GLG News Analyses of the following article:

Swiss Banks Lose European Clients

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Published at: online.wsj.com

Swiss offshore banking margins more vulnerable than volumes

November 10, 2009

Analysis by: GLG Expert Contributor

The global clampdown on offshore banking is having a tangible impact, particularly in Europe.  But probably not to the extent that some have argued: offshore banking is not dead.  Yes, weak and volatile economies fuel governments' need for every last cent in tax; they also represent one of the fundamental demand drivers of offshore banking.  At least initially, the biggest impact is likely to felt through margin -- rather than volume -- reductions.  

Singapore and the Swiss

November 6, 2009

Analysis by: GLG Expert Contributor

The article is correct. Money is flowing to Singapore.  Not only money from Switzerland, but also money from China, Russia, and Indonesia.  People do not trust their governments, and they are putting their trust in the benevolent dictator in Singapore.  Singapore's government can stand up to the pressure put on it by other governments.  It is a cross roads nation, and they have done a very good job positioning themselves to be a center of commerce in Asia.  I think the other thing the article proves is that people respond to incentives.  If a government gets too overbearing, they will hide money.  Look for the underground economy in the US to grow with the heavy tax hand of the Obama administration.