There have been "leaks" before but not really on the same scale as that in Panama last week ! They also caused embarrassement but finally there were few prosecutions.
This time the Panama "leaks" however were quick and caught some leading politicians off guard. Others could also soon be squirming. Infighting in political circles on isues like this one is, a well known sport and sometimes can be very profitable !
Some investors, who have hidden wealth to avoid paying taxes, may well want to transfer their treasures to new safer havens or simply withdraw the balance of their accounts. Could this not provoke problems for small banks ? All are not normally sufficiently "liquid" to do this ! Such banks need time and impose extra charges for unplanned repayment requests ?
If there are too many such requests, this could provoke a banking crisis, which is the last thing investors would want !
Just a few such requests would not make a ripple in the Banking system, but a small stampede could provoke a crisis !
The potential is there for a lot of humiliation, but for the glee of taxpayers !
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