Published On: Mon, Feb 18th, 2013

US treasury secretary nominee quizzed on Cayman Islands investment

Jack LewGEORGE TOWN, Cayman Islands – At a recent US Senate Finance Committee confirmation hearing, Jack Lew, President Obama's nominee for treasury secretary, was asked about his investment in a Cayman Islands investment fund domiciled in Ugland House which, during his 2008 presidential campaign, Obama had referred to as "either the biggest building in the world or the biggest tax scam in the world."

“At this juncture, it is perhaps worth asking why people are still surprised that Americans including both Republicans and Democrats have money invested in Cayman investment funds, when it is certainly the case that all Americans who have a pension fund will likely have their money indirectly invested in a Cayman private equity or hedge fund,” said Cayman Finance in a statement in response to the senate focus on Lew’s investment.

Cayman Finance is a private sector organisation established to promote the interests of the Cayman Islands' financial services industry.

There is nothing at all wrong with such an investment, Cayman Finance said.

“As the 2008 Government Accountability Office's Report attests, Cayman is the domicile of choice and a centre of excellence for some of the world's leading international investment funds,” the statement continued.

According to Cayman Finance, Cayman Islands investment funds are an important part of helping to solve pension funds' need for investment diversification and the global allocation of capital. Some of this capital is, for example, invested in important infrastructure projects in emerging market countries. As a consequence Cayman helps US fund managers manage money for foreign investors, thus supporting jobs and service providers based in the US.

“It is high time that Cayman's important role in the global economy and capital markets is better understood by policy makers,” Cayman Finance concluded.

By Caribbean News Now contributor

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