“According to the Government Accountability Office, nearly all of America’s top 100 corporations maintain subsidiaries in countries identified as tax havens. As the GAO notes, there could be reasons other than avoiding the IRS to set up branches in places such as Singapore, Luxembourg and Switzerland, where taxes are light or nonexistent and keeping clients’ illicit secrets is considered a matter of national pride.
But what reason other than evasion could there be for Goldman Sachs Group to set up three subsidiaries in Bermuda, five in Mauritius, and 15 in the Cayman Islands? Why did Countrywide Financial need two subsidiaries in Guernsey? Why did Wachovia need 18 subsidiaries in Bermuda, three in the British Virgin Islands, and 16 in the Caymans? Why did Lehman Brothers need 31 subsidiaries in the Caymans? What do Bank of America’s 59 subsidiaries in the Caymans actually do? Why does Citigroup need 427 separate subsidiaries in tax havens, including 12 in the Channel Islands, 21 in Jersey, 91 in Luxembourg, 19 in Bermuda and 90 in the Caymans? What exactly is going on at Morgan Stanley’s 19 subs in Jersey, 29 subs in Luxembourg, 14 subs in the Marshall Islands, and its amazing 158 subs in the Caymans? And speaking of AIG, why does it have 18 subs in tax-haven countries? (Don’t expect to find out from Fox News Channel or the New York Post, because News Corp. has its own constellation of strange subsidiaries, including 33 in the Caymans alone.)”
“…On the tiny island of Jersey in the English Channel, for instance, the authorities responded to political pressure from hedge funds, which have placed more than $80 billion in deposits there, by establishing a “zero regulation regime” last year that literally removed all restrictions and reporting on financial transactions. Jersey’s counterparts in Guernsey and the Cayman Islands responded by assuring the hedge funds that they, too, would consider abolishing all regulation.”
How much more evidence do we need to prove that these corporations are greedy, pathological monsters that abuse the public interest with impunity!?
I thought the collapse of the financial system would bring them down a notch, but instead the FED is handing over trillions, and they we see daily that they continue the same practices.
Revoke the corporate “I.”