Mr. Nick Shaxson\’s playing with numbers

It is the world\’s fifth largest financial centre, hosting 80,000 registered companies, more than three-quarters of the world\’s hedge funds, and $1.9tn (£1.2tn) on deposit – four times as much as in New York City banks.

I wonder what the definition of \”New York City bank\” is there?

Clearly it\’s not banks that have offices in New York City. I also seriously doubt that it\’s banks with HQs in NYC.

Given that he\’s known to comment around here I wonder if he\’ll tell us?

1 thought on “Mr. Nick Shaxson\’s playing with numbers”

  1. The explanation for all that money in the Cayman Islands is simple – from p 17 of the Foot Report
    2.10 BIS reporting banks’ claims on the Cayman Islands at the end of 2008 amounted to $1.5
    trillion, about 42 per cent of the total. This was higher than any other offshore centre and
    inflated by the long-standing consequence of US Federal Reserve regulations. Since 1933, the
    US Federal Reserve has not allowed the payment within the US of interest on overnight
    (demand) deposits. One result has been that US banks and other residents have routed such
    deposits through the Cayman Islands, where interest can be paid. It is not possible to estimate
    precisely the total size of this effect but it may account for more than one-third of the banking
    funds being placed through the Cayman Islands at any point in time.
    http://webarchive.nationalarchives.gov.uk/+/http://www.hm-treasury.gov.uk/d/foot_review_main.pdf

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