Drug Money Saved Banks During Financial Crisis: U.N.

The money deposited by organized crime syndicates saved a few banks from collapse due to the financial crisis last year, according to a U.N. official.

 NEW YORK CITY, N.Y. — The money deposited by organized crime syndicates saved a few banks from collapse due to the financial crisis last year, according to a U.N. official.

Said Antonio Maria Costa, the head of the U.N. Office on Drugs and Crime:

“In many instances, the money from drugs was the only liquid investment capital. In the second half of 2008, liquidity was the banking system’s main problem and hence liquid capital became an important factor.”

Costa declined to the UK Observer which countries or banks were saved in this way because his job is to speak to the problem only, not lay blame.

However, the Observer noted, “It is understood that evidence that drug money has flowed into banks came from officials in Britain, Switzerland, Italy and the U.S.”

In all, organized crime had an estimated $352 billion in drug money laundered through the banks over the last two years, the newspaper reported.