Offshore private banking model is dead in U.S. according to experts

September 1, 2009 by · Leave a Comment
Filed under: Global News 

It won’t be die but private offshore banking will continue to be under scrutiny as tax revenues are falling and our budget expense rise.  The United States needs all the tax receipts it can get with all these massively expensive social programs coming online.  We can not have the wealthiest portion of our population not pay their fair share of the taxes by making income in the U.S. but then sending the proceeds overseas so they are essentially not taxed.

Regardless if you agree with the tax structure, once you get everyone paying in the system, if they still strongly disagree with the level of taxation, the taxpayers have a strong incentive to lobby their representatives for tax reforms.  Right now, our wealthy class doesn’t seem to care either way because they have found a loophole to avoid having their wealth taxed like the rest of us.  Right incentives are key to having a functioning democracy.

News:

Reuters, Zurich – A U.S. tax probe against Swiss bank UBS has killed traditional offshore banking and wealth managers will have to improve their offers to survive, bankers and industry experts said on Tuesday.

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Private bankers see crisis boosting transparency

October 15, 2008 by · Leave a Comment
Filed under: Industry News 

The global financial crisis will boost calls for tougher regulation and greater transparency on banking fees, which could in turn hit some wealth managers’ profit margins, bankers to the world’s rich say.

“Clients have lost trust and something needs to be done to improve the quality of advice,” Sebastian Dovey, managing partner at wealth management consultancy Scorpio Partnership, told the Reuters Wealth Management Summit.

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