[notyograndma]

Cayman isn't really a tax dodge. I've structured a few hedge funds in the Cayman Islands, and FATCA/CRS regime to which it strictly adheres prevents it from being one. Companies set up foreign financial entities in Cayman Islands because it's a tightly regulated financial center with well known laws, and because foreign investors want it because it's perceived (particularly by Chinese investors) as a safe haven. If those investors invested directly through US entities, they still would not be taxed. What's also likelier here is that they were trying to avoid the US banking system so that funds could not be seized (so much for that).

I can't see the article since it's paywalled, but the bank would have required that a certain amount of funds remain on deposit for the borrower to get the terms. I've seen and facilitated an SVB loan agreement for a startup, and I can tell you that's exactly what it says. So the bank required you to park your money there, and then it lost the funds. In any normal business context, the money lost would come off of the balance owed. It sounds like the loan was received from one entity, but the deposits were placed with another, and none of the parties contemplated a bank collapse that would require the bank to forfeit a portion of the owed amount.

[hughesjj]

Lol I call [bullshit](https://www.investopedia.com/ask/answers/100215/why-cayman-i....)

Not surprised the person "who has structured several hedge funds" is spreading misinformation about finances and taxes.