Goldman Sachs pulls out of IFSC Why?

Going Forward

Apparently it's down to our strict banking regulations, and others have also left.

http://www.irishtimes.com/news/heavy-regulation-affects-ifsc-1.1383149

Why do these banks prefer to operate in less well regulated markets, it looks very suspicious.

Surely their own interests and reputations are better protected in a more regulated territory?

Technoprisoner

because the gravy train has just pulled out

Fitz123

Surprised so much of the talk is about GS, I don't really remember much talk about BAC when they moved a derivative business from Dublin to London.

http://www.cnbc.com/id/100411179

Rightwing

Going Forward wrote: »

Apparently it's down to our strict banking regulations, and others have also left.

http://www.irishtimes.com/news/heavy-regulation-affects-ifsc-1.1383149

Why do these banks prefer to operate in less well regulated markets, it looks very suspicious.

Surely their own interests and reputations are better protected in a more regulated territory?

And I wonder how many jobs will be lost by this? 1...2? 0 ?

Cody Pomeray

Fitz123 wrote: »

Surprised so much of the talk is about GS, I don't really remember much talk about BAC when they moved a derivative business from Dublin to London.

http://www.cnbc.com/id/100411179

Bingo!

I think this is the kind of thing that we were looking for; it's certainly more useful than the Commerzbank and GS Story, and might suggest regulatory involvement in the decision to quite Dublin. This quote in particular:

But bankers said Irish officials had made it clear they were uncomfortable with such a large book of business being Dublin-based, theoretically posing a risk to Irish taxpayers.

So maybe Somers was right.

The article mentions a falling british corporation rate as well, but lets be clear that rate is falling to 23%, there's still a substantial tax arbitrage in Ireland, but perhaps the regulatory benefits are indeed diminishing.

hfallada

Some of these companies are "located in the IFSC" and managing billions of euro worth of assets but your local spar probably has twice the employees.

http://www.top1000.ie/industries/financial-services-banking

The Rooster

32,000 people employed be companies in the IFSC.
They pay €1bn in corporate tax and €1bn in payroll taxes.

We had too little regulation, now we've too much. Its making it too hard to do business. We need to find a middle ground.