I’ve written a few times about Delaware’s shameful status as a safe harbor for corporate misconduct. Delawareans seem willing to go along with this–I suppose because they think they are getting lower taxes out of it. I Most people don’t seem to consider that this is not only helping schemers rip off others elsewhere, but it also tends to deny Delawareans access to justice in our own courts.
Is resentment getting to the point where something may get done about it at the federal level? Hard to say. But it IS amusing to see representatives of the Cayman Islands complaining about Delaware, as in the NYT story below.
“You can have companies in Delaware that have no U.S. bank accounts, no requirements for documentation and no one knows who owns them,” says Anthony B. Travers, chairman of the Cayman Islands Stock Exchange and former chairman of that country’s Financial Services Association. “There should be a level playing field and Delaware should have to comply with the same standards as the Caymans.” (more…)