Thursday, February 05, 2009
Off-shore (especially Western Hemisphere) jurisdictions are coming under increasing pressure to open their collective financial books and investors to the scrutiny of U.S. authorities. The hearings yesterday from the Mad0ff scandal will only add urgency to that charge.
I won't get into the long-term implications here. (but I will say that Bermuda, the Cayman's, Cuba, and perhaps even the Loyalist Bahamas will enter U.S. statehood at some point)
I don't know how this increased attention will effect the several thousand off-shore captive insurance companies operated by U.S. companies, and any remarks to that effect would be appreciated.
The net result is the U.S. still has a monopoly on well-functioning capital markets and security...and it will start charging a little more vig to play the game.