Live by the sword, die by the sword as far as doing business in regulation-free tax havens goes, I guess?
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SVB customers who lost their deposits remain on the hook for loans
11–20 of 162 posts
Re: SVB customers who lost their deposits remain on the hook for loans
#12Re: SVB customers who lost their deposits remain on the hook for loans
#13Is it normal for loans to be wiped clean in a bank failure?
These were essentially secured loans offered by the bank against funds that had already been deposited. I'm definitely not a fan of Cayman Island banking nonsense, but it seems rather unfair to seize the deposited funds that secured the loan and still try to enforce repayment.
Re: SVB customers who lost their deposits remain on the hook for loans
#14This article feels like rich people who were trying to get around US law/regulations/taxes now wanting the protections afforded by it.
They deposited money in SVB's Cayman Islands subsidiary (a country that's a well-known tax haven). SVB goes under and the Cayman Islands have no deposit insurance so their deposits are wiped out. Now they want their money back or their debt forgiven. The SVB Cayman deposits didn't pay into the FDIC insurance fund so they shouldn't be given the protection of the FDIC.
The title of the article makes it sound like some poor SVB "customers" are in a bad situation. The truth is that it's going to be venture capital, private equity, and some really wealthy individuals (who were probably trying to dodge taxes). It's hard to feel bad for extremely rich people using a well-known tax haven losing some money. The WSJ is really burying the lead in this story. If you're trying to avoid US laws, regulations, and taxes, you can't come looking for US protections.
EDIT: In a previous article on the topic, the WSJ noted "The financial pain being felt by SVB’s foreign depositors could make investment firms that are incorporated or doing business in offshore financial hubs reconsider where they should put their money and what protections they have" https://www.wsj.com/articles/cayman-islands-regulator-explor...
We don't want to incentivize people to dodge taxes while thinking they'll enjoy all the protections paid for by taxes.
Re: SVB customers who lost their deposits remain on the hook for loans
#15Re: SVB customers who lost their deposits remain on the hook for loans
#16https://archive.is/1d4uw
ERR_SSL_VERSION_OR_CIPHER_MISMATCH
archive.is actively blocks a selection of requests that do not provide them correct and valid location data; that error indicates that, for whatever reason, your request was blocked. Mine was as well, until I switched to curl; I am not using 1.1.1.1 DNS, but that's their most frequent issue.
See also, for example: https://twitter.com/archiveis/status/1018691421182791680?s=2...
Re: SVB customers who lost their deposits remain on the hook for loans
#17Re: SVB customers who lost their deposits remain on the hook for loans
#18Re: SVB customers who lost their deposits remain on the hook for loans
#19This article feels like rich people who were trying to get around US law/regulations/taxes now wanting the protections afforded by it. They deposited money in SVB's Cayman Islands subsidiary (a country that's a well-known tax haven). SVB goes under and the Cayman Islands have no deposit insurance so their deposits are wiped out. Now they want their money back or their debt forgiven. The SVB Cayman deposits didn't pay…
I don’t know if it’s just me that’s heartless, but I think if you’re financially sophisticated enough to bank in other countries or to have more than the insurable limit held in cash (!!! why???) then you ought to have known better or to have known the risks.
I never have more than a small amount held in cash, and even if I had a crazy windfall and made some billions, I wouldn’t keep more than a small amount in cash. For the patient folks, there’s equities… For the risk averse, there’s money markets, treasurys, real estate, etc.
Re: SVB customers who lost their deposits remain on the hook for loans
#20Earlier quoted context omitted.
ERR_SSL_VERSION_OR_CIPHER_MISMATCH
archive.is is poisoning results to users of Cloudflare DNS again. You can look up its IP (via e.g. 8.8.8.8) and hardcode it locally for their domains to fix it.
I was wondering the same thing, my router was set to cloudflair and archive would only work when on mobile... wondered why, thanks for the troubleshooting.