The bankruptcy of U.S. banks and zeroing out are indeed deposits for Asian depositors.
The Cayman Islands, a haven where the rich transferred their assets and avoided taxes, suffered.
From the world's tax havens to the confiscation of assets to zero, overnight, those rich people never expected that their assets in the Cayman Islands were also confiscated by the United States.
The Cayman Islands is located in the Caribbean Sea of North America, and the entire Cayman Islands consists of three islands: Grand Cayman, Little Cayman, Cayman and Cayman and Brac. Legend has it that the Cayman Islands were discovered by Columbus, became a treasure trove for pirates of the Caribbean, and are now the world's premier tax haven.
The Cayman Islands is a well-known offshore tax haven with free access to funds, attracting institutions and individuals from all over the world to open accounts. However, in March this year, Silicon Valley Bank was taken over by the FDIC (Federal Guaranteed Corporation) due to financial crisis and acquired by First Citizen Bank of the United States. But in this deal, the Cayman Islands branch of Silicon Valley Bank was excluded and placed under the FDIC takeover. The FDIC informed depositors at the branch that their deposits would not be covered by deposit insurance and that they would be treated as general unsecured creditors.
Under the U.S. Federal Deposit Insurance Act, only U.S. domestic deposits can be protected. This means that the FDIC has imposed a double standard on depositors at the Cayman Islands branch of Silicon Valley Bank. For U.S. savers, they can enjoy the protection of deposit insurance, while for overseas savers, they are treated as powerless creditors, and their assets are confiscated to compensate domestic depositors.
According to statistics, forty-nine of the world's top 50 largest banks have branches in the Cayman Islands, plus financial institutions such as trusts and insurance companies, adding up to more than a thousand. There are more than 50,000 large companies registered on the island, and the total size of hedge funds registered in the Cayman Islands exceeds $2.3 trillion.
For example, Apple, Microsoft, Facebook, Google and other international giants are registered here. The registration place of Alibaba, Tencent, Baidu, Netease, Xiaomi, JD.com, Lenovo and other giant companies in China is also the same, especially in Asian countries, in order to facilitate the flow of funds between Asia and the Americas, Asian countries enterprises or personal assets are willing to exist here.
The assets of the Cayman branch of Silicon Valley Bank confiscated by Lao Mei this time are about 13.9 billion US dollars, and most of these funds are corporate deposits or personal deposits in Asian countries. Although Lao Mei did not directly confiscate the entire assets of the Selling Islands this time, this opening has now been opened. Will the assets of other banks opening branches be confiscated in the future? With the habits of old beauty, it is entirely possible.
So someone is really going to panic, do you know who it is?
