Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Haegin who wrote (1832)	2/2/1998 9:49:00 AM
From: Worswick	Read Replies (1) \| Respond to of 9980

Dear me. Sorry not reply the the question of Indian banking in the Gulf. Ref. Mohan #1760. I believe the reasons why Indians and many Muslims for that matter, prefer to bank in the Gulf vs. Switzerland/Luxeubourg/the Channel Islands/the Carribean is a "cultrual affinity" to the Gulf. The success of BCCI was based in large part on this affinity for Indians and Pakistanis banking with "their own". It was, in fact, a great concept which went wrong in the details. Bank of America was a 25% equity holder in BCCI in the early days when it was starting, if my memory serves. Oddly, one of the greatest pools of money in the world is not so much the "oil money" but the savings of the subcontinent and it's collateral areas. This money includes off-shore savings in "safe havens" and includes "black money" from blocked currency areas, smuggling proceedes, and domestic political winnings (bribes,scams, skims). You have Arab bank this, Arab bank that all over SE Asia: even Nepal has one of the few chartered banks allowed in the coutnry, an Arab Bank something. That is not to say that a crooked businessman in say, Bangalore, goes down to his nearest Arab Bank on Ghandi Road and deposits his money for deposit in Abu Dhabi. It is more complicated than that. In passing I suspect that most of the black money held by Indian's outside the country is in the Gulf. This money is then lent back in India, somehow, getting huge premiums to LIBOR for "foreign exchange" accounts. This is something I suspect and don't know. No one will talk about it, probably because they are making so much money. Asfor legislation in the Gulf about "bank secrecy". Basically, I see local government figures in the Gulf emirates as "franchise" holders of these banks with stated, or non-stated ownership positions. "Why distrub the golden goose, you just want it to keep on laying" I think is the prevailing opinion. I don't think even the CIA can get into some of these banks. A body of self interest goes a lot further here than a body of law relating to "bank secrecy."