This is what Gordon Brown said to Congress today:
On jobs, you the American people through your stimulus proposals could create or save at least 3 million jobs. We in Britain are acting with similar determination. How much nearer an end to this downturn would we be if the whole of the world resolved to do the same? And you are also restructuring your banks. So are we. But how much safer would everybody's savings be if the whole world finally came together to outlaw shadow banking systems and offshore tax havens?
Let me repeat that:
How much safer would everybody's savings be if the whole world finally came together to outlaw offshore tax havens?
Answer: enormously.
Now deliver on the promise Gordon. Please.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
How much safer would everybody’s savings be if the whole world finally came together to outlaw offshore tax havens?
The world’s current situation didn’t arise because of offshore banking. So how can the banking system be more “safer” with or without them. I understand the US & EU are hurting, but please make plausible or supportable comments in terms of where you lay blame. Eliminating offshore banks does what?
The current failure in the banking system results because of the poor regulation of on-shore banks, which the US & EU governments are now financially backing. I might add, without substantive changes in the way they operate. From a historical perspective, it seems “onshore” regulators have learned little from the lessons of the Great Depression.
It’s easy to deflect away from the real issues. Is Bermuda a real issue or a political plus?
NE
BTW, most offshore banks place money back onshore; and incur tax on same? Also, unlike Switzerland, Bermuda has no secrecy laws to which you refer? In fact, we have a information exchange arrangement with the US. So please, I’d like to know, what is your definition of a tax haven?
Why do you bother saying things like that? You know he has precisely zero interest in outlawing tax havens. None at all.
Brown will be out by the time they even try to make offshore finance go along with their dreams. It is all nonsence, look at the USA debt clock for starters and you can see why the American Dream will cost us all dearly. So called offshore finance centres have nothing to do with it so it will never happen.
[…] Day by day more and more people are convinced that action needs to be taken against tax havens. Gordon Brown has now been added to the list of Barack Obama, Angela Merkel and Nicholas […]
I fear Steve Bell may be right: http://www.guardian.co.uk/commentisfree (today only).
Leonard, so why did he say it? In such strong language that he will have difficulty backing off it?
Matt – it’s 2 months for the STHAA to be law in the US. Obama is there to stay for now.
Sirron – you’re right – the economic crisis started onshore – but was facilitated offshore by the smae banks that created it onshore. They could create it onshore because of te lax (effectively non-existentn) regualtion of offshore which gave them the ‘get out of regualtion free’ card they needed in places like London – which has brought our economy to its knees.
Unless we close the regulatory loopholes of offshore banks will argue against regulation onshore. The race to the bottom and destruction will continue. That’s why we have to close you down. And will.
Richard
Have you seen the Steve Bell cartoon in the Guardian?
http://www.guardian.co.uk/theguardian/cartoon/2009/mar/05/gordon-brown-obama-administration
[…] Day by day more and more people are convinced that action needs to be taken against tax havens. Gordon Brown has now been added to the list of Barack Obama, Angela Merkel and Nicholas […]
[…] as we now know Gordon Brown is on board, at least with the last of […]
@ Sirron Nibbe
If all these Tax Havens and Sanctuaries were transparent,had uniformity regarding Law,tax,and legislation people could understand better and quicker what was going on. Now the Resesion and depression will last longer,as I wrote months ago Britain should have acted years ago,that Europe would ACT and America must ! that was before Mr Madeof,and Stanford
and there are others pending in the Hedge Funds industry,and the Pensions
schemes,theres 11 million voting Pensioners,and elections are on the way,so its a Bad time for Bad news.For a finale where do you think the Bank Managers keep there Bonuses ? and Pensions ? they should turn the satellites off,close the Stock Exchanges and Trade with World Independent Regulated trading blocks such as China,India,Brazil,Middle East,Japan and Indonesia,Europe and Russia,along with America,Canada and Australia.Offshore Banking Islands are History ask the gruesome twosome on Sark.
I find it very difficult to understand what are you referring to. What is a tax haven? Is Bermuda a tax haven? Is Bermuda regulated? I would ask you to do some research on Bermuda. Quite frankly your broad paint of the brush is unjustified; particularly as it relates to Bermuda. Are you familiar with types of regulations we have here in Bermuda? Do you know that Bermuda complies with most BASEL principals for banking regulations? We only have four major banks in Bermuda. Three local grown and HSBC? We also comply with Proceeds of Crime and other legislation.
I challenge you all to do your homework before you just jump on the bandwagon of bashing countries you believe to be tax havens, when in fact they are not! If you want to better understand laws in other SOVEREIGN jurisdictions you call tax havens, it’s easy. Most have laws on-line. Go to http://www.bermudalaws.bm online.
