Sanction threat still aimed at offshore banks

| 31/01/2010

(CNN): Countries that provide offshore havens for risky financial practices could face U.S. sanctions similar to Iran says the US’ Barney Frank (D) of Massachusetts chairman of the influential Financial Services Committee. Financial regulation has dominated discussions at the World Economic Forum in Davos, a week after U.S. President Barack Obama announced plans for a far-ranging overhaul of the nation’s banking system. "We are then ready to say to smaller countries, including our host country right here, Switzerland, ‘if you hold yourself out as an escape hatch, we will prohibit banks from your countries doing business in the U.S.”

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  1. au revoir says:

    Crooks don’t like competition; the better the competition, the higher the dislike…

  2. Anonymous says:

    with all the money in the banks in the cayman islands and the Goverment is  broke sanctions wont make a differents would it.BOZOS

  3. S C says:

    Another case of the US trying to do with foreign policy what it can’t do at home…

  4. Anonymous says:

    What about the whole onshore tax mitigation industry that works tirelessly to reduce the amount of tax paid by its onshore citizens?

    Everything from tax software than completes the tax forms for you and promises to get you the largest tax refund possible, to strategic onshore tax planners for HNW individuals aiming to reduce or delay tax due through Nevada or Delaware entities, there is a far larger parasitical industry based right there on your doorstep.

    What happens offshore (in my firm at least) is typically fully declared, tax neutral – meaning it costs the US taxpayer nothing. 

    The far bigger tax parasite, draining your tax coffers, is under your nose.

    • Down to Earth says:

      Barney Franks is typically a "Woodpecker" – pure biting, no solutions!

  5. Confucioused says:

    "Countries that provide offshore havens for risky financial practices could face U.S. sanctions similar to Iran"  – Rep. Barney Frank

    LOL!!!!!!  Where was AIG located?  And Bernie Madoff located?  Where was Enron located?  And Bear Sterns, B of A, Merrill Lynch?  How about the Savings and Loans disaster? What about WorldCom. Where did that happen?

    Here’s a hint:  it begins with U (you)

    Here we go again.  The good ‘ol US of A lecturing on financial morals.  While it’s own Federal Reserve continues to rip off the country, banksters elicit huge bonuses paid for with taxpayer money, and government officials remain on the payroll of lobbyists from Wall Street.

    Barney….why don’t you stay just a little more concerned with cooking the books, hanky panky and financial criminality within the United States instead of posturing to the rest of the world that the $tar $pangled banner is going to lead the way?

    This would be funny if it weren’t so pathetic.

    What a bunch of hypocrites.

    • But says:

      Every one of those institutions suffered massive their massive losses through offshore vehicles.  That is the point.

      Cayman is a parasite.  That is the reality.  Thequestion is are we a parasite that causes too much harm to our hosts.  Some people think the answer is "Yes".

      • frank rizzo says:

        I think the answer is NO! Every one of those institutions/persons mentioned are/were ‘effin crooks, and that is the root cause of the losses. Plain and simple. If a criminal murders someone with a butterknife (Cayman) does one sanction butterknives (Cayman) to prevent further murders?

        • Anonymous says:

          Just to clarify: the post beginning "well said Mr Frank" refers to Barney Frank and not Frank Rizzo!!!!

      • Anonymous says:

        And Bernie Madoff located?

        Actually all the US regulators poor job.

        The only offshore part were the investors who lost a lot of money.

        Speak to nearly all the nationalities in the world and they will cal the US the parasites.

        Look what your multinationals do to developing nations. Stripping natural resources for cents on the dollar and paying off corrupt officials to do it.

        You and your kind make me sick

    • noname says:

      I agree that they are hypocrites, but it is the damn democrats that are the hypocrites. They always fight against tax havens & offshore centres, but as you point out they have the same issues in their country. The democrats are like the Labour party in England, they attack Cayman with a passion while ignoring the same problems in their country. I agree, the democrats in America & the Labour party in England are a bunch of hypocrites.

  6. Anonymous says:

    Well said Mr Frank! We accept the normal bullying imperialist role  that you Yankees have taken over from the UK.  All the "risky financial practices" of recent years didn’t happen on Wall Street but in these nasty offshore centres. Jawhol mein Fuhrer.

     We will be looking to you to apply the same standards to Nevada and Delaware, of course.

    • The foreigner says:

      When the Wall Street sneezes, the Cayman "financial sector" catches cold. That sector employs fewer people than any one building in Manhattan contains. Better run and hide than duke it out with Barney. Pray the hospital project materializes because all it takes is a sentence or two in a bill or two in Congress and the "financial sector" is toast.

      • Anonymous says:

        "the hospital" will bring another set of problems and hopefully those in the administration flirting with that one fully understands everything.