ST. JOHN’S, Antigua – ONE day after the Robert Allen Stanford US $8 billion scandal hit the press, hundreds of frantic clients and depositors lined the streets to Bank of Antigua, a subsidiary of Stanford Group of Companies, with the intentions of withdrawing their funds immediately.
As early as 7:00 this morning (Feb. 18), over 100 individuals had already been waiting at the entrance of the airport branch for the bank to open, and within a few hours, the number had been augmented to approximately 300. The downtown branch had its equal share of clients who lined up by the hundreds to reclaim their savings and investments.
News from that country indicates that at all bank locations’ security was notably increased mainly for crowd control but it was alleged that customers’ tempers were anticipated to flare.
It was also reported that there were additional restricted parking zones and only a limited number of persons were being allowed into the banks at any given time in an effort to keep order.
Although there has been no public statement made by the management of the Bank, Prime Minister Hon. Baldwin Spencer, in an address to the nation on February 17, said the breaking developments in the United States involving the Stanford Group have “profound serious implications” for the country, adding that “this is not a looming crisis”.
Spencer informed that the Eastern Caribbean Central Bank (ECCB) is “in touch with the Bank of Antigua and the government and is currently putting in place a contingency plan, therefore there is no need for panic”.
However, with the ongoing international crisis and the consequent impacts on the region, many depositors feel the need to physically secure their monies as the recession in larger economies may continue in the upcoming months.
One local depositor said, “Although the PM [Spencer] said that we should not panic, in these uncertain times, we must make sure that we can secure our money and if these banks are having trouble doing that, then the money in safer in my hands.”
Another client told SKNVibes, “It’s unfortunate how things happened after all he [Stanford] did in Antigua, but when it comes to Antiguans and their money, we don’t make joke!”
Robert Allen Stanford, CEO Stanford Group of Companies was charge yesterday (Feb. 17) on the grounds of fraud related to US $8 billion. Stanford, along with two top executives had been identified by the US Securities and Exchange Commission as being part of a massive ongoing investment scheme.
It is widely viewed that this recent development may have adverse impacts on Stanford’s Antigua-based companies including Stanford Development Company, Sticky Wicket and Stanford Cricket Grounds, and SUN Printing and Publishing Limited.
The US billionaire’s local operation is one of the largest employers outside of the Antiguan government. Some 200 persons had already been laid off from the Stanford Development Company earlier this year and more are expected to join the unemployment line following the latest turn of events.
This is the second tangible impact of the international economic and financial crisis on the region following the liquidity problems experienced by the Trinidad-based CL Financial Group when the government moved to withdraw its deposit of TT $100 million.
Antigua News