BTW, yesterday our government just underwrote the capital of one of our largest banks. Why? Because its balance sheet had toxic mortgage assets emanating from the US. So who is negatively impacting whom? Perhaps you should better regulate your banking system. For starter, why not better regulated hedge funds?
Again, I must say that your views, particularly on Bermuda, are uninformed. As a KPMG alumnist, I find it difficult to believe that you continue to advocate your uninformed opinions.
Please do some research!
If the Cap fits wear It ! Then you wont mind the Satellites being turned off until this is regulated then.If you have nothing to hide then you have nothing to fear. That will be all of them at the same time you understand ?.
This is to give the Super computer time to digest the New System of accounting.
@Richard Murphy
Richard:
I’m not sure I understand what you mean. Derivate instruments are almost not, if never, generated “offshore”, so are SDO’s an offshore problem? Similarly, mortgage backed securities are almost always generated “onshore”. So what does that have to do with offshore financial centers.
If people are hiding funds offshore or in another country (offshore doesn’t account for all issues you address), where information exchange doesn’t exist, then that’s another story. Of course, that does justify bullying banks such as UBS is currently experiencing.
However, you fail to outline what the lack of banking regulation that applies, as you describe, to ALL “offshore” jurisdictions; which by the way are SOVEREIGN nations which cannot be shut down. The only thing onshore countries can do it to discourage onshore individuals and companies from operating outside their jurisdiction or with countries you describe as “offshore”.
Limiting the use of your so called “tax havens” will not solve issuesfacing countries like the US and EU (UK). Let’s face it, you’re kidding yourself if you believe that offshore financial centers are your primary demons. Let me paint a list:
1. Poor regulation of most exchanges. If countries allow the price of a basic commodities to spiral 300 times upwards within one year, crisis will continue.
2. Non sensible regulation. As long as you believe the markets fix everything and should NOT be regulated, we’ll see this again.
3. Inefficient governments. As government continue to waste tax revenues, tax shortfalls will continue.
4. Plain ole greed. As long as leaders allow lobbyist to influence their decisions (short term over long-term goals), issue will continue.
5. Auditors who help to conceal corporate fraud for the sake of greed…
I can go on, but I think you get the picture.
BTW, I haven’t yet outlined the many advantages to the onshore world provide by certain offshore financial centers. Bu of course, you already have advocated those?
CLOSE YOUR OWN TAX HAVENS, LUXEMBOURG TELLS US
http://www.royalgazette.com/siftology.royalgazette/Article/article.jsp?articleId=7d940ab3003003e§ionId=65
@ Simon Nibbe
Perhaps you heard radio 4,s ‘File on Four ‘ yesterday about the ‘Land Registry Scam ? so far it,s cost the TaxPayer 8 million this year alone.and it could cost anything up to 100 million ? I hope Mr Richard Murphy and his Team scrutinize this little set up. It was of course Based in Bermuda,which is also part of the Scam. I,m not clever enough to investigate these things,but I assure you,I Know people who ARE !.
Far far less than the scams your onshore company’s cause?
Offshore banking indeed has a bad reputation, however it is not illegal as many people think. What can be illegal is using offshore bank accounts for money laundering or tax evasion. But the thing is that you can evade taxes or engage in money laundering with normal bank account as well.
Yes Offshore Expert: some people murder as you may have noticed, which doesn’t make it OK for you to do so as well
But that’s the exact logic of your argument
Not a good one, is it?
No, that’s not the logic of his argument.
His argument is that offshore banking is not illegal but that it can be used for illegal activity, as can an onshore bank account. In other words, it is not the product itself (bank accounts, whether onshore or offshore) that is the issue, but the use to which they are put.
Another apologist for crime
Of course all bank accounts can be used for crime
Some aren’t set up for the purpose in a state that condones it
That is what happens in secrecy jurisdictions
Secrecy jurisdictions are places that intentionally create regulation for the primary benefit and use of those not resident in their geographical domain. That regulation is designed to undermine the legislation or regulation of another jurisdiction. To facilitate its use secrecy jurisdictions also create a deliberate, legally backed veil of secrecy that ensures that those from outside the jurisdiction making use of its regulation cannot be identified to be doing so.
Which is why HMRC is having to work so hard to get data on those who are abusing – in the face of opposition from the banks, who by implication support the crime
Richard
A car can also be used for crime and/or in a manner which breaks the law. Why are even family cars produced so that they are capable of doing 100mph-plus when there is nowhere that I’m aware of that has a speed limit above 70mph/120kph ? Are we going to outlaw cars just because they can be used to break the law by those who are that way inclined ?
Would that make Vauxhall an apologist for crime ? Likewise knife manufacturers ? I’m sure they aren’t made specifically for stabbing people after all.
Rupert
But cars don’t come with a toolkit of people attached telling you how to break the law, nor knives either
Offshore bank accounts do
It’s inherent in the secrecy you all peddle
Richard