Tuesday, January 11, 2011

https://nacla.org/node/5963
EXCERPT:
Narco-Bankers, Drug Summits and Presidents
Few events are more emblematic of the fusion of high-level government officials, corporate finance, and drug trafficking than a meeting in Mérida between then-President George W. Bush and Calderón in March 2007. The meeting hatched the initial plans of the Mérida Initiative, or Plan Mexico, which has made Mexico the number one recipient of U.S. military aid in Latin America, surpassing Colombia. Narco News reported the Mérida summit was being hosted at the property of accused narcotrafficker and money launderer Roberto Hernández Ramírez. The narco-estate had also been the site of a 1999 anti-drug summit between President Bill Clinton and his Mexican counterpart Ernesto Zedillo.
At the time of the 1999 meeting, Hernández was the owner of Mexico's national bank, Banamex. By the time of the following presidential summit in 2007, Hernández had become a board member of Citigroup, which had bought Banamex. (Mexican daily Por Esto! and Narco News broke the story about the narco-banker and defeated Citigroup's libel and slander suit against their reporters; for a full account, see The Narco News Bulletin.)
As Clinton's Treasury Secretary, Robert Rubin led a money laundering investigation against Banamex in 1998. But according to a former U.S. customs agent, Rubin helped shutdown the Banamex investigation once customs agents began implicating top-level officials in the Mexican government. By 2001, Rubin had joined Citigroup and led the financial firm's buyout of Hernández's Banamex. Considering the financial company's established links with drug money laundering in Mexico, the purchase of Banamex put Citigroup in a position to bank millions of dollars in illegal drug profits.
Around We Go
Rubin, Hernández and Citigroup are all part of a system, rarely punished beyond a fine, with privileged access to power. The message could not be clearer: Those in the top echelons of the drug trade – and their necessary politico-banker allies – will continue to profit from the trade in illicit drugs, while the artillery of Plan Mexico is directed at the replaceable pawns of the lucrative business. Washington is funding both sides of the drug war. U.S. military aid to this corrupt system has flowed rapidly under the Obama administration.
Meanwhile, Mexicans are left to ponder the violent and corrupt political system they are left with ahead of the July elections. Election polls project that 60 percent of all eligible voters will simply stay home, while a campaign for a blank vote of protest gains momentum.
Most Mexicans clearly understand the post-NAFTA reality: As the economy rots in joblessness, their politicians court powerful moneyed interests; whether from the drug trade, multinational corporations, or both at the same time. The supposed “failed state” looks a lot more like a corporate-backed narco-state.

http://www.narconews.com/docs/ontrial.html
EXCERPT:
The Case

The Exhibits attached to the Banamex (now Citigroup) Lawsuit:
  1. Village Voice: Menéndez v. the Drug War (February 23, 2000)
  2. Narco News: Menéndez, Hero of the Month (May, 2000)
  3. Dare to Legalize by Mario Menéndez (May 22, 2000)
  4. Consolidation of Narco Power by Al Giordano (June 15, 2000)
  5. NYT's Dillon Responds on Way Out the Door (June 8, 2000)
  6. Times Dumps Dillon (May 28, 2000)
  7. Vicente Fox on the Cocaine Peninsula (July 9, 2000; includes chronology of the trafficking story)
  8. Citibank Implicated in Fox Money Trail (June 24, 2000)
  9. Roberto Hernández Elected? by Isabel Arvide (July 11, 2000)
Listen to the entire WBAI Radio Show cited in the Lawsuit (Let Em Talk with Paul and Joanie)


Read the Lawsuit:


http://www.pbs.org/wgbh/pages/frontline/shows/mexico/family/citibankaffair.html
EXCERPT:
Q: (W)hat your duties... in that position?
A: I manage a team of 10 people with responsibilities... primarily to manage accounts for Mexican
high net worth individuals.
Q: How do you define a high net worth individual?
A: Usually an individual who has a net worth of at least $5 million and that has liquidity of at least
a million to invest with us.

