A Review Of The Outlaw Bank

k that is the subject of this review is The Outlawbeing to compromise or buy off any possible
Bank: A Wild Ride into the Secret Heart of BCCI, byregulation of its illegal activities. The bank was also a
Jonathan Beaty and S.C. Gwynne. It was originallyprincipal player in money laundering and drug
published in 1993, and tells the story of the infamoustrafficking, with some of their more famous clients
Bank of Credit and Commerce International and howbeing Manuel Noriega of Panama and the Columbian
the author’s penetrated some of the mostdrug-trafficking Medellin cartel.
closely-held secrets of the bank and it’sSome of the more interesting aspects of this Black
so-called Black Network, which was alleged to haveNetwork involve the weapons deals that BCCI
been involved in money laundering, drug trafficking,facilitated. These transactions are often described in
and weapons sales in both the First World and Thirdthe book in detail or provided in lists of exhausting
World countries.deals between various governments. Every major
The authors separate their story into four distinctcountry in the Middle East is identified as a client of
sections. The first and third sections deal mainly withBCCI in one way or another, including Iraq, Iran, and
their own experiences in tracking down the BCCIIsrael. BCCI also shows up in the story of George W.
story. The second section of the book presents aBush, when he was a director of Harken Energy that,
brief overview of the economic conditions andwithout having any offshore drilling experience, was
geopolitical and historical situation that allowed theawarded a drilling concession for an offshore oil field
bank to flourish. The final section of the book ties upin Bahrain that was worth millions of dollars.
some of the loose ends and analyzes the entireOther areas that the authors focus on include the
story of BCCI and its dealings throughout the worldbank’s involvement with William Casey and
from its start in 1972 until it was shut down in 1991.the CIA, the secret BCCI ownership of American
Throughout the book, the authors make it a point tobank First American, New York District Attorney
switch between the more technical and dense issuesRobert Morgenthau’s case against BCCI, and
of financial markets, black markets, and history, andthe unwillingness of the US Justice Department to
their own involvement in the story as reporters forlook seriously into the wide-ranging allegations against
Time magazine and independent researchers. Thisthe bank. The authors present these topics
provides the book with a much faster-pacedthroughout the book as their paths cross with the
narrative than most books that present the historicalmajor players in the BCCI story, and show that the
facts and analysis, as the authors of The Outlawthreads in this story lead to nearly all of the major
Bank were able to penetrate very deeply into theplayers in the Middle East during the era in which
bank’s hidden dealings in weapons and theBCCI operated.
black market in general. These corrupt dealings wereThe final point the authors have to make is that no
so rampant in the bank that Robert Gates, formersignificant banking regulations have been changed to
Director of Central Intelligence under Bush I andprevent another BCCI from appearing, fleecing billions
current Secretary of Defense under Bush II, referredof dollars from its depositors, operating illegal
to the bank three years before it was shut down asthroughout the world, and shutting down with
the “bank of crooks and criminals,” an aptvirtually no assets available to pay back its creditors.
analogy.The only difference between BCCI and other banks
In fact, it is this involvement the authors had withwas simply scale: BCCI was the most corrupt, largest
various players in BCCI’s “BlackThird World bank ever to have been shut down. And
Network” that provides the most interesting partsthere is nothing to prevent another BCCI from
of the story. BCCI made it a policy to buy influenceengaging in the same exact activities.
in as many governments as possible, one reason