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Petrobras-linked money laundering probe spreads to banks

  • Brazil's money laundering probe linked to state-run Petrobras (PBR -1.2%) is spreading to financial institutions as prosecutors investigate whether they met compliance requirements.
  • Court documents cite units of banks including Citigroup (NYSE:C), Banco Santander (NYSE:SAN) and HSBC, as well as Brazil-based Itau Unibanco (NYSE:ITUB) and Banco Bradesco (NYSE:BBD) as holding accounts or executing operations linked to the alleged laundering of 10B reais.
  • The refining division at Petrobras already is under investigation for runaway spending including alleged inflated contracts to suppliers, and is cited as one of the possible sources of cash being laundered in the case dubbed “Car Wash” by police.
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Comments (7)
  • thotdoc
    , contributor
    Comments (1838) | Send Message
     
    Really....Banks engaging in criminal acts???

     

    Of course, if no one goes to jail and the fines are a slap on the wrist...is the act really Criminal?
    12 Aug 2014, 12:07 PM Reply Like
  • User 509088
    , contributor
    Comments (1206) | Send Message
     
    heh heh heh

     

    if a fraud is done in the forest, and nobody does anything about it....

     

    good 'un!
    12 Aug 2014, 12:18 PM Reply Like
  • DougRk
    , contributor
    Comments (1620) | Send Message
     
    @thotdoc, completely off topic, but I checked your website on a whim and looked at your strategy chart. Unbelievably accurate assessment of my mental makeup. Scary accurate.
    12 Aug 2014, 01:29 PM Reply Like
  • june1234
    , contributor
    Comments (3125) | Send Message
     
    Citigroup of course. You know they're not missing out on that. They are calling it "car wash". I like that. I'll take the deluxe wash here's $1 billion.
    12 Aug 2014, 01:58 PM Reply Like
  • Mosade16
    , contributor
    Comments (6) | Send Message
     
    Gasoline prices expected to rise from 5.5% to 6% after elections, says government source
    The calculation of the adjustment is still preliminary and will serve to give some relief to prices for Petrobras, according to the source
      Share on Facebook Share on Twitter Share on Google +1 Print E-mail Tuesday, August 12, 2014 08:38. Reuters
    The federal government should raise the price of gasoline at the refineries between 5.5 and 6 percent this year after the October elections, told Reuters on Monday a source close to the core of the executive government.

     

    The calculation of the adjustment is still preliminary and will serve to give some relief to prices for Petrobras, the source said. The state has been working with lagged prices compared to the international market, which causes losses in its supply area.

     

    The decision by the increase now takes into account the cooling inflation should give this semester, the need to strengthen the Company's cash and the rule of annual rise in fuel prices.

     

    Last week, in an interview with Reuters, the finance minister, Guido Mantega, had already indicated that gasoline prices would be high in 2014.

     

    The last time there was increase in gasoline prices was in November last year, when Petrobras announced an average increase of 4 percent of gasoline and 8 percent in diesel refineries. At the time, experts estimate that the gas discharged from the final consumer would be about 3 percent.

     

    "The increase (this year) will give a mattress to Petrobras that, in the event that triggered the price of a barrel out there, no need to make any sudden movements of domestic prices. Likewise you will not have to deal with price distortions if there downward movement in international prices, "said the source.

     

    In July, the price of gasoline sold by Petrobras in Brazil was 14 percent on average below international values​​, according to a survey of GO Associados.

     

    PRIMARY
    The source, who spoke on condition of anonymity, also said the government "already know" that will not meet the primary surplus target this year of 99 billion dollars, equivalent to 1.9 percent of Gross Domestic Product (NYSE:GDP) due to the slower growth of the collection, shaken by weak economic activity.

     

    "The revision of the target is on the agenda of the government. Already know that the government will not achieve the surplus target (this year)," he said, adding that the assessment already takes into account the extra revenues with tax debt refinancing (Refis ) of 18 billion dollars and 8 billion dollars from the auction of 700 MHz licenses for mobile telephony fourth generation.

     

    "The problem is the low revenue growth and high exemptions," he added.

     

    Also told Reuters last week, Mantega left open the possibility of further reduction in the primary goal for 2014.

     

    This year, through June, the primary surplus was at 1.36 percent of GDP in 12 months.

     

    In 2013, although the government has readjusted the primary goal, failed to reach the goal. The savings to pay interest on the consolidated public sector stood at 1.9 percent of GDP, worse historical result and below the 2.3 percent of GDP that was the goal.

     

    Luciana Ottoni
    Editing by Patricia Duarte
    12 Aug 2014, 10:49 PM Reply Like
  • Mosade16
    , contributor
    Comments (6) | Send Message
     
    Gasoline prices expected to rise from 5.5% to 6% after elections, says government source
    The calculation of the adjustment is still preliminary and will serve to give some relief to prices for Petrobras, according to the source
      Share on Facebook Share on Twitter Share on Google +1 Print E-mail Tuesday, August 12, 2014 08:38. Reuters
    The federal government should raise the price of gasoline at the refineries between 5.5 and 6 percent this year after the October elections, told Reuters on Monday a source close to the core of the executive government.

     

    http://bit.ly/1upWTSK
    12 Aug 2014, 10:50 PM Reply Like
  • SanDiegoNonSurfer
    , contributor
    Comments (3460) | Send Message
     
    HSBC in trouble again. They were caught previously laundering Mexican drug money. Lawsuits for securities fraud, price fixing in the silver markets, list goes on and on.
    13 Aug 2014, 12:40 AM Reply Like
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