Offshore Asset Protection
Guatemala Asset Protection
Offshore Education
Offshore Legal Articles
|
|
Balboa Bank to Take Over Where Stanford Panama Left |
|
|
Panama’s beleaguered Stanford Bank has now officially reopened as the new and improved Balboa Bank and Trust, severing the last of the ties with the fraud scandal that rocked Latin America last year when the bank’s founder was accused of perpetrating an $8 billion fraud.
Thanks to the dedicated efforts of the Superintendencia de Bancos de Panama (Panama’s banking and securities regulator), working closely with the receivership for Stanford Bank, the sale of the Panamanian affiliate was approved and finalized in March, and the bank re-opened its doors May 31st, for the first time in more than a year.
Pyramid Scheme Triggered Affiliate Suspensions The announcement came as welcome news to worried account holders, who saw some $170 million in assets frozen in February 2009 when the Stanford International Bank in Antigua at the heart of the surmised pyramid scheme was seized, and its affiliates throughout Latin America, including Panama, suspended operations.
Allen Stanford faces trial in January next year for his role in the purportedly fraudulent sale of $8 billion worth of high-yield certificates of deposits (CDs), the repercussions of which have been felt around the world.
The sale of Stanford Bank Panama was negotiated with US financial authorities (the Securities and Exchange Commission) as part of the liquidation of assets to compensate victims of the alleged fraud, yielding some $14.2 million toward that end.
Panama Clients’ Assets Intact Panama account holders have been informed that their assets are intact with the new Balboa Bank, and that they now have access to their funds in their entirety as well as interest accrued since the accounts were frozen.
“Clients are receiving 100% of their funds as well as everything owed to them in interest,” confirmed Ramón Martinez, vice-president of Balboa Bank.
Time deposits that expired during the period of suspended activities have been rolled over up to a year.
Balboa Bank Prepared for the Worst, Remain Optimistic The bank’s executives have also assured that the bank is not only highly liquid, but that they are also prepared to meet demand for total withdrawal by clients, though they feel confident that a run on the bank will not take place. Thanks to the high degree of involvement and oversight by Panama’s Financial Superintendent in orchestrating the transfer of ownership and recovery of all funds, they believe the new bank will be one of the most transparent and meticulously-operated in the country.
In an effort to further distinguish itself from its predecessor, the Balboa Bank and Trust plans to open credit operations in the coming months as well.
Venezuelans Reeling from $3 Billion Losses Other Stanford clients are not so lucky. Venezuelans were particularly hard-hit by the scandal, as they were estimated to hold a full third of the Antigua bank’s holdings, in addition to a local Stanford affiliate. The Venezuelan government took over the bank last year with promises to guarantee its holdings, however, proceeds from the $111 million dollar sale to the Banco Nacional de Crédito will restore only a fraction of the victims’ losses.
|
|
|
|
|
| © OffshoreLegal.org - All rights reserved. |
|
|
Secure Order
Sales
