&host=rt.com&uri=/usa/news/bank-new-york-lawsuit/&via=(none)&ua=CCBot/1.0 (+http://www.commoncrawl.org/bot.html))
Out of court settlement ends Bank of New York money laundering lawsuit
Published: 17 September, 2009, 13:00
TAGS: Conflict, Russia, Law, USA, Finance
Russia and the Bank of New York have come to agreement over a money laundering lawsuit dating back to the 1990’s, which will see the American bank pay the Government’s $14 million legal fees.
Russian Finance Minister Aleksey Kudrin announced on Wednesday, to the State Duma, that an out of court settlement of Russia’s claim for $22.5 billion had been reached, with a signed agreement to follow shortly.
"The parties have arrived at the necessity to sign an amicable agreement, and to pay at least the same legal costs [$14 million) as to the U.S. government."
The Bank of New York reached an out of court settlement with the U.S. government in 2005 for $14 million.
In addition to the $14 million case settlement with Russia, the Bank of New York, in an act of ‘goodwill’ is expected to make a $4 billion discounted loan available to Russia. The Finance Minister stated the loan was not part of the case settlement, but was a testament to the banks intention to continue working with Russia. Press reports in Russia suggest the loan will be disbursed in $400 million tranches every 180 days, at a rate of LIBOR + 2.5% over several years.
The announcement brings to an end a 2 year old legal case in which Russian authorities had claimed for lost taxation revenues in the 1990s which stemmed from a Bank of New York Vice President and her husband having wired $7.5 billion worth of Russian funds into accounts at the bank. The bank had conceded that a rogue employee had laundered $7.5 billion from Russia through the bank in the 1990s, but said it had admitted no criminal wrongdoing.
Russia’s customs agency also claimed that it had lost tax revenue because of the money transfer scheme, which was used in part to import goods at below market rates.
17.09.2009, 01:21
7 comments
“Road police blood tests are an act of rape”The pilot program that is happening in Idaho and Texas to take blood forcibly from individuals unwilling to blow a breathalyzer is aimed at prosecuting more people, says Georgetown University professor Andrew Einhorn. |
17.09.2009, 14:55
“Obama team puts reality before ideology”By shelving missile shield plans in Europe the Obama administration is dropping the “dreams of absolute security” in favor of reality, believes Dmitry Suslov from the Moscow-based Council on Foreign and Defense Policy. |
I am certainly one for drawing a line under the past, we all know what went on, but we are where we are. There were billions and billions looted from Russia. There still is looting, but to a much less degree, thanks to Putin. it takes time to turn the tap off, and we all know, it will never get fully turned off. Everything is a matter of degree. So let's move on. The loans look a positive step, so lets use them. There are many ways to get even, to stick it too them, but there is a time and a place for everything. What there is no time for is endless historical debates without a pragmatic move on attitude. Learn from history, don't live in it. Set up improved systems on exports and value transactions, this is what this all tells us. Not the childish I am never going to talk to you. As time moves on everything heals and low and behold the heat goes and there is no need to stick it to them.