Structured financial products and financial engineering : a tax avoidance investigation / Lenora Osborne, editor.

Format:

Book

Contributor:

Osborne, Lenora, editor.

Series:

Business issues, competition and entrepreneurship series.

Business issues, Competition and Entrepreneurship

Language:

English

Subjects (All):

Derivative securities--Taxation.

Derivative securities.

Physical Description:

1 online resource (175 p.)

Place of Publication:

New York : Nova Publishers, 2015.

Language Note:

English

Summary:

For the last decade, the U.S. Senate Permanent Subcommittee on Investigations has presented case histories showing how financial institutions, law firms, accountants, and others have designed and implemented complex financial structures to take advantage of and, at times, abuse or violate U.S. tax statutes, securities regulations, and accounting rules. This book offers yet another detailed case study of how two financial institutions - Deutsche Bank AG and Barclays Bank PLC - developed structured financial products called MAPS and COLT, two types of basket options, and sold them to one or more

Contents:

""STRUCTURED FINANCIAL PRODUCTS AND FINANCIAL ENGINEERING: A TAX AVOIDANCE INVESTIGATION""; ""STRUCTURED FINANCIAL PRODUCTS AND FINANCIAL ENGINEERING: A TAX AVOIDANCE INVESTIGATION""; ""Library of Congress Cataloging-in-Publication Data""; ""Contents""; ""Preface""; ""Chapter 1: Abuse of Structured Financial Products: Misusing Basket Options to Avoid Taxes and Leverage Limits*""; ""I. Executive Summary""; ""A. Subcommittee Investigation""; ""B. Investigation Overview""; ""C. Findings of Fact""; ""D. Recommendations""; ""II. Background""; ""A. General Description of Derivatives""

""(1) Taxes, Leverage Limits, and Transparency Problems""""(2) Options""; ""(3) Basket Options on a Basket of Securities""; ""B. Overview of Tax Principles""; ""(1) Short and Long-Term Capital Gains Tax Treatment""; ""(2) Taxation of Stock Dividends""; ""(3) Section 1260""; ""(4) Substance over Form Doctrine""; ""(5) 2010 IRS Basket Options Memorandum""; ""III. Basket Option Case Studies""; ""A. Basket Option Participants""; ""(1) Deutsche Bank""; ""(2) Barclays""; ""(3) Renaissance Technologies Corporation LLC""; ""(4) George Weiss Associates""; ""B. Evolution of Basket Options""

""C. Development of MAPS and COLT""""(1) Barclays� COLT Structure""; ""(2) Deutsche Bank MAPS""; ""(a) Original MAPs""; ""(b) Revised MAPS""; ""(c) Current MAPS""; ""D. Analysis of Basket Option Case Studies""; ""(1) RenTec Utilization of the Basket Option Structure""; ""(a) Disguising Trading Activity as an Option""; ""(i) Controlling Trading Activity""; ""(ii) Informing Auditor of RenTec Control""; ""(iii) Functioning as Prime Brokerage Trading Accounts""; ""(b) Changing the Asset Pool""; ""(i) Constantly Changing Algorithm""; ""(ii) Constantly Changing Asset Mix""

""(c) Ignoring Option Formalities""""(i) Option Accounts as One Big Investment Pool""; ""(ii) Journaling Between Deutsche Bank Option Subaccounts""; ""(d) Withdrawing Cash at Regular Intervals""; ""(2) George Weiss Utilization of Basket Option Structure""; ""(a) Crossing Trades between Accounts""; ""(b) Using MAPS Assets as Collateral for Other Accounts""; ""(3) Claiming a Business Purpose""; ""(a) Facilitating Tax Avoidance""; ""(b) Circumventing Leverage Requirements""; ""(4) Restructuring the Basket Option Products""; ""(a) Barclays� Restructuring""

""(b) Deutsche Bank�s Restructuring""""IV. Systemic Concerns""; ""End Notes""; ""Chapter 2: Statement of Senator Carl Levin, Chairman, Senate Permanent Subcommittee on Investigations. Hearing on ''Abuse of Structured Financial Products: Misusing Basket Options to Avoid Taxes and Leverage Limits''(""; ""Chapter 3: Testimony of Steven M. Rosenthal, Senior Fellow, Urban-Brookings Tax Policy Center. Hearing on ''Abuse of Structured Financial Products: Misusing Basket Options to Avoid Taxes and Leverage Limits''(""; ""I. The Stakes: Short-term or Long-term""; ""Capital Gains""

""II. The Investment Transactions""

Notes:

Includes index.

Description based on online resource; title from PDF title page (ebrary, viewed February 9, 2015).

ISBN:

1-63463-803-4

OCLC:

900633067