Barclays PLC (ADR) (BCS) and Deutsche Bank AG (USA) (DB) under Scrutiny over Tax Evasion Claims

Two Global Banks and 13 hedge funds will be the subject of discussions for the coming weeks after a senate subcommittee confirmed it was preparing a report about how these institutions evaded paying taxes worth billions of dollars. Under scrutiny, according to Eamon Javers from CNBC, are Barclays PLC (ADR) (NYSE:BCS) and Deutsche Bank AG (USA) (NYSE:DB).

Barclays PLC (ADR) (NYSE:BCS)

Deutsche Bank AG (USA) (NYSE:DB) and Barclays PLC (ADR) (NYSE:BCS) have already reiterated that they complied with the law and that they did not engage in any unlawful practices in their operations.

“Under scrutiny here are a number of prominent names including Deutsche Bank AG (USA) (NYSE:DB), which has said it has fully complied with all the applicable laws. Barclays PLC (ADR) (NYSE:BCS) also says it’s fully compiled with the law” said Eamon Javers.

The senate investigation subcommittee claims that the banks and hedge funds used basket options that created a ‘fiction’ showing that the banks owned account assets that were, on the other hand, operated by the hedge funds. This way, they were able to avoid paying billions of dollars in taxes. The hedge funds are reported to have controlled the accounts.

The subcommittee claims that the hedge funds traded in the accounts with a view of avoiding long-term capital gain or guaranteeing long-term capital gain tax rates as well as avoiding leverage limits.

“The hedge funds controlled those assets, the committee says, and traded in accounts all of it was done to avoid long-term capital gains or to guarantee long-term capital gains tax rates for some of those profits and the funds also avoided leverage limits,” said Mr. Javers.

Some of the hedge funds under scrutiny include George Weiss Associates and Renaissance Technologies, managed by Jim Simons which have also reiterated that they fully cooperated with the law in all their operations.  The U.S senate subcommittee, according to CNBC’s Melisa Lee is just trying to say that the financial institutions under question only did things they did not like, and did not break the law.


Disclosure: none

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!