EDITORIAL
An Unholy Financial Trinity
Thursday, June 3, 2004
Click here for full article
Reader comments:
- Your point about the need to improve the reputation of the Cayman
Islands is well made, but by no means all the brickbats the islands receive
are deserved. For instance, you say in your editorial that "Enron cheated
investors by using 692 subsidiaries in the Cayman Islands to pretend that
money it borrowed was money it earned." In fact, the "offshore" subsidiaries
used by Enron in the fraud were domiciled in the US state of Delaware -
Simon Gray
- Editor’s note: The US Senate report on Enron identifies a number of
off-balance sheet entities associated with or controlled by certain senior
executives of the company. One of these, LJM Cayman, was a Cayman Islands
partnership partially owned by Enron CFO Andrew S. Fastow. This fact alone
should have raised a red flag at whichever local firm set up the partnership
in question, let alone the actual transaction engineered by Fastow whereby
Enron moved the risk from its investment in a start-up Internet service
provider to the partnership.
- Something has to be done about this problem of see no evil and do no
evil. People are not going to sit by and let their pension money be stolen
and not do anything to the perpetrators. Cayman Net News Editorial is right
on time. The financial services will go other places sooner then later if
one’s act is not cleaned up immediately - Albert S. Jackson
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