"White gloved" banking
Q: What is international private banking?
A: Private banking is the area of the bank... that deals with clients with more money than the
general public, that does it on a more white gloved kind of environment.... In the private bank of a
bank, you are a name. The person knows you, knows who you are, knows your family, they
recognize your voice.... (I)t is basically a more personalized kind of banking relationship....
Q: ... (T)he laws which govern your conduct as an international private banker are the same laws

http://mexfiles.net/2009/02/28/rescue-me-citibank-and-banamex/
EXCERPT:

Rescue me … Citibank and Banamex

28 February 2009
by richmx2
Here’s a story you probably WON’T read north of the border.
Mexican banks can be (and are, except for Banorte) foreign owned, but foreign governments cannot be shareholders.  So, what happens when — under the latest rescue plan (#3 in a series of ??) — the United States government becomes a shareholder in Citibank, whose only profitable unit right now is Banamex?

http://en.wikipedia.org/wiki/Banorte
EXCERPT:
Money laundry involvement in US Operation Casablanca
Operation Casablanca was a three-year U.S. undercover investigation, where Americans investigated major Mexican banking institutions for laundering illicit drug profits. Mexican authorities were not informed about the investigation.
This operations led U.S. Customs agents to arrest 22 high-ranking and mid-level bankers from 12 of Mexico's largest banks when they traveled to the U.S. in mid-May while they thought there went to a banking conference. The investigation produced 160 indictments, including 3 Mexican banks and 26 Mexican bankers. The US Justice Department intended to prosecute the banks under US law, with maximum penalties, seizures, and revocation to operate in the United States.
Banorte was among the banks and bankers which were busted in money laundry according to the Operation Casablanca. From June to July 1998 issue of Money Laundering Alert, Banorte was suspected to have forfeited $7,323,103.51 US dollars, so Banorte faced civil penalty lawsuit under Title 18, USC Sec. 1956(b) and civil forfeiture action under Title 18, USC Secs. 981 & 984.
On July 1, 1999, a U.S. federal judge in Los Angeles dismissed with "extreme prejudice" a $7.3 million forfeiture case against Banorte. No criminal charges were filed and U.S. authorities gave them back $1.4 million seized in the operation.
Banorte had implemented anti-money laundering policies and procedures and had detected and closed money laundering accounts prior to Operation Casablanca. These polices and practices enabled Banorte to defend the money laundering charges.

http://www.northpark.edu/News/News-Archives-2009/April-through-June/Graduating-Senior-Receives-Fulbright-Award.aspx
EXCERPT:

Graduating Senior Receives Fulbright Award

Riley Clark is the third North Parker to receive a Fulbright in the last two consecutive years
CHICAGO, IL (April 20, 2009) – Ask most graduating seniors about their post-college plans, and you may get a host of answers—"traveling abroad," "furthering my education," and "getting a job," among them.

Come September, Spanish and business double major Riley Clark will have the opportunity to do all three as the latest North Park University recipient of a prestigious Fulbright Award.

Granted by the J. William Fulbright Foreign Scholarship Board and the United States Department of State, the award is also sponsored by the Fulbright Garcia-Robles Commission in Mexico. It will cover Clark’s full expenses for a yearlong professional business experience at a bi-national business or a nongovernment agency in Mexico, in either Mexico City or Monterrey.

"I believe my experience as a Fulbright grantee will provide me with the impetus to contribute to the connectedness of the international business community," says Clark, who will be assigned to a specific company by the Garcia-Robles Commission within the next few weeks.

During the past two years the Commission has placed grantees in companies such as Banamex, Banorte, NAFTA Fund, New Ventures, Proctor & Gamble, Rothschild Bank, and Scotiabank, among others. In addition, Clark will be allowed to take two graduate courses each semester, in Spanish, business, finance, international trade, and comparative law.  

