Financial Haute Couture

The companies say that the stated $1 billion cost of leaving the tax haven is a worst-case number. They also say the value of Global Crossing's Bermuda tax haven was dropping as the company began doing more and more business in the United States, Europe and Asia because it's building all sorts of facilities in those places. So let's be sports and mark down the $1 billion cost to $750 million. Even so, bidding Bermuda bye-bye costs serious money. Proving, once again, that if you want to stay fashionable, you have to pay for the privilege.

Sloan is NEWSWEEK's Wall Street editor. His e-mail address is sloan@panix.com

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