Reply #60: Manhattan DA Fears Off-Shore Hedge Funds Puts Investments at Risk

[Robbien]

Manhattan District Attorney Robert Morgenthau says that he believes off-shore banking by hedge funds leaves investors and the public increasingly vulnerable.

Morgenthau says there is $1.9 trillion on deposit in the Cayman Islands beyond US legal jurisdiction compared to just $400 billion on deposit in New York. A Cayman Islands promotional web site contends it is home to 8,000 hedge funds.

http://www.wnyc.org/news/articles/95641

So for every hedge dollar they have in the US, they have five more in the Cayman Islands. Not only are they raiding all value out of US investments, they are hiding their income in low/no taxable offshore accounts.