There is no escape from the impact of the global financial crisis and, like the rest of the world, Cayman has started to feel its full force during the past year.
The US$50b fraud by Bernard Madoff’s investment advisory and broker-dealer firms had an equally outsized list of red flags. Several ways in which Madoff carried out his operations were not only highly unusual but also gave him more discretion over his operations and subjected his activities to less scrutiny than a typical investment adviser or broker-dealer. Notably
This article considers recent trends in the hedge fund industry, as seen from the Cayman Islands legal perspective, following the upheaval of the recent global economic downturn.
Reflecting on the recent global financial crisis one can’t help but wonder what lessons have been learned from the experiences of many of the world’s hedge fund participants.
Due in large part to the financial crisis that has plagued the global banking system, letters of credit (LOCs) continue to be more expensive and harder to find. For those that are wondering “When are LOC fees going to go down?”