From IFN Newsletter 5th June 2009
However, it’s a completely contrary picture across the Atlantic. Politicians and special interest groups have been very successful in arousing the ire of Americans over terms such as Islam and Shariah even when they are used innocuously. There were howls of protest when the Treasury co-sponsored a forum on the basics of Islamic finance.
However, it’s a completely contrary picture across the Atlantic. Politicians and special interest groups have been very successful in arousing the ire of Americans over terms such as Islam and Shariah even when they are used innocuously. There were howls of protest when the Treasury co-sponsored a forum on the basics of Islamic finance.
A law firm has created an online presentation that claims to show how Islamic finance poses “a real and present danger not just to our Western financial institutions built on disclosure and transparency but to our very system of governance and our way of life.” (http://www.davidyerushalmi.com/Law-Offices-of-David-Yerushalmi-present-Shariah-compliant-finance--disclosure--seminar-for-online-viewing-b9-p0.html) It’s a sure bet that the presentation never mentions how those in these “Western financial institutions” bilked billions of dollars and caused the system to practically collapse, while the losses were relatively minor in scale for those who used Islamic finance.
What takes the cake is that of a federal judge in Michigan who insists on continuing to hear a lawsuit challenging the federal bailout of American International Group (AIG) simply because it has subsidiaries that sell Takaful. Judge Lawrence Zatkoff contends that the US government’s majority ownership of the group raises the question of whether the government is promoting religion, contrary to the First Amendment to the US Constitution. AIG has stressed that its Takaful policies comply with all US laws. “AIG businesses, like other insurers and organizations, tailor programs for a range of religious organizations,” it said. “While they are desirable to those whose religious convictions preclude them from engaging in traditional interest-bearing structures, Takaful is also increasingly popular among non-Muslims who feel that the excess profit/charitable aspect is a socially responsible mechanism for the purchase of insurance.”
Obviously, education and confidence-building are two aspects that must be seriously undertaken if Islamic finance services, now being provided by a handful of firms, are to expand its beachhead in the US.
It is beyond me how stupid and paranoid some people can be. Shariah based finance is all about undertaking financial transactions according to the rules of Shariah. It has nothing to do with professing Islam. Using financial products which conform to the rules of Shariah does not make one a Muslim. The paranoia attached to Shariah based finance is unfounded, how could it be a funding tool for extremists if the products are offered by banks like HSBC, Deutsche, UBS, Standard Chartered, Citibank, Barclays and BNP Paribas? Are we saying these reputable Western banks are part of the extremist (terrorist) conspiracy?
These attacks on Shariah based finance not surprisingly, is sponsored by CSP (refer to my earlier posting – Someone’s Afraid of Shariah Based Finance) and a lawyer by the name of David Yerushalmi is in the forefront in waging war against Shariah based finance. I’m not sure what he is trying to achieve but one thing for sure is that he and his friends will not stop putting Shariah based finance down.
Let’s not waste time, effort and money trying to market Shariah based financial products in the US.
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