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Article updated: 12/18/2012 6:35 AM

Too big to jail? Execs avoid laundering charges

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HSBC avoided a legal battle that could further savage its reputation and undermine confidence in the global banking system by agreeing Tuesday Dec. 11, 2012 to pay $1.9 billion to settle a U.S. money-laundering probe.

Associated Press

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When the Justice Department announced its record $1.9 billion settlement against British bank HSBC last week, prosecutors called it a powerful blow to a dysfunctional institution accused of laundering money for Iran, Libya and Mexico's murderous drug cartels. But to some former federal prosecutors, it was only the latest case of the government stopping short of bringing criminal money laundering charges against a big bank or its executives.