Do they read this in Cayman?

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Cayman NetNews is on the ball, as usual, this morning. Reacting to the US GAO report on major US compnaies using tax haven subsidiaries it says:

Needless to say, some US politicians have pounced on the GAO report as further justification for proposed legislation aimed at offshore financial centres.

According to Reuters, two Democratic senators said they would introduce legislation to stop US companies from using offshore havens that deprive the Treasury Department of an estimated $100 billion annually in lost tax revenues.

Equally predictably, the banks involved will attempt to justify their offshore operations.

Which group is likely to prevail? It is hard to tell at this point but two of the largest recipients of government assistance - one on each side of the Atlantic - the Royal Bank of Scotland (RBS) and Citigroup - have operations of some kind in the Cayman Islands. RBS has a banking licence in its own name and also operates here as RBS Coutts. Similarly, Citigroup is also licensed in the Cayman Islands as Cititrust.

On the premise that forewarned is forearmed, it would behove both public and private sector leaders to immediately take urgent steps to identify the possible exposure of our financial services industry to a mass pullout by foreign banks now controlled by their respective governments and the economic and social implications such an event will have on the Cayman Islands.

Who says things aren't changing?