The US financial rescue plan will benefit Bermuda’s insurance industry, according to John Kephart, president and CEO of Capital G Bank in Bermuda, and the removal of sub-prime mortgage securities was positive for the Island’s re/insurance market.
He went on to say that anything that continues to stabilize the reinsurance market by providing an opportunity for these securities that continue to plague these organizations to be removed from the equation is a positive for Bermuda and that the removal of sub-prime mortgage securities was positive for the Island’s re/insurance market.
However, Mr. Kephart raised some fears about US presidential candidate and Democrat Senator Barack Obama’s threats to shut down tax havens, although Sen. Obama has not made direct reference to Bermuda, the Island was on a list of jurisdictions taken from Internal Revenue Service court filings identified as “probable locations for US tax evasion” under the “Stop Tax Haven Abuse Act” introduced by Sen. Obama, Democratic Sen. Carl Levin and Republican Sen. Norman Coleman last year.
Bermuda is one of a handful of jurisdictions in the world approved by every international initiative in the past 10 years. A high degree of public/private partnership underpins the country’s economic development. Private money management firms from all over the world have made Bermuda one of the best-known international financial centers in the world. Today, the island is home to more than 13,000 international companies, 1,500 investment funds (with assets of $60 billion) and an electronic stock exchange with market capitalization greater than $60 billion. Three quarters of the Fortune 100 companies have operations in Bermuda
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