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**Smart One** » 2011-07-28 01:06

That is why the Central bank is there to safe guard your deposit. It is the shareholders that have to hold their breath for a very long time. And what I understand so far they better come to turn with reality, cause what i've learned they ahve not even got that from this evenings meeting. They are still thinking that they will be getting something back for their shares in the future. There is not much information release to the public so we are just speculating. However that is the usual play script when a bank is in trouble. Stanford lost his bank BOA and it's now owned by those that put the money in to safe the bank.

**jampanop** » 2011-07-27 21:28

i really hope my deposit is safe because i am 1500 miles away from home

**fnpsr** » 2011-07-25 13:42

Tenman, Thanks for the information!!!

**tenman** » 2011-07-24 22:08

fnspr appologies for my tardines, just saw your post the url is http://www.caribarena.com/antigua/news/economy/10678-browne-releases-debt-figures.html

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**Maria V** » 2011-07-24 21:49

@ Peter Josiah. Its not Gaston who wants to get rid of Lester, its the people who wants Lester to be gracious and step down having served his time. Lester has seen the best of his days and its people like you who continue to stoke his ego why he is not letting go. Lester as your party leader in the next election at age 77 and ailing ? Five more years in opposition for you, Gaston and the Labour Party.

**Peter Josiah** » 2011-07-24 21:36

Yes it will be Lester Bird Prime Minister and Minister of Finance. And Junior Minister of Finance and Senator Lennox Weston will be running the Ministry. So I guess thats why Gaston wants to get rid of Lester. Because he knows he won't be Minister of Finance, Lester will be, with Weston as the Junior. Enough said. I wont respond to you anymore. You do't know what I know.

**Maria V** » 2011-07-24 21:04

@ Peter Josiah. Thank God, the Minister of Finance must be elected. Antiguans wont have to worry about the finance minister charging 3 percent for himself in addition to his salary and other benefits to restructure government loans.

**Peter Josiah** » 2011-07-24 20:53

Again, I say for the last time: Gaston is no match for Lennox Weston when it comes to finance and the economy. The ALP's next Finance Minnister is Lennox Weston. Enough said !!!

**Maria V** » 2011-07-24 20:28

@Peter Josiah. Gaston Browne, as the elected Chairman of the ALP, can speak on any issue. He has a graduate degree and a post graduate degree in Finance with 13 years banking experience, five of which was as a senior manager, not an intern. Who is best able to speak on matters of finance? Robin, Molywn, Weston, lester? Pleaseeeeeeeee. ..Stop the hate and envy and get a life.

**fnpsr** » 2011-07-24 20:14

Tenman, do you recall sometime ago there was debate between Lovell and Browne as to the amount of debt the government owes and Browne produced a spread sheet with the amounts owed and to whom? If you remember the article, can you please direct me to it? Thanks!

**fnpsr** » 2011-07-24 18:49

Tenman, well stated and I agree with you. I have no issues with your post!

**tenman** » 2011-07-24 18:18

fnpsr I agree with you that default will not happen, i did feel the need to point out it is indeed possible, though admittedly unlikely. Anyway like you I happen to think cooler heads will prevail and at least a temporary measure will be put in place. I know you will probably disagree but I think the republican stance is correct on this issue. Its time for the US government to start focusing on cutting back on expenditure. The tax figure is already too high and everyone agrees if anything focus on closing the loop holes. I dislike the current class rhetoric and know that the socialist leaning posters among us wish to fight a battle which will lead us nowhere.
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**PEACE** » 2011-07-24 17:59

Mr Gaston Browne,is not telling all,as a former Banker,knowing the Gov't owed the Bank a HUGE some of money,i believe he checked into what was going on,and know something like this would have happened.As an MP and chairman of the OP Labour Party,(IT IS POSSIBLE I AM DAF TO SAY THIS) you should have WARNED THE PUBLIC.I personnally believe there might be other FINANCIAL INSTITUTIONS THAT IS OWED HUGE SOMES OF MONIES BY THIS GOV'T,AND IF SO THE PUBLIC SHOULD KNOW,NOW>

**fnpsr** » 2011-07-24 17:54

Tenman, no matter the outcome of the current debate in the US concerning raising the debt ceiling, the US will not dedfault on its debt. We have enough revenue coming in monthly to pay our debts. Something else might be sacrificed, but not our debts.

By the way, I agree with your other comment.

