2008-10-31
2008-10-09
Damn Stupid Financial Institutions
I won't name the bank, stock broking house, custodial vehicle, nor equities involved.
All I can say is this: when you buy foreign or off-shore counters, do YOU ask you banker for details of their custody vehicle ? Is it important where they hold the offshore scripts ? YOU BET IT IS !!
Case in point: I invested in non-China non-Hong Kong equities. I only find out that the custodial service uses a vehicle in Hong Kong when I receive a letter from my stockbrokers informing me that China is imposing a 10 per cent withholding tax on corporate entities parked there - guess what, the custodial service is a corporate entity.
What the fuck ?! My non-China non-Hong Kong holdings are subject to 10 per cent withholding tax simply because the idiot brokerage uses a custodial service based in Hong Kong ?!
What the shit !!!
This is the worse time ever to liquidate my offshore holdings in that service.
Just let me say this - thank goodness I did not go along with the Lehman mini-bonds which the main bank was offering. Those are now in default, because Lehman has gone bust.
Idiots. All greedy, brainless idiots.
If you see an investment banker or any banker for that matter, Treat With Extreme Prejudice.
All I can say is this: when you buy foreign or off-shore counters, do YOU ask you banker for details of their custody vehicle ? Is it important where they hold the offshore scripts ? YOU BET IT IS !!
Case in point: I invested in non-China non-Hong Kong equities. I only find out that the custodial service uses a vehicle in Hong Kong when I receive a letter from my stockbrokers informing me that China is imposing a 10 per cent withholding tax on corporate entities parked there - guess what, the custodial service is a corporate entity.
What the fuck ?! My non-China non-Hong Kong holdings are subject to 10 per cent withholding tax simply because the idiot brokerage uses a custodial service based in Hong Kong ?!
What the shit !!!
This is the worse time ever to liquidate my offshore holdings in that service.
Just let me say this - thank goodness I did not go along with the Lehman mini-bonds which the main bank was offering. Those are now in default, because Lehman has gone bust.
Idiots. All greedy, brainless idiots.
If you see an investment banker or any banker for that matter, Treat With Extreme Prejudice.
2008-10-03
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