Treasure Islands - Nicholas Shaxson [154]
35.Bernard S. Black, “Shareholder Activism and Corporate Governance in the United States,” New Palgrave Dictionary of Economics and the Law 3 (1998): 459–465, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=45100.
36.Senate Bill No. 58, An Act to Amend Title 10 of the Delaware Code Relating to the Court of Chancery, State of Delaware Division of Corporations, http://corp.delaware.gov/sb58.shtml.
37.Matthew Goldstein, “Special Report: For Some People, CDOs Aren’t a Four-Letter Word,” Reuters, May 17, 2010.
38.Madhav Mehra, “Are We Making a Mockery of Independent Directors?” World Council for Corporate Governance, http://www.wcfcg.net/ht130304.htm, accessed August 15, 2010. Dr. Madhav Mehra is president of the council.
39.There are salient differences with the Cayman Islands. For example, most Cayman companies (the “exempt” companies) are by Cayman law not permitted to do business in Cayman. Such is not the case in Delaware. Also: typically, in Delaware, federal but no state taxes are paid; in Cayman, no taxes are paid.
40.Twelve thousand was the figure cited; the true figure is closer to eighteen thousand.
41.List of Delaware Registered Agents, Delaware Department of State division of corporations, corp.delaware.gov, http://corp.delaware.gov/agents/agts.shtml, accessed August 15, 2010.
42.The 2008 and 2007 reports are available at the state of Delaware’s official website, http://sos.delaware.gov/2008AnnualReport.pdf.
43.Transcript of interview with Mrs. Ngozi Okonjo-Iweala, Nigerian finance minister, interview by Paul Vallely, The Independent, May 16, 2006, http://www.independent.co.uk/news/world/africa/transcript-of-interview-with-mrs-ngozi-okonjoiweala-nigerian-finance-minister–478337.html.
44.Transparency International has started to embrace this issue and called in November 2008 for a “second wave” of corruption campaigning to tackle these and other matters. As I write this, it is in the process of reevaluating its stance.
CHAPTER 7 THE DRAIN
1.“Interview: John Moscow,” Money Laundering Bulletin, April 1997.
2.A range of estimates for the size of the narcotics trade exists. This one comes from “The Global Narcotics Industry,” Center for Strategic and International Studies, Washington, D.C., http://csis.org/programs/transnational-threats-project/past-task-forces/-global-narcotics-industry.
3.Based on the current price of $75 per barrel.
4.This section on BCCI is drawn mostly from Peter Truell and Larry Gurwin, False Profits: The Inside Story of BCCI, the World’s Most Corrupt Financial Empire (New York: Houghton Mifflin, 1992); from Jeffrey Robinson, The Sink: How Banks, Lawyers and Accountants Finance Terrorism and Crime—and Why Governments Can’t Stop Them (London: Robinson Publishing, 2004); as well as various newspaper and academic reports, plus author’s interviews with Robert Morgenthau and Jack Blum in 2008 and 2009.
5.For most of its life, Ernst & Whinney (now Ernst & Young) audited BCCI Luxembourg, while Price Waterhouse (now PWC) audited BCCI Cayman.
6.See Peter Truell and Larry Gurwin, False Profits: The Inside Story of BCCI, the World’s Most Corrupt Financial Empire (New York: Houghton Mifflin, 1992), p. 87.
7.Ibid., p. 189.
8.Ibid., pp. 193–97 and pp. 290–91; and Robinson, The Sink, pp. 79–81. Some of the capital was real money, but much of it was not.
9.Author’s interview with Morgenthau, May 4, 2009. Morgenthau didn’t name Scott, but he was the attorney general at the time.
10.Ibid.
11.Robinson, The Sink, pp. 318 and 357.
12.Ibid., p. 84.
13.In 2009, Britain’s Information Commissioners refused a Freedom of Information request by Prem Sikka finally to publish PriceWaterhouse’s 1991 “Sandstorm” report on BCCI, in an extraordinary and long-winded reply arguing