In The News

Banks Cash In on Inversion Deals Intended to Elude Taxes

Andrew Ross Sorkin August 6, 2014
Big investment banks are financing merger deals that encourage US corporations to relocate headquarters overseas to dodge US taxes. The banks anticipate “nearly $1 billion in fees over the last three years advising and persuading American companies to move the address of their headquarters abroad (without actually moving),” reports Andrew Ross Sorkin, editor of DealBook for the New York Times....

Leaked Records Reveal Offshore Holdings of China’s Elite

Marina Walker Guevara, Gerard Ryle, Alexa Olesen, Mar Cabra, Michael Hudson, Christoph Giesen January 23, 2014
A report from the International Consortium of Investigative Journalists exposes secret offshore accounts among family members of high-ranking Chinese politicians and business leaders. The report is based on 2.5 million leaked files from two firms that assist with high-wealth trusts and banking. “As the country has moved from an insular communist system to a socialist/capitalist hybrid, China has...

America’s Role as Consumer of Last Resort Goes Missing

Simon Kennedy December 16, 2013
Household final consumption represents about 70 percent of US gross domestic product, yet “Cheaper fuel and raw materials are boosting manufacturing, making the U.S. more of a competitor to emerging-markets nations and less a reliable consumer of their goods,” reports Simon Kennedy for Bloomberg. The US recorded its lowest current-account deficit since 1999, assisted by new supplies of domestic...

The Perils of Falling Inflation

November 12, 2013
Central banks are national institutions that regulate currency and monetary policy. Typically, they are on watch against excessive inflation which can erode currency values. But low inflation that transforms into deflation may be a bigger problem. “As Japan’s experience shows, deflation is both deeply damaging and hard to escape in weak economies with high debts,” warns the Economist. “Since...

Global Sell-off Shows Fed Reach Beyond the US

Nathaniel Popper June 21, 2013
The activities of world’s central banks are intertwined in complex ways that are more apparent. The Federal Reserve, the US central bank, reviews international variables before setting policy and recognizes that its actions affect growth and inflation in foreign economies. Overseeing the largest economy while actively intervening on economic matters, the Federal Reserve is in the position that...

Bermuda Refuses to Sign Up to Cameron's Tax Evasion Deal

Patrick Wintour June 18, 2013
Tax evasion threatens government budget and programs. As the G8 meets in Ireland, UK Prime Minister David Cameron hopes to persuade G8 and other countries to sign agreements against tax evasion. The pressure may have been counterproductive. Craig Cannonier, Bermuda’s prime minister, is refusing to sign the OECD international agreement on tax information exchange. Crannoir argues that Bermuda is...

India Outsourcing Under Scanner After $45-mn Global ATM Heist

PTI May 10, 2013
Outsourcing by financial institutions is under new scrutiny in the wake of two massive bank heists spanning at least 24 countries. The thieves targeted two payment processing companies, one in India and the other in the United States, hacking computer systems that process MasterCard debit cards issued by two UAE banks, reports the PTI news agency in India. In two separate attacks, the organizers...