**tenman** » 2011-07-24 17:03

Avid Reader there is no country that protects anyone from regular (legitimate) losses in the stock market. if persons are looking for such investments, they best stick to US treasury bills and bonds. Then again, isn't that what the current issue in the US is about regarding the debt ceiling? Imagine the US government, the first time in its history defaulting on its debts.
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**Avid Reader** » 2011-07-24 16:32

That is insurance against FRAUD through a broker., not regular losses in the stock market.

"SIPC does not cover individuals who are sold worthless stocks and other securities. SIPC helps individuals whose money, stocks and other securities are stolen by a broker or put at risk when a brokerage fails for other reasons"

**Avid Reader** » 2011-07-24 16:22

401K's are not insured or the stocks that you buy that is why so many people's pensions ended up under water. For alot of people, if you were planning on retiring that is no longer in the cards, I lost more than 1/2 of mine and I am not talking pence, I am talking real money.

**Peter Josiah** » 2011-07-24 15:19

Maria V, its because what he is doing is trying to outdo and show-up Lester Bird. Here he goes commenting and responding to everything like he is the leader of the party. He speaks for himself but he gives the impression he speaks for the ALP. He is not the leader, Lester is. And the ALP's voice on finance and banking matters is Lennox Weston.

**tenman** » 2011-07-24 13:36

Avid Reader investments accounts are also insured in the US. Its not the FDIC but SIPC where these accounts are concerned and the max covered per brokerage account is 500K (see http://www.membersvest.com/tii_sipc.html)

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**Maria V** » 2011-07-24 13:34

@ Peter Josiah. You missed the point, here we are discussing a national issue and you are seeking to reduce the conversation to Lester Bird V Gaston Browne... Chupz

**Avid Reader** » 2011-07-24 12:08

For the people who are comparing the US banks to Antigua, please note that there is such a thing in the US as FDIC insurance that gurantees depositors money up to $250,000 on a savings account. Do not confuse that with an investment account such as a 401K retirement account where indivuduals lost their shirts in the market. If a bank goes under in the USA individual deposits up to $250K is guaranteed by the government, the depositor will get that much back.

**Avid Reader** » 2011-07-24 09:36

The link to the FS is from the 3rdQ of 2008, why were they allowed to continue with the practices that are now such an emergency. They were in trouble since then. Their liquidity then was a little over 200M while their due to depositer were over 900M why were they allowed to continue on this parth for almost 3 years?

Antiguans need to get the government to become stringent with these banks. Costs need to be controlled, these silly colored financial statements that they produce at an astronomical cost need to end. Depositors need to say enough. I through a fit whenever I see the one from Commercial Bank, there is nothing wrong with recycled paper and in black and white.

**tenman** » 2011-07-24 08:50

Smart one I have stated already that I was provided with a copy of the 2009 audited statements, so please stop suggesting that they do not exist. When I heard of problems at ABIB in about 2008, I insisted that they provide me with statements and they did (2008 and then 2009). The only one I did not request was for 2010. Unlike you, I find it impossible to believe that that 2010 financial statements do not exist and were not provided to share holders. As far as shares go, shares were offered for sale in March 2010 but only to existing share holders. They also did not have to call a share holders meeting because they had been authorized to issue around 25 million and they had as of 2008 only issued around 21 million. I don't understand where you are going with the suggestion that equity offerings cannot be used to pay off debt. Many companies offer equity in order to cut down on their debt (Porshe did it this year, Excel Maritime and Dry Ships did it a few years ago and so also did ISS http://www.reuters.com/article/2011/02/17/us-iss-idUSTRE71G2CC20110217)
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**Maestro** » 2011-07-24 01:13

you seem intent on starting a run on the bank why is that? The us system is completely separate and distinct from what exists at the ECCB. It is impossible for the ECCB to allow ABIB to fail as such a failure would fall squarely in their lap being the one charged with oversight.

**Maestro** » 2011-07-24 00:59

It appears the most if not all of management that needs to go have already left.

**Smart One** » 2011-07-23 23:51

It would be therefore unwise for us to make any speculations until we have a document we can review. They are in breach of the banking act and the public should ask Sir Dwight why he has allowed this to go on for two years. Even the shareholders must have been sleeping. Wouldn’t you want to know how much your shares are worth each year, so you know whether to keep them or try to sell. If now you find out that they are worth nil what then?

**Smart One** » 2011-07-23 23:51

We have seen people in the US crying and people that were retired had to start and go look for a way to make a living again. Cause they had lost all their savings for retirement. The ECCB cannot guarantee us anything. All they know is that it would make matters worst for them. Tenman you said you were inquiring to purchase shares. Well as you know shares in these companies are not offered publicly. And the company cannot just issue new shares. They need a shareholders meeting for that and who would want to see their share devalued. If the bank was growing yes then they could offer more shares, but not to use the money to pay off debt. Furthermore I already mention that we cannot look at the 2008 financials because that financial report showed a good picture of the bank.

