The Bank of Bermuda?s shareholders? overwhelming vote in favour of the bank being taken over by HSBC Plc marks the end of one chapter in Bermuda?s economic history and the beginning of another.

To some degree it shows how difficult it is for a country to set its own course in today?s global economy. HSBC?s revenues are many times greater than Bermuda?s, and having agreed to relax the 60/40 ownership rules for the bank, a takeover was always possible.

Now the old assumptions about protectionism and local ownership of Bermuda institutions are dead. It will not be possible to maintain 60/40 ownership rules for other businesses for very long while the HSBC logo is on the Bank of Bermuda?s building.

That, coupled with Government?s decision to allow ACE and XL to buy the Bermudiana property and more recently to allow XL to take part in redeveloping the Belmont Hotel, means that the distinctions between exempted and local companies have now blurred to the point of nullity.

It is said that everything is for sale at the right price, and that is now the case for Bermuda. It is, like it or not, a part of the global marketplace.

That does not mean that governments are powerless. The Government and the Bermuda Monetary Authority must set down guidelines of what services they expect the bank to perform in Bermuda as a condition of its licence.

These cannot include employment requirements, but they can require the bank to continue to lend and provide mortgages to domestic customers and to provide savings accounts and the other services that banks customarily offer to customers.

On the question of ownership of other businesses, the situation is much less clear. Of course, Bermuda has always waived ownership requirements when it was in the national interest. Had it not, the Island?s hotel sector would be in even worse shape than it is now.

But it may now only be a matter of time before overseas investors seek to gain control not only of the Island?s other banks, but of the Bermuda Electric Light Company, KeyTech and other major local businesses.

That is not entirely a bad thing. As with the Bank of Bermuda takeover, foreign owners could bring economies of scale and new products and services that are just impossible for a local company.

But in exchange for that, Bermuda will have to face up to loss of local control of the businesses with all of the risk that that could entail. That again means that local licensing and other regulations will need to contain guarantees that service quality does not decline.

At the same time, it is important that regulations are not made so cumbersome and overbearing that it stifles business ingenuity and entrepreneurship. That is already becoming a problem and it is important it does not overwhelm the local business sector.