BarroMetrics Views: News for FACTA
Two separate tid-bits came out yesterday. One is the response that many financials institutions are adopting to protect themselves against FACTA.
“Redmayne-Bentley closes door on US clients ahead of FATCA deadline” . The British stockbroking firm decided the costs of doing business with US citizens outweighed the benefits. More and more I am hearing of this solution being adopted. Will this type of move adversely affect the US economy? Perhaps? If more and more US business is shunned, FACTA may well have the effect of affecting the sale of the US products that are promoted by US citizens living ex-US?
One clear and visible effect is the surrender of by Americans of their US citizenship; US overseas residents are now finding it difficult to establish retirement accounts, saving accounts, mortgage loans and generally transact with financial institutions. So, they are opting out of their system.
The second tid-bit was the news that “Jim Bopp takes on McCain-backed tax act“.
For those unfamiliar with Bopp’s name, he is the lawyer who “persuaded the Supreme Court to strike down crucial elements in the McCain-Feingold campaign finance law. Bopp is arguing that FACTA infringes on the rights that are protected by the US constitution and “scares banks from doing business with Americans living overseas.
I’ll be watching, with a great deal of interest, the progress of this challenge.