**Smart One** » 2011-07-23 23:49

I have heard the calls from the Central Bank and the Political Cronies. But I would like each of them to tell me whether they have large funds stacked away in ABIB. I also would like to know if Management and Board Members have their monies still in ABIB and if any has withdrawn in the last year or so some funds. Because this I believe would be very unethical to call it the least. When things where good the people who got the big loans and the overdraft were the business people and the so called rich. When they saw the problem coming many of them fled and I was made to understand that is what made matters worse. Which you can understand. In times of trouble you see who your real friends are. And what I can see ABIB has many real friends in the many little accounts holders that are keeping the banks door open even though they know of the problem. But I would not want to call on no one not to take their money if I cannot guarantee them that I personally would pay them any money they lose. So it is all well for Sir Dwight and the Politician to call for calm but at the end of the day where is the guarantee. In these hard times it is very hard if you lose your savings.

**Patriot** » 2011-07-23 23:27

I believe that Gaston Browne in a sepecial publication disclosed that the Government owes ABI over 400 million dollars. The Government and ABI board is responsible ABI demise. Where is the IMF ballout money?

**peter josiah** » 2011-07-23 22:42

I say this is a poor statement from Gaston Browne. Reason being it refers too much to himself (arrogance) and it is yet to reflect a party position. Gaston WHEN ARE U GOING TO STOP TRYING TO SHOW UP LESTER? No matter what u try with this 3 out of 10 statement, yu will never beat Lester Bird at an ALP Conventions. And yes I am an ALP supporter and I want Lester to be my Leader.

**STEVE** » 2011-07-23 22:21

Come Monday morning, my account is closed at A.B.I.B. and yes I am opening an account at a foreign bank. It is clear to me that Antiguans are not ready yet. Who want to cuss about running on the bank can leave their monies in A.B.I.B. I am out. Forget that.

**John French II** » 2011-07-23 21:49

Notes From A Native Son Of The Rock. This should be A Cautionary Tale, Not an Indictment. Be Careful of What You Wish For. Loose Lips Sink Ships with all Travelers. With Deep Respect.

**fnpsr** » 2011-07-23 21:43

Tenman, I forget to include the Board of Directors compensation. The average compensation for the Bd. Of Directors for FY 2008 was $48, 450. As I stated, previously, the board and the management team should be replaced. They were compensated well and have failed the investors and the depositors miserably.

**fnpsr** » 2011-07-23 21:26

Tenman, I thank you for the link. After a quick perusal of the annual report, I was able to find the answers to my questions on page 57. The number of shares authorized is 25M at a book value of $1 per share. The number of shares issued and outstanding is 21, 860, 440 at $1 per share, thus the capitalization amount. The company bought back 637K shares. Shares available for sale are 3,776,560.

Tenman, it appears that the share were not sold on the open market, thus suggesting to me a “closed company’ and this is probably why you were not able to purchase any shares.

The employees at ABIB are paid well. The average regular salary for 2008 was $68,512. The average, annual bonus was $10, 350 and when you add other benefits the average compensation package was $95,579. This is the place to work!!

The annual report shows that there are outstanding loans to Businesses and Government in the amount of $433, 365, 965. It would have been helpful if this figure was segregated.

Tenman, when time permits, I will read the entire report carefully to see if I can spot anything out of the ordinary. I would suggest all bloggers do the same.

**LikeWise** » 2011-07-23 18:54

I don't normally agree with you but what you said about the selling of shares and the reason more shares are not available is absolutely correct. It's almost the same thing at ACB now too. Are you a travelling man?

**tenman** » 2011-07-23 18:06

fnspr the one for 2008 can be accessed at www.abifinancial.com/abib/annual_reports/2008%20Annual%20Report.pdf

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**fnpsr** » 2011-07-23 17:09

John French II, your point is well taken!! We will have to wait and see how it turns out.

**fnpsr** » 2011-07-23 17:05

Tenman, I appreciate your input to my post. While you may have been interested in acquiring shares in ABIB and was told that they were not offering any new shares, it is quite possible that you may have been misled. While I do not know your financial capacity, the bank was looking for substantial investments to consolidate its financial positions. They had an immediate need and small investors would not have worked to their advantage and the paperwork would have been too cumbersome. “The squeeze was not worth the juice!”

