Posted on 02/20/2009 9:03:41 PM PST by rabscuttle385
ST. JOHN'S, Antigua (AP) — Caribbean regulators Friday took control of an Antiguan bank owned by Texas billionaire R. Allen Stanford to prevent its collapse as depositors rushed to pull their money after American financier was accused of fraud.
The Eastern Caribbean Central Bank, the monetary authority for eight island economies in the region, said the Bank of Antigua's board of directors requested the intervention because of the "untenable situation" at its three branches in the twin-island nation of Antigua and Barbuda.
"There has been an unusual and substantial withdrawals of funds by depositors from the bank precipitated by recently published statements regarding the chairman of the board of directors of the bank, which has the potential to create severe liquidity problems for the bank," Central Bank Governor Dwight Venner said.
The governor did not disclose how much money had been pulled from the bank since Tuesday, when U.S. authorities announced civil fraud charges against Stanford. Authorities have been urging depositors not to panic, fearing a bank failure could disrupt the local economy.
Separately, Antigua's Financial Services Regulatory Commission, which regulates offshore banking, appointed a British firm, Vantis Business Recovery Services, as a receiver of Stanford International Bank and Stanford Trust Company.
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The tragedy was that Stanford’s bank was the one that Venezuelans—high and low—desperate to keep their savings out of Hugo’s grasping paws had been using.
Well, at least Chavez now has a little more money now to help the poor. LOL
I have not seen a good detailed description of their operations - but I hope and pray there is no federal depository insurance coverage on this. Anyone who falls for this kind of scam, involving offshore operations, has to know they are taking a higher risk in order to get what they perceive as an additional increment of of return.
Like Madoff, it will be only a matter of seconds before you hear some suggesting they are owed compensation (from the Federal taxpayer) because the SEC could have done a better job.
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