Isn't Citicorp owned by saudies and Abu Dabaiers now?LancsLad said:Such a problem this will be for New York bankers.
Are dividends OK under the sharia rules?bbking said:...it already exists, I know several private investors and one Mortgage Company that structures debt based on Islamic anti-interest rules.
bbk
BB, Do I properly understand that from the Mortgagor's (the debtor's) perspective a standard mortgage is a much better deal, than this sort of arangement (which makes sense, since otherwise why wouldn't people have demanded them long ago).bbking said:... the answer to the first point, is no. You won't see the Schedule A or B banks do them because no matter how it is done it has to be converted to an interest rate. You really wouldn't want to do this anyways as you would get soaked on the fees. . .
It really makes no sense for a non-Muslim investor to get into this kind of deal unless the fee is enormous. bbk
I would assume that when the bank co-owns the property with you, that the bank assumes some of the risk that the property value will decline, and also benefits when the value of the property rises as well.Aardvark154 said:BB, Do I properly understand that from the Mortgagor's (the debtor's) perspective a standard mortgage is a much better deal, than this sort of arangement (which makes sense, since otherwise why wouldn't people have demanded them long ago).
Dividends are capital distribution???????????bbking said:I'm not sure ... most likely not since they are not interest but capital distribution.
bbk
In U.S. Tax law, yes.danmand said:Dividends are capital distribution???????????
Don't ask me where my head was (actualy I do know and it was on neither on this or sex) which is why one should never give real answers off the top of one's head. Stock splits etc. . . are Capitial distribution and not taxed until realization. You are of course entirely correct that regular cash dividents are currently considered ordinary income in the U.S. although interestingly for many years from 1920 until the late 1930's they were not. Sorry for such a bone headed incorrect comment.danmand said:
This is simply a financial product. Nothing to get upset about. I think we came close to doing something much worse when we flirted with the idea of Sharia courts in Canada.When are we going to see this nonsense in Canada?
bbking said:I'm not sure ... most likely not since they are not interest but capital distribution.
bbk