Tenman, I believe that you have seen a financial statement or an annual report to investors for 2008, so can you tell me how many shares were authorized and the book price of these shares. Furthermore, can you tell me how many shares were issued and outstanding? Also, can you tell me the total capitalization of ABIB? Imbedded in these questions, you will be able to tell whether or not you were misled.

The purpose of selling shares is to raise money; so at the time you inquired, it appears that they had all the money that they desired, or as I have indicated, they were looking for “mega” investors!!!

**tenman** » 2011-07-23 16:10

fnspr I read the portion where you stated that the bank was shopping around for investors and will tell you that my experience says differently. Since 2008 I have asked them if shares were available for sale and they kept telling me no. The last time I asked was 2 months ago and the answer was still no. The only thing I heard of shares being able was about a year ago but they stated it was only available to existing share holders. A friend in the banking industry told me that this is part of the problem with the bank and Antigua. Persons enjoy keeping control limited to only themselves and a small group. Then again perhaps their problem was with small investors.
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**John French II** » 2011-07-23 15:28

Notes From A native Son Of The Rock. Your first para is an argument which accurately fits the US. It is not appropriate to the OECS and Canada whose Banking System and Central Bank is being seen as a better model than the US Fed. I maintain that The ECCB has done an Excellent Job. Not every Foreign Model Appropriately Serves the OECS Nations' Permanent Interests. We have Sir Arthur Lewis' Economic Model which has found favour and Success in the Far East most natably Singapore and The Aisian Tigers. If only we would support excellent home grown Institutions. As noted previously, Excellent Observation, Conclusions and well said. With The Utmost Respect.

**John French II** » 2011-07-23 14:56

Notes From A Native Son Of The Rock. Excellent and Well Said. Armed with the knowledge it is meet and right to always shout it from the Mountaintop. Don't have to name the offenders and hypocrites to get the warning to us "Pickey Head People". The "Corporate Welfare Bums" and "Blue Gusanos" already knew. Share the knowledge of the Hoity Toity with the Wretched. Have Mercy Pon Us! With The Utmost Respect.

**Antiguan Abroad** » 2011-07-23 14:53

Fnpsr: Well said. I hope this situation resolves to the benefit of the investors and depositors. The folks who are willing to stay and ride out the storm with the bank are to be commended. Good luck to them!

Aside from that, I hope that there are some ramifications for the management and others who put the bank in this precarious position.

**John French II** » 2011-07-23 14:38

Notes From A Native Son Of The Rock. My Dear Friend, "I also went against the grain and stated that had it not been for the ECCB Antigua & Barbuda and Dominica would have been totally Bankrupt and Destitute inspite of the rabble rousing of Senator Red." Touche. Revisit the Role Of The Eastern Caribbean Central Bank. Always Follow The Money. With The Utmost Respect.

**Maestro** » 2011-07-23 14:10

My DEPOSITS will remain at ABIB end of story.

**fnpsr** » 2011-07-23 13:43

In the US when a bank fails, the authorities (FDIC) move in to secure the assets and to protect the depositors. The failed bank is put up for sale and is eventually acquired by another healthy bank. The authorities are not there to run a banking operation. As stated previously, their main purpose is to protect the depositors. The investors have no guarantee of return of principal. Therefore, it is conceivable that ABIB could be liquidated and or absorbed by another bank.

For ABIB to survive, it must revert to its core banking operations; be promptly paid what its is owed by the government; convene a new Board of Directors and management team and reduce the number of irons it has in the fire.

May God help Antigua & Barbuda!

“Let’s fix the little things before it attempts to fix the big things.”

**tenman** » 2011-07-23 13:43

jeb, I for one will join you in that support not only via blog but also via my funds. Why would I run and take my money off and deposit it with some foreign bank who in the long run, based on what John French II wrote, does not really care about me. I recall, some years ago, being told by my former account officer, at a non local bank: we really do not need your deposit. We have plenty cash and our interest is in offering you loans (at that time it was 11% for a mortgage).
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**fnpsr** » 2011-07-23 13:40

Some have made reference to the Stanford Bank failure and have opined that since the Stanford Bank was saved, ABIB will also be saved. I believe that there is a difference in the situation of the two banks. The Stanford Bank did not have a liquidity problem. When news surfaced about Stanford, fear emerged and depositors wanted to get their money. The ECCB stepped in and cooler heads prevailed. The Stanford Bank was re charted and it is fully operational.

The problem with ABIB is that it has a major liquidity problem. It has a Board of Directors that have overseen a failed bank. In short they did not perform satisfactorily. The management team was unable to prevent the bank from failing. The Bank had too many irons in the fire and had become unmanageