Tag Archives | Organized Crime

Want To Get Into A Recession-Busting Business? Join The Mafia

From Reuters:

Italy’s mafia crime syndicates bucked the recession in 2009 to raise ‘profits’ by almost 8 percent with the financial crisis making companies and even the stock market even more vulnerable to cash-flush mobsters.

“Mafia Inc. is reinforcing its position as the number one Italian company,” said a report published on Wednesday by a body whose members bear the brunt of mafia extortion and crimes, the small business and shopkeepers’ association Confesercenti.

It estimated that the impact on business equaled about 7 percent of Italy’s economic output, enjoying healthy growth in a year when the Italian economy shrank by almost 5 percent.

Experts had predicted when the crisis began that Calabria’s ‘Ndrangheta, with its huge slice of the global drugs trade, Sicily’s Cosa Nostra, Naples’ violent Camorra and Puglia’s Sacra Corona Unita would see more demand for loan-sharking.

But the report said mobsters had also been able to launder their earnings by buying up cheap assets and had found a cheap and willing workforce among the newly unemployed…

[continues at Reuters]

Read the rest

Continue Reading

Drug Money Rescued The World’s Banks

Who were the heroes who brought the United States and the rest of the world away from the brink of financial catastrophe this past year? Time person-of-the-year Ben Bernanke and co.? Nope, more like the Mexican Mafia. From the Guardian:

Drugs money worth billions of dollars kept the financial system afloat at the height of the global crisis, [says] the United Nations’ drugs and crime tzar.

Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organized crime were “the only liquid investment capital” available to some banks on the brink of collapse last year. He said that a majority of the $352bn of drugs profits was absorbed into the economic system as a result.

This will raise questions about crime’s influence on the economic system at times of crisis.

Read the rest

Continue Reading