Clark is one of only 10 outstanding students from across the country chosen by the Fulbright Commission to work in a bi-national company. He is also the third North Parker to receive a Fulbright Award in the last two consecutive years. Last year, 2007 graduate Rebecca Miller was a grantee, and this year, professor of Spanish Linda Parkyn received a Fulbright Specialists Award, reserved for faculty and professionals.

Parkyn, who will spend several weeks in Honduras teaching applied linguistics this spring, was Clark’s mentor throughout the application process, and herself traveled to Mexico in 2003 as a Fulbright grantee.

"Riley is uniquely qualified to use his knowledge of Spanish as well as his business acumen to become a bilingual business leader," she says, noting that the award will give Clark an opportunity to "put a human face" on the intercultural relationships between the United States and its neighbors in Mexico. "We all can be proud that North Park University educates students who can compete at this level."  

http://www.constitution.org/rpt/0508gately.htm
EXCERPT:
Former Customs Agent Indicates Clinton Complicit in Narcotics Trafficking
Interview by Bill O'Reilly of William Gately
Transcription and Notes by Jon Roland
FoxNews, May 8, 2000
Bill O'Reilly reporting from Los Angeles, California

O'Reilly: In the Impact Segment tonight we continue our investigation into the problems between Mexico and the United States. In 1998 U.S. Customs Agent Bill Gately was in charge of Operation Casablanca, an investigation that proved some of the biggest banks in Mexico were laundering drug profits. This of course was embarrassing to the Mexican government, and to the Clinton administration, which has continued to insist that Mexico is a staunch ally in fighting drug trafficking across the U.S. border. Mr. Gately, who recently retired, wanted to continue his investigation, because he had developed information that the Mexican Defense Minister, Gen. Enrique Cervantes, was allegedly involved with drug money. But U.S. Customs Chief Ray Kelly ordered Gately to stop his investigation cold. William Gately joins us now. [View pans to Gately.] So you were on Sixty Minutes about a month ago, I guess, with the story. We've investigated, so I don't have a lot of questions, you know, that this isn't happening, because we know it is, that the Mexican government is very embedded in corruption, and taking money from the drug cartels. But the Defense Minister? Do you believe he is involved with the drug trafficking?
Gately: I don't see where it is such a big surprise. First, this wasn't the first time that the Defense Minister's name came up in this investigation, as potentially corrupt. In fact, his drug czar, Gen. Gutierrez Rebollo, was arrested by the Mexican government. ...
O'Reilly: Right, and he was Barry McCaffrey's, our drug czar's, big pal, and [it was] very embarrassing to drug czar McCaffrey, when he was arrested. Now the bottom line on this, and you correct me if I'm wrong, Mr. Gately, is that the Clinton administration wants to engage Mexico economically, with NAFTA, with all kinds of mutual trade benefits, and they don't want to tee off the Mexican authorities, so they're willing to look the other way on the drug problem. Am I wrong?
Gately: They are looking the other way. With the fallout from [Operation] Casablanca, the President of the United States, through his Attorney-General, signed an agreement with the Mexican government, that there would be no more deep cover penetrations into criminal activity in Mexico ...
O'Reilly: Is that right? I didn't know that...
Gately: ... without, without first telling the Mexicans we were doing it.
O'Reilly: So Operation Casablanca was an undercover — you were running it — the Mexican government had no idea you were running it — and now we can't do that any more! President Clinton has told President Zedillo we're not going to do that any more.
Gately: Not only that but we have a document that has the power of a treaty, that says that it's the law of the land, [that] we will not do it any more.[1]
O'Reilly: But my question is, why is President Clinton playing into the hands of the Mexican government, when time after time after time it has been proven the Mexican authorities are corrupt?
Gately: Because they choose economics, and what I consider a flawed foreign policy, over righteous law enforcement, which is to engage the people who are really running the drug trade in Mexico. Those are the banks, and the politicians.
