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 lessons
I 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 theBank 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
2.1Openess 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.
.....
2.3Why 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 BCCI
3.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!!
