How the City of London invented offshore banking
theguardian.com
How the City of London invented offshore banking
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Re: How the City of London invented offshore banking
#2I'm skeptical offshore banking started with the brits in the 1940s. Wikipedia has banking starting around 2000 BC in Assyria and later ancient Greece. They also had islands with shores and I'm sure someone figured they might avoid hassle from the local rulers by taking their money to another island.
Re: How the City of London invented offshore banking
#3My theory is that The City was the primary force behind Brexit. They are by far the largest and most influential entity and one of the only few that are going to be better off after Brexit.
Even more, staying in the EU would actually jeopardize their special tax-heaven status as EU was moving toward more banking regulation. Note: EU rules or laws, once accepted by local parliaments, have the status of international law, which is above the local laws. Since The City has special exempt status in British legal system, accepting the EU banking regulation could potentially do away with their special "tax-heaven" status. So leaving the EU was actually a matter of survival for them.
Re: How the City of London invented offshore banking
#4I'm skeptical offshore banking started with the brits in the 1940s. Wikipedia has banking starting around 2000 BC in Assyria and later ancient Greece. They also had islands with shores and I'm sure someone figured they might avoid hassle from the local rulers by taking their money to another island.
The article covers all that.
Warburg missed the freedom, and excitement, of the German markets in the 20s and 30s. So created an instrument, Eurobonds, in the 1960s to escape the carefully constructed international limitations of Bretton Woods. Add further desire to be outside the system from the US not being a neutral arbiter of the postwar international currency. That led to the inspiration for Eurobonds: the Eurodollar market.
Thus course was set on the race to the bottom. The US came off the Gold Standard, Bretton Woods was deconstructed and most national regulations that responded to the depression and war were repealed along the way.
That Warburg managed to get away with something so artificially constructed to evade laws is, to say the least, disappointing.
Re: How the City of London invented offshore banking
#5My theory is that The City was the primary force behind Brexit. They are by far the largest and most influential entity and one of the only few that are going to be better off after Brexit. Even more, staying in the EU would actually jeopardize their special tax-heaven status as EU was moving toward more banking regulation. Note: EU rules or laws, once accepted by local parliaments, have the status of international l…
Quite the contrary. They lose passaporting rights with Brexit
Not to mention all the EU nationals they employ
> special tax-heaven status as EU was moving toward more banking regulation.
"Tax haven" status has "nothing" to do with banks, it has to do with taxation rules and agreements. (Some banking rules could have an effect, but in general they don't. Bank secrecy is something that has gone out the window a couple of years now, so it's indifferent)
Re: How the City of London invented offshore banking
#6My theory is that The City was the primary force behind Brexit. They are by far the largest and most influential entity and one of the only few that are going to be better off after Brexit. Even more, staying in the EU would actually jeopardize their special tax-heaven status as EU was moving toward more banking regulation. Note: EU rules or laws, once accepted by local parliaments, have the status of international l…
After Brexit, The City will lose passporting rights and It would lose a large portion of the EU market. Most of City banks are large multinational corporations that care very little about British politics. If anything Brexit was surprising for them as well.
City banks are already moving to EU. JP Morgan is moving to Dublin, Frankfurt, Warsaw, Luxemburg. Goldman is moving to Frankfurt and Paris.
EU will start applying pressure to move City jobs to the continent. Brexit will destroy City and London in long-term.
Re: How the City of London invented offshore banking
#7My theory is that The City was the primary force behind Brexit. They are by far the largest and most influential entity and one of the only few that are going to be better off after Brexit. Even more, staying in the EU would actually jeopardize their special tax-heaven status as EU was moving toward more banking regulation. Note: EU rules or laws, once accepted by local parliaments, have the status of international l…
Quite the contrary. They lose passaporting rights with Brexit Not to mention all the EU nationals they employ > special tax-heaven status as EU was moving toward more banking regulation. "Tax haven" status has "nothing" to do with banks, it has to do with taxation rules and agreements. (Some banking rules could have an effect, but in general they don't. Bank secrecy is something that has gone out the window a couple…
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Re: How the City of London invented offshore banking
#8My theory is that The City was the primary force behind Brexit. They are by far the largest and most influential entity and one of the only few that are going to be better off after Brexit. Even more, staying in the EU would actually jeopardize their special tax-heaven status as EU was moving toward more banking regulation. Note: EU rules or laws, once accepted by local parliaments, have the status of international l…
huh? London voted purely in favour of remain. And due to loss of financial passporting etc will have the largest negative fall-out.
Re: How the City of London invented offshore banking
#9My theory is that The City was the primary force behind Brexit. They are by far the largest and most influential entity and one of the only few that are going to be better off after Brexit. Even more, staying in the EU would actually jeopardize their special tax-heaven status as EU was moving toward more banking regulation. Note: EU rules or laws, once accepted by local parliaments, have the status of international l…
After Brexit, The City will lose passporting rights and It would lose a large portion of the EU market. Most of City banks are large multinational corporations that care very little about British politics. If anything Brexit was surprising for them as well. City banks are already moving to EU. JP Morgan is moving to Dublin, Frankfurt, Warsaw, Luxemburg. Goldman is moving to Frankfurt and Paris. EU will start applying…
>>> EU will start applying pressure to move City jobs to the continent. Brexit will destroy City and London in long-term.
Short term is good so far. Rent did not increase last year and jobs have less candidates applying. People literally stop coming overnight since Brexit, there is less competition for everything.
Long term, we will see. Probably nothing good.
Working at one of these big banks, there are 10 000 employees for each building in canary wharf. It's delusional to think that they can be moved.
Re: How the City of London invented offshore banking
#10Welcome to capitalism & competitive forces 101.
Of course the hot money moves to the place offering optimal conditions. Just like if you have a very portable app you'll host it on whatever cloud provider is cheapest & best.