O'Reilly: You think it goes up to President Zedillo?
Gately: Well, it went up to President Salinas, why not Zedillo?[2]
O'Reilly: Well, it didn't. You didn't get Salinas. You got his brother.
Gately: You didn't get him, but in fact his bank accounts were full of drug money.
O'Reilly: How do you know that?
Gately: Because $180 million were transferred into those accounts, so ...
O'Reilly: But that was his brother. I didn't think that it was the President — Salinas — was it?
Gately: This is the way it works in Mexico.
O'Reilly: But let's get with Salinas first. Because I want to be clear on this. I never heard that President Salinas — ex-President Salinas — of Mexico had $180 million in his bank account. Is that absolutely true?
Gately: That's a fact, those accounts were filled with drug money. Those accounts.
O'Reilly: You're saying it. I didn't know that. I knew his brother did, and they got his brother.
Gately: Yeah.
O'Reilly: But Salinas [is] living in Ireland now, he's over in Ireland.
Gately: This is true, this is true, but this is the way it works in Mexico: No one at the lower level can take money unless the person above him also takes it. It's the culture of mordita.[3]
O'Reilly: Why would Zedillo, the President of Mexico, have to necessarily be taking money from the drug cartel? I mean, he could get elected, as he has, and he's going to stand down soon, and he could be clean while his defense minister, he could be dirty. Why would Zedillo have to be dirty?
Gately: Because that's the way it works. It goes up, the money goes up.
O'Reilly: And you believe they're all tainted by it.
Gately: They're all tainted by it. Every financial institution in their country was tainted by it. There's no end to who's involved because everyone must be involved for it to operate in the way that it does.[3]
O'Reilly: Now when you say this to — you never talked to Janet Reno, did you?
Gately: Did I ever talk to her, no. We don't have discussions.
O'Reilly: But you did talk to Ray Kelly, the Customs Commissioner?
Gately: Yes.
O'Reilly: But you never talked to Reno, who's Kelly's boss?
Gately: No, she's not.
O'Reilly: Customs is not [in] the Department of Justice?
Gately: Robert Rubin was Kelly's boss, and I did talk to him.
O'Reilly: In the Department of Treasury.
Gately: The Department of Treasury.
O'Reilly: Okay, my mistake. So you did talk to Rubin. What did Rubin say?
Gately: Rubin said, "Go for it!" But for Robert Rubin, hearing the situation at the time in Operation Casablanca, they'd have shut it down a lot sooner.
O'Reilly: All right, so Rubin was on board with you trying to get the top guys in Mexico.
Gately: It was Rubin's decision not to tell the White House, not to tell the National Security Advisor, not to tell the State Department. Those were all his decisions, and I heard him make them. Because if you had, the case would have been over.
O'Reilly: Did Rubin tell you that?
Gately: No, I was present briefing him, and the subject came up, "Well, Mr. Secretary, when do we brief, when do we brief, when do we bring this information, or brief the State Department, when do we brief the National Security Advisor, when do we brief the White House?" And he said, "We don't. And we don't brief Mexico."
O'Reilly: Did he say why he wouldn't brief the White House?
Gately: He didn't have to. It was clear to everyone in the room, if you did, that it was no longer a secret.[4]
O'Reilly: And then Rubin left, and Kelly shut down the operation. The Customs Commissioner, Ray Kelly.[5]
Gately: Well, he wasn't Customs Commissioner at the time. He was the Undersecretary to Robert Rubin. Now, I don't know what kind of discussion Mr. Rubin had with Mr. Kelly when I left the room. I just know what Mr. Rubin said when I was in the room, and that was that this operation goes on, and we do not brief these people, not until, and his words were, "We don't tell the Mexicans until the last one's in the paddy wagon."
O'Reilly: Right. That's for sure. But President Clinton not knowing about this, because he would put a halt to it. And then, subsequently, you were told, "Knock it off! No more!"
Gately: That's right.
O'Reilly: All right. Mr. Gately, thanks very much for coming in. We're going to continue the story. We hope you come back.

 

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