Most US stimulus loans based in the Cayman Islands
(Muckety): Records released last week by the Federal Reserve provide a new perspective on government tolerance of offshore tax havens. Of the 169 foreign investors in a stimulus program designed to re-invigorate consumer lending, the majority – 102 – were based in the Cayman Islands. Twelve others were based in Bermuda. In March 2009, the US government launched the Term Asset-Backed Securities Loan Facility, or TALF. The program provided low-cost, low-risk loans to companies buying bonds backed by auto and student loans. Loans of more than $71B were approved between March 2009 and March 2010. About 20% of the investors in these transactions were based outside the U.S at a time when the White House was calling for restrictions on offshore tax havens.
Category: Business
