Harbours Of Resentment

[pongo]

i think that nobody has posted a link to this yet. FT. Dec 1.

 

Mods please merge or delete this if it has already been posted on one of the other threads.

 

You might have to register to read it (free and quick).

 

Harbours of resentment

 

In the Victorian seaside town of Douglas, a new mood of uncertainty has punctured the customary ebullience of the Isle of Man's senior legal and financial officials as they fret about the loyalty of their most powerful neighbour. "If jettisoned by the UK, we will have to fight tooth and nail for our survival," says William Corlett, the island's attorney general .....

[Gladys]

Interesting article, Pongo, thank you. The IOM seems to come out as one of the better jurisdictions. But, there are concerns and, as so many have said, we need to respond. Alan Bell and Malcolm Couch must get together and 'work' this negative publicity.

[Snaipyr]

There was an interesting programme on RTE 1 TV last night about National Irish Bank's tax evasion scheme involving CMI on the IOM. Although it was made clear that this happened in the late 1990's, it would still add to the negative view of the IOM, yet who in the government here would even see it, never mind respond?

[triskelion]

There was an interesting programme on RTE 1 TV last night about National Irish Bank's tax evasion scheme involving CMI on the IOM. Although it was made clear that this happened in the late 1990's, it would still add to the negative view of the IOM, yet who in the government here would even see it, never mind respond?

I'm not sure they should anyway. If someone in the executive makes a rebuttal statement every time someone says something disparaging about the Isle of Man, then I feel all that would do is create an impression of acute paranoia on our part.

 

I wouldn't be surprised if the above programme was a re-hash of an older programme rushed out so as to provide some topical content.

[Max Power]

There was an interesting programme on RTE 1 TV last night about National Irish Bank's tax evasion scheme involving CMI on the IOM. Although it was made clear that this happened in the late 1990's, it would still add to the negative view of the IOM, yet who in the government here would even see it, never mind respond?

I'm not sure they should anyway. If someone in the executive makes a rebuttal statement every time someone says something disparaging about the Isle of Man, then I feel all that would do is create an impression of acute paranoia on our part.

 

I wouldn't be surprised if the above programme was a re-hash of an older programme rushed out so as to provide some topical content.

 

I agree, but it looks like we are going to be in for a bit of a bumpy ride in any case. It's time to start strengthening our arsenal. get onto a war footing, and be ready to repel the onslaught which inevitably will come!

 

We also need to be looking hard at our alternatives and investing in them as best we can.

 

What do the powerful nations suggest we do to maintain our economy? If they want to close us down they surely have an obligation to assist us? They give opium and cocaine growers assistance to diversify!

[Cronky]

Also in the FT was this letter from a couple of American academics:

 

It’s nonsense to fault offshore financial centres

 

. . . you repeat the silly claim by the Organisation for Economic Co-operation and Development that the current financial crisis has “brutally exposed the risks inherent in small countries with large financial sectors”.

 

As anyone who has read the FT’s coverage of the financial crisis would know, its roots lie not in Grand Cayman or the Isle of Man but in New York and London. If there has been any “brutal exposure” it is of the inadequacies of the US and European Union oversight of their financial systems.

 

Second, your article suggests that Cayman and others “thrived” because the second half of the 20th century was “free-wheeling”. Nonsense. Cayman and the other top offshore financial centres all have more rigorous anti-money laundering regulatory regimes than the US or any member of the EU. Our research into OFCs has consistently shown that they have better legal tools and tougher standards than do most onshore jurisdictions.

 

Third, while institutions in OFCs may well have $6,000bn on their books, that money is not sitting in safe deposit boxes in Grand Cayman or Jersey. It is invested in assets located virtually everywhere else. Indeed, it is the US and the EU that benefit most from foreign direct investment channelled through OFCs. Blocking these capital inflows in the midst of a liquidity crisis would be folly.

 

We have together taken dozens of US law students to study the Caymanian legal system, interviewed professionals throughout the offshore world, and conducted research into the history and current status of several of the largest OFCs. Our teaching and research have shown us both the importance of OFCs to the functioning of onshore economies and the high standards prevalent among the more reputable OFCs.

 

Attacking the offshore sector may be politically popular in Paris, London and Washington, but it has nothing to do with resolving the global financial crisis.

[Max Power]

That's the kind of opinion we need on our side!

It's the old story of being able to make anybody believe what you want them to believe if you can say it loud enough for long enough. That's what we are becoming the victim of and it's time we fought back!

[Mutley]

Is that the whole letter? If not can you put it all here as the site won't accept registrations at the minute. Thanks

[Cronky]

Is that the whole letter? If not can you put it all here as the site won't accept registrations at the minute. Thanks

 

Effectively it's the whole letter minus salutations.