Quote:
Originally Posted by madashelldude
I am still a little confused about these entities. When Sharron Watkins was testifying I remember she said these were offshore because offshore taxhavens allows for these off balance sheet, over the counter type derivatives to be hidden on the asset side of their balance sheet. Ie. it would defeat the purpose of creating these SIVs in the US because a finacial audit would show right away that they are hiding their debt on the asset side. It's only because of offshore bank secrecy that this works... Am I getting this right, or not even close?
Regards,
Madashell Dude
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i guess what I don't understand is how can anyone spin off a company and get away with passing on debt to them without getting caught in some kind of a regulation, unless the spinoff company is not transparent to auditors so there is no way to tell that this shell company is just hiding debt.
BTW, thanks for you explanations and links, it will take me some time to wrap my head around this mess, again thanks for the great videos too.