OFCs 'not to blame' for global financial woes, says ex-regulator
- "Doomsday" would be the "cataclysmic decline of these centers" caused by "major economic powers implementing domestic policies and programs that eliminate the need to use OFCs", "the reintroduction of exchange/capital controls by all major economic powers", or, less likely, "the effective implementation of international agreements between the major economic powers not to compete on regulatory and tax matters".
- "Nirvana" would be "the continued and unchecked growth of OFCs driven by increased globalization of financial markets, continued regulatory and tax arbitrage and competition between sovereign states and the welcoming of the useful role played by OFCs".
- "The Curate's Egg", which Ridley said was "the most likely" outcome, would be "a mix" of the Doomsday and Nirvana scenarios, whereby "some OFCs would flourish and others die" against a backdrop of "continued attempts by major economic powers and blocks to reduce the advantages they can offer".
Published January 17, 2012
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