. And if you look up this Cabinet crook's bio on the Treasury Department site, there's not a word of his fraudulent behavior. But the current official bio does describe him as "financially conservative" and adds, "He believed that the government could be run more efficiently by adopting the policies and practices of private business."

more
http://www.villagevoice.com/blogs/bushbeat/archive/000284.php

[emad]

5. & not forgetting Riggs/Pinochet/BAE/Saudi slush fund

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1082538#1083039

[InvisibleBallots]

7. Riggs laundered the 911 terrorist money

How come the CEO is not in prison?

[seemslikeadream]

8. Bush family sugar daddy Joe Allbritton

Jonathan Bush, prison? :eyes:

[InvisibleBallots]

11. Bob Dole is on their payroll too

Funny, Dole was reported to DHS for "suspicious" cash withdrawls from Riggs. Evidentally, Dole likes to cash out $9000 from Riggs everyday (just under the limit) and walks around with thousands of dollars in cash everyday.

The WSJ did an article on this - it's because Dole is "old fashioned" - has nothing to do with having ready cash to bribe people - OF COURSE :eyes:

[seemslikeadream]

12. Great story InvisibleBallots Dole and Carlucci "suspicious activity"

WASHINGTON -- The Riggs National Bank scandal has led to unexpected fallout, including "suspicious activity reports" on former Senate Majority Leader Bob Dole and former Defense Secretary Frank Carlucci, Friday's Wall Street Journal reported.

As often as once a week, Mr. Dole's assistant walks around the corner from his Pennsylvania Avenue office in Washington to a branch of Riggs Bank, where she withdraws as much as $8,000 in cash. For walking-around money, Mr. Dole keeps a wad of $100 bills in the breast pocket of his shirt. "I probably use a credit card four or five times a year," Mr. Dole confesses. "I don't even have a wallet."

Mr. Dole's affinity for cash was of no concern to anyone until recently, when federal regulators pawing through the books of scandal-tarred Riggs spotted the large withdrawals and called them to the attention of management. In short order, the bank filed "suspicious activity reports" on Mr. Dole and another prominent Washington figure, Mr. Carlucci, questioning whether the two men might have violated federal laws against money laundering.
http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&news_id=dji-00094720040902&feed=dji&date=20040902&cat=INDUSTRY

[InvisibleBallots]

15. looks like I got a few specifics wrong

thanks for finding this

[Octafish]

18. Dole likes hard cold cash.

That's his real Viagra.

[sattahipdeep]

19. The challenge we face

Complains and exposure of their crimes cannot deter the criminals.
Therefore, the focus of the barbarians of our age has been to keep
their victims away from making the culprits pay back in kind.

Those who are dispatching more and more troops for further tortures, rapes, bloodshed
and destruction to sustain this tyranny would call an end to their
"war on terrorism" the moment they understand two things: one, the
real reason that makes their hearts abodes of terror and two, the
Anglo saying, "payback will be hell".

The challenge we face is to make the facts match, for in too many
places they do not. We have the tendency to look at events and pieces.
This approach fails us in discovering the real perpetrators and their motives.

http://usa.mediamonitors.net/content/view/full/12218/

BEGIN VIDEOTAPE

DONALD RUMSFELD, SECRETARY OF DEFENSE: And to change that way of living, would
strike at the very essence of our country.

And I think all of us have a sense if we imagine the kind of world
we would face if the people who bombed the mess hall in Mosul, or
the people who did the bombing in Spain, or the people who attacked
the United States in New York, shot down the plane over Pennsylvania...

http://edition.cnn.com/TRANSCRIPTS/0412/24/nfcnn.01.html

[bikebloke]

9. I used to bank at Riggs

It was local, rather than national or regional. Plus the reputation of being solid. But after reading about the corruption, I found another local bank. When I closed out, they said Riggs was insured by FDIC. I told them the government is broke with all the money going to Halliburton & Thieves. No way was I going to risk losing my savings.

