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Everett Stern, who worked at HSBC Bank USA for two years, has given federal authorities emails and other documents that, he says, show HSBC committed anti-laundering violations beyond those covered by its $1.9 billion settlement. He has urged them to open a new investigation.
August 30 -
Two senior House Democrats introduced legislation Thursday designed to give regulators additional authority to go after bank executives at institutions involved in money laundering scandals.
October 24 -
HSBC's record-setting $1.92 billion penalty for a slew of anti-money laundering problems surprised many in the financial industry, who warned it could set a new precedent for targeting other institutions.
December 11
A bank whistle-blower is seeking a more powerful position from which to hold too-big-to-fail companies accountable.
Everett Stern, a former HSBC employee who last summer called for fresh investigations into the company's money-laundering controls, has launched a bid for Congress. Stern is campaigning to be the Republican nominee for the seat in Pennsylvania's 13th district, which spans the northern suburbs of Philadelphia.
Incumbent Allyson Schwartz plans to give up the seat as she seeks to become the state's governor. Stern is currently raising money and gathering signatures to have his name on the ballot for the Republican primary in May.
"These banks are going to have a real problem when I get into office," Stern said. "It's going to be funny when the whistle-blower is sitting there as a congressman."
Stern, who worked in HSBC Bank USAs anti-money-laundering division in 2010 and 2011,
Stern's campaign is rooted in his frustration that the government has not taken stronger action against banks that have violated the law. Beyond that, Stern sees banking scandals as a symptom of widespread apathy that he hopes to battle as a member of Congress.
"HSBC's story is not just about HSBC. It's about people not caring and the government not caring," he said.
Stern decided to seek office this past fall, after he met with Rep. Maxine Waters, D-Calif., the top Democrat on the House Financial Services Committee, to discuss his claims.
Waters later
Stern knows that, with his financial constraints, he faces a tough job getting elected. At least three other candidates are seeking the Republican Party's nomination to take the seat, and the Democratic candidates are led by Marjorie Margolies, a former member of Congress whose son is married to Chelsea Clinton. It is a "safe" Democratic seat for 2014 , according to the Rothenberg Political Report / Roll Call, an election-analysis website.
Yet he sees his outsider status as a potential benefit. Without a campaign staff, he has been working long hours to gather signatures and meet potential voters, in addition to working for the business-intelligence firm he founded, Tactical Rabbit.
"I'm hoping that American people see my sincerity and say, 'He's the real deal,'" he says. "I'm ending the [expletive]."
