You read the comments of 2007 Index of Economic Freedom
on SG and HK and find that Heritage Foundation
and WSJ seem push for full openness
in banking without much prudences.
Thats why SG is marked as 50 and HK as 90 in Financial Freedom.
The western style of Financial Freedom leads to depositors tears.
BCCI,
Bank of Credit & Commerce International (BCCI ), is the test book example.
Hong Kong's economy is
89.3 percent free, according to Heritage Foundation and WSJ 2007 assessment
Singapore's economy is
85.7 percent free, according to Heritage Foundation and WSJ 2007 assessment,
The 2007 Index of Economic Freedom measures and ranks 161 countries across 10 specific freedoms, things like tax rates and property rights. View scores and rankings for any country, along with detailed data and background analysis.Not for ranking ,but for BCCI lessonsI am not interested in SG ranking in the world set by those people
stay in ivory tower and use their own yard stick to measure the world
without too much legs works and reviewing history.
I PREFER SG NEVER BE THE FREEEST ECONOMY.
So dunt think i am too calcultaive on the marks and
want SG replace HK as the freeest econmoy.
Though, I am suprised that in Financial Freedom,HK and SG
were assessed 90 and 50.I dunt want agrue on the marks.
But i want to review and remind people of SG the
Bank of Credit & Commerce International (BCCI )incident to show
that SG should not be so open to foreign banks.
The assessors of this index seems too young to know
BCCI which operated in 73 countries.
When it was closed down in July 1991 ,depositors
and creditors had claimed for US$11 billion.
Singapore escaped unscathed because
we refused to compromise standards
---Memoirs of LEE KUAN YEW,From Third world to first world.page93,94.
2.
HK is praised for her openess but tears of 40,000 HK depositors
never mentioned 2.1
Openess is praised Hong Kong is a global financial center with an innovative and efficient financial system. The regulatory and legal environment is non-intrusive, focused on prudent minimum standards and transparency. Banks are overseen by the independent Hong Kong Monetary Authority. Credit is allocated on market terms to all investors. There are no restrictions on foreign banks, which are treated the same as domestic institutions.
--Heritage Foundation and WSJ 2007 assessment
2.2 But Openess come with a price---US$512 million and 40,000 depositors
in HK suffer countless sleepless nights.
Rescue of BCCI Hong Kong Abandoned
By Laurence Zuckerman, International Herald Tribune
Thursday, February 20, 1992
.....The announcement Wednesday revived last summer's fury at Hong Kong officials, who have been blamed for misleading depositors when questions about the bank first surfaced in July.
.
At that time, David Carse, the Hong Kong banking commissioner, assured depositors that Bank of Credit & Commerce Hong Kong Ltd., which is incorporated and regulated in the colony, was "sound and viable" even though European officials had already shut down the parent company.
.
Two days later, however, Mr. Carse changed his mind and suspended the bank's operations. That turnaround sparked a series of demonstrations and hunger strikes by depositors and led to a series of runs on local banks.
.....
2.3
Why BCCI can cheat in so many countries? 2. BCCI SYSTEMATICALLY BRIBED WORLD LEADERS AND POLITICAL FIGURES THROUGHOUT THE WORLD.
BCCI's systematically relied on relationships with, and as necessary, payments to, prominent political figures in most of the 73 countries in which BCCI operated. BCCI records and testimony from former BCCI officials together document BCCI's systematic securing of Central Bank deposits of Third World countries; its provision of favors to political figures; and its reliance on those figures to provide BCCI itself with favors in times of need.
Why Singapore escaped unscathed from BCCI3.Memoirs of LEE KUAN YEW,From Third world to first world.page93,94.
MM LEE said that BCCI applied for an off shore banking license in SG in 1973
and was rejected.Reasons:Too new,just incorporated in 1972
and low in capitalisation.
In 1982,it applied again through Van Oenen,who had helped SG establish Asian Dollars market.Rejected.
BCCI applied again through Harold Wilson.But LKY saw from his
signature style and sensed that Wilson was writing pro forma,to
oblige a friend.Rejected.
4.Sometimes, too conservative become known as prudence,
but only known years later and after some unpleasant things happen.
5.It was,and still is, very hard to bribe SG officials.
Thats why we need high pay to governmant high flyers!!