[Carl Brennan]

10. Dubya and the Saudi Princess

Prince Bandar's wife Haifa, both long time friends of the Bushies, used Riggs to send money to suspected 9/11 terrorists.
Did Bush seek to investigate these dealing of Haifa. Well, hell no. Miss Laura "rallied to her side" to defend her against those nozy press people. and even Momma Barbara came to Haifa's defense: "I felt horrible about the attacks on her" the elder Babs told the New Yorker.
(Elsa Walsh, "The Prince: How the Saudi Ambassodor Became Washinton's Indispensable Operator," New Yorker March 24, 2003. Unger page 336 #5.)
These revelations had little impact on Bush's relationship with Bandar. He was invited to dinner the following day. (Romesh Ratnesar, "A Twist of the ARm; Pushing Saudi Arabia to Up Its Antiterrorism efforts, the US is telling Riyadh It's Next on Al-Qaeda's list, " Time Dec 9, 2002 ) ??

Most of the above taken from Unger's book: "House of Bush, House of Saud".

[seemslikeadream]

14. A Legal Counterattack seeking $1 trillion in damages

Saudis hire some of the toniest U.S. law firms to defend them against the landmark $1 trillion lawsuit on behalf of the victims of 9-11. So why is the plaintiff’s counsel ecstatic? Plus, new heat on radical imamNewsweek Web ExclusiveApril 16 - After months of working below the radar, a huge U.S. legal team hired by the Kingdom of Saudi Arabia has sprung into action and begun a major counteroffensive against a landmark lawsuit seeking $1 trillion in damages on behalf of the victims of the September 11 terror attacks.



THE OPENING DEFENSE SALVO in what promises to be a bruising legal battle was fired last week when a trio of lawyers from Baker Botts, a prestigious Houston-based law firm, filed a motion on behalf of Prince Sultan bin Abdul Aziz, the Saudi defense minister. The motion attacked the 9-11 lawsuit as a “broadside indictment of Saudi government, religion and culture.” It also argued that, as the third-ranking official of a foreign government, their client is immune from any U.S. legal action and that he should therefore be dismissed from the case altogether.

But in laying out their arguments, Sultan’s U.S. lawyers also presented highly detailed new evidence of the Saudi government’s role in funneling millions of dollars to a web of Islamic charities that are widely suspected by U.S. officials of covertly financing the operations of Al Qaeda and other international terrorist groups.

Backed up by stacks of court affidavits and copies of cancelled checks, the Baker Botts team openly acknowledge in their brief that Sultan has for the past 16 years approved regular payments of about $266,000 a year to the International Islamic Relief Organization—a large Saudi charity whose U.S. offices were last year raided by federal agents. Sultan also authorized two additional grants totaling $52,000 to the World Assembly of Muslim Youth, another Saudi-based group that has drawn the scrutiny of U.S. antiterrorism investigators.

Sultan authorized these payments as the head of two Saudi government councils, one of which, the “special committee” of the Council of Ministers, gives him sole power to disburse funds that further the “national and foreign policy of Saudi Arabia.” As such, the lawyers write, the payments are “clearly an official act” and therefore outside the scope of U.S. courts.
more
http://msnbc.msn.com/id/3067906/

Carl
:pals:

[annabanana]

16. Is James Baker still part of the Saudi defense team?........n/t

[DulceDecorum]

