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They are likely to also be forbidden from dollar clearing for a time, possibly up to a year. This is an unheard of penalty and is actually very punitive. It's
by scotch_drinker 12y ago
They are likely to also be forbidden from dollar clearing for a time, possibly up to a year. This is an unheard of penalty and is actually very punitive. It's a new strategy by the US prosecutors and there was a good Planet Money podcast recently on what it means. Essentially, because we control the reserve currency of the world, we control the ability to transfer foreign currencies into dollars. This is a very powerful thing to control and being restricted from dollar clearing will likely be pretty painful.
- joosters 12y agoYes, they are banned from some dollar-based transactions for a year, from the start of 2015 http://www.bbc.co.uk/news/business-28099694 http://www.bbc.co.uk/news/business-28099694
- joezydeco 12y agoHere's the link to that Planet Money podcast. It's a very well-done story, but frustrating that in the end nobody is going to jail. http://www.npr.org/blogs/money/2014/06/18/323045793/episode-547-how-to-punish-a-bank http://www.npr.org/blogs/money/2014/06/18/323045793/episode-...
- Scoundreller 12y agoWhy not just fine them more? This embargo just forces groups to come up with creative solutions around dollar clearing that could harm the dollar's status as a reserve currency.