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Posts Tagged ‘Panama Papers

“Results aside, the ability to have complete faith in another human being is one of the finest qualities a person can possess”*…

 

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Downtown San Francisco ablaze after the 1906 earthquake, from the slope of Nob Hill

 

Amadeo Peter Giannini was born in San Jose, California in 1870. The son of Italian immigrants had an outsized personality and unlimited faith in the American dream.

Giannini began by selling fruits and vegetables from a horse-drawn wagon. But he was made for bigger things. At age 34, he launched a small bank in the Italian neighborhood of North Beach, San Francisco. At the time, big banks lent only to large businesses, handled deposits of the wealthy, and frowned on aggressive advertising.

The novice financier knocked on doors and buttonholed people on the street. He persuaded “unbanked” immigrants that gold and silver coins were safer in vaults than under mattresses. Moreover, the money would earn interest at his “Bank of Italy.”

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On the morning of April 18, 1906, a massive earthquake hit San Francisco. The ensuing fires burned down the large banks. Their superheated metal vaults could not be opened for weeks—lest the cash and paper records catch fire when oxygen rushed in.

As flames threatened his one-room bank, Giannini spirited $80,000 in coins out of town. He hid the precious metal under crates of oranges and steered his wagons past gangs of thugs and looters in the streets.

As other banks struggled to recover, Giannini made headlines by setting up a makeshift bank on a North Beach wharf. He extended loans to beleaguered residents “on a handshake” and helped revive the city.

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The innovative bank welcomed small borrowers who might otherwise have to use high-cost loan sharks. Most banks at the time regarded people with modest incomes as credit risks not worth the paperwork. But experience had taught Giannini otherwise: that working class people were no less likely to pay their debts than the wealthy.

Seeking more customers, the former produce salesman returned to his old haunts—the fertile valleys of California. He “walked in rows beside farmers engaged in plowing” to explain how bank branches make credit cheaper and more reliable. Town by town, he built the first statewide branching system in the nation.

On November 1, 1930, the Bank of Italy in San Francisco changed its name to Bank of America. The bank today has the same national bank charter number as Giannini’s old bank— #13044.

When A.P. Giannini died in 1949, the former single-teller office in North Beach claimed more than 500 branches and $6 billion in assets. It was then the largest bank in the world…

How a humane response to a community tragedy launched what became the biggest bank in the world: “Bank of America: The Humble Beginnings of a Large Bank.”

* Haruki Murakami, The Wind-Up Bird Chronicle

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As we learn from our elders, we might recall that it was on this date in 2006 that the first news stories based on the Panama Papers were published.  A cache of 11.5 million leaked documents that detailed financial and attorney–client information for more than 214,488 offshore entities, all from Panamanian law firm and corporate service provider Mossack Fonseca, the Panama Papers chronicled tax evasion, money laundering and fraud involving 12 current or former world leaders; 128 other public officials and politicians; and hundreds of celebrities, businessmen, and other wealthy individuals from over 200 countries.

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An online chat between Süddeutsche Zeitung reporter Bastian Obermayer and anonymous source John Doe

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“We don’t pay taxes. Only the little people pay taxes.*…

 

In a seminar room in Oxford, one of the reporters who worked on the Panama Papers is describing the main conclusion he drew from his months of delving into millions of leaked documents about tax evasion. “Basically, we’re the dupes in this story,” he says. “Previously, we thought that the offshore world was a shadowy, but minor, part of our economic system. What we learned from the Panama Papers is that it is the economic system.”

Luke Harding, a former Moscow correspondent for The Guardian, was in Oxford to talk about his work as one of four hundred–odd journalists around the world who had access to the 2.6 terabytes of information about tax havens—the so-called Panama Papers—that were revealed to the world in simultaneous publication in eighty countries this spring. “The economic system is, basically, that the rich and the powerful exited long ago from the messy business of paying tax,” Harding told an audience of academics and research students. “They don’t pay tax anymore, and they haven’t paid tax for quite a long time. We pay tax, but they don’t pay tax. The burden of taxation has moved inexorably away from multinational companies and rich people to ordinary people.”…

More from Alan Rusbridger (former editor of The Guardian, now Principal of Lady Margaret Hall, Oxford, and Chair of the Reuters Institute for the Study of Journalism) in The New York Review of Books: “Panama: The Hidden Trillions” (the first of two parts).

* Leona Helmsley, New York property heiress

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As we fulminate on fairness, we might recall that it was on this date in 1792 that a group of 12 Freemasons laid the cornerstone of The White House.  Eight years later, John and Abigail Adams moved in.

The White House was designed by James Hoban, an Irish immigrant architect living in Charleston, South Carolina, who won a competition for the commission (and a $500 prize) with a design modeled after Leinster House in Dublin, Ireland.  He beat out a future resident, Thomas Jefferson, whose Monticello/UVa-like design was among the many losers.

It’s not known whether there was anything contained within the cornerstone.  In fact, though the building stills stands (albeit rebuilt and expanded after being burned down during the War of 1812), the whereabouts the stone itself are a bit of a mystery.

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Written by LW

October 13, 2016 at 1:01 am

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