13. The Usual Suspects

Britain was given a full outline of an illegal coup plot in a vital oil-rich African state, including the dates, details of arms shipments and key players, several months before the putsch was launched, according to confidential documents obtained by The Observer.
But, despite Britain's clear obligations under international law, Jack Straw, who was personally told of the plans at the end of January, failed to warn the government of Equatorial Guinea.
The revelations about the coup, led by former SAS officer Simon Mann and allegedly funded in part by Sir Mark Thatcher, son of the former Prime Minister, will put increasing pressure on the Foreign Secretary to make a full statement in Parliament about exactly what the UK government knew of the putsch and when they knew it.
<snip>
In December 2003 and January 2004 two separate, highly detailed reports of the planned coup, from Johann Smith, a former commander in South African Special Forces, were sent to two senior officers in British intelligence and to a senior colleague of Donald Rumsfeld, the US Defence Secretary, according to the documents seen by The Observer .
<snip>
Smith, who claims he has received death threats since the plot was thwarted, said there was no response from British or US authorities to his warnings: 'THE ONLY THING THAT HAPPENED WAS THAT THE US AUTHORITIES FROZE THE EQUATORIAL GUINEA MONEY WITH THE RIGGS BANK IN USA.'
http://www.guardian.co.uk/equatorialguinea/story/0,15013,1361342,00.html

The Ferengi Rules of Acquisition
Rule 001 » Once you have their money, you never give it back.
Rule 020 » Only give money to people you know you can steal from.
Rule 073 » If it gets you profit, sell your own mother.

THE Pentagon and MI6 were warned in advance about the prospect of the African coup attempt which led to the arrest of Sir Mark Thatcher.
The American defence department was tipped off by Greg Wales, a British businessman named in legal papers as one of the ringleaders behind the plot.
Two weeks before the plan swung into action, he met a senior Pentagon official in Washington and told her that the situation in Equatorial Guinea had become “dangerous” and to expect trouble.
<snip>
During earlier trips to the American capital, Wales, who worked for Simon Mann, the alleged coup leader, met a CIA analyst and representatives from the Africa section of the US State Department. Wales participated with government officials in private think tanks that had discussed the possibility that Obiang could be arrested for money laundering or human rights violations.
“The State Department was under increasing pressure because of Obiang’s reputation to impose penalties on Equatorial Guinea which would have damaged American oil interests,” Wales said.
http://www.ladlass.com/intel/archives/007141.html

Among the cast list of mercenaries and rightwing businessmen dragged into the alleged coup affair, Severo Moto, the self-styled "president" of the Equatorial Guinea government in exile, has emerged as a pivotal figure.
Well-placed South African sources said that he was flown to neighbouring Mali on the eve of the coup, in preparation for his unveiling as the country's new leader.
<snip>
"In January he was telling anyone who would listen that he was going back to Equatorial Guinea," said Juan José Laborda, a socialist senator. "First it was going to be a naval attack, then it was going to be by air."
Adolfo Marugan, director of the Association for Democratic Solidarity with Equatorial Guinea, added: "Of course he was behind the coup, he does nothing else. He makes another attempt every six months."
Mr Moto sought exile in Spain after being arrested in May 1997 by the Angolan authorities, who found him on board a boat carrying a consignment of arms reportedly for use in a coup.
<snip>
Mr Moto told the Guardian he had been friends with the previous prime minister, José María Aznar, for more than 20 years. "He is one of a number of friends I have in the Popular party. I knew Mr Aznar even before I began my own political career."
http://www.guardian.co.uk/equatorialguinea/story/0,15013,1292091,00.html

Mann's father captained the English cricket team and is chairman of UK brewing giant Watneys. His South African mother was a former director of De Beers.
http://www.dehai.org/archives/dehai_news_archive/aug04/0436.html

[Octafish]

17. Will Smirk for Oil

Hey, Coincidence Theorists! Check this out...

The Complete Saudi Primer

EXCERPT

BANKING

The Bush-Riggs Connection

The decision last week by federal regulators to fine Riggs Bank $25 million for a "willful, systemic" violation of anti-money-laundering laws is raising new questions about whether the Bush administration's ties to powerful moneyed interests is unduly influencing U.S. foreign and national security policy. Riggs Bank is headed by longtime Bush family friend Joe Allbritton, employs President Bush's uncle Jonathan as a top executive, and other executives have been financial donors to the Bush campaign. The bank is at the center of a controversy, according to the Wall Street Journal, for failing to monitor "tens of millions of dollars in cash withdrawals from accounts related to the Saudi Arabian and Equatorial Guinean embassy," including "suspicious incidents involving dozens of sequentially numbered cashier's checks and international drafts written by Saudi officials, including Saudi Ambassador Prince Bandar bin Sultan." Sen. Charles Grassley (R-IA) "said members of the bank's board of directors should be held to account for failing to exercise their watchdog role over Riggs's operations" and said refusal to follow money laundering laws "allows terrorists to funnel their blood money through the system."

CONNECTION – JONATHAN BUSH AND RIGGS: Jonathan Bush, President Bush's uncle, was appointed CEO of Riggs Bank's investment arm in May of 2000, just months after his nephew secured the nomination for the presidency. At the time of the appointment, Jonathan Bush had already become a major financial backer of his nephew, rising to "Bush Pioneer" status by raising more than $100,000 for his nephew in 2000. The move solidified the relationship between Jonathan Bush and Riggs, which was originally initiated in 1997 when, according to American Banker newsletter, Riggs paid Bush $5.5 million for his smaller investment firm. That transaction, according to the NYT, "deepened links to the Bushes." While Riggs denies any connection between Bush and the accounts being investigated in the money laundering probe, Riggs President Timothy Lex told the Washington Times in 1997 that "there's a blurring of distinctions between banks, mutual-fund families, broker dealers and everything else across the board."

CONNECTION - ALLBRITTON-BUSH LINK: Allbritton, who said during the federal probe that he was stepping down from Riggs's board, also was close to the Bush family. As the NYT reported, he (along with Riggs client Saudi Prince Bandar) was a financial backer of the George Bush Presidential Library and Museum, with National Journal noting he contributed between $100,000 - $250,000 to the project. And there also appears to be a personal bond with the current President Bush: As the 2/15/01 WP noted, "When President Bush climbed out of his limousine on Inauguration Day at the corner of 15th Street and Pennsylvania Avenue, he spotted Allbritton, waved and said, 'Hey Joe, how are you doing?'" That might have something to do with the fact that, according to the 11/7/2000 Arkansas Democrat-Gazette, Allbritton-owned TV station KATV in Little Rock broke 39 years of precedent and publicly endorsed Bush in the 2000 presidential election. The station, which is the biggest in the state, proceeded to air its endorsement 10 times throughout Arkansas, and refused to give equal time to Democrats "who asked for the time to present an alternative to the station's endorsement."

ACTION – LOOSENING BANKING REGS THAT COULD AFFECT RIGGS: According to Daniel Benjamin and Steven Simon's "Age of Sacred Terror," upon taking office the Bush administration tried to halt efforts to tighten international banking laws – some of which may have affected Riggs. As he notes, the new Bush Treasury Department "disapproved of the Clinton administration's approach to money laundering issues, which had been an important part of the drive to cut off the money flow to bin Laden." Specifically, the Bush administration opposed Clinton administration-backed efforts by the G-7 and the Organization for Economic Cooperation and Development that targeted countries with "loose banking regulations" being abused by terrorist financiers. Meanwhile, the Bush administration provided "no funding for the new National Terrorist Asset Tracking Center."

ACTION - HIDING INFORMATION THAT COULD BE DAMAGING TO RIGGS: Newsweek reported that checks to "two Saudi students in the United States who provided assistance to two of the September 11 hijackers" may have come "from an account at Washington's Riggs Bank in the name of Princess Haifa Al-Faisal, the wife of Saudi Ambassador to the United States, Prince Bandar bin Sultan." This, and other details, were reportedly part of the bipartisan House-Senate Intelligence Committee investigation into the Saudi money flow after 9/11. Yet, instead of allowing the committee's final report to be published in full, "Bush administration officials, led by Attorney General John Ashcroft and FBI Director Robert Mueller, have adamantly refused to declassify the evidence" surrounding the transactions.

CONTINUED w/Lots o' links:

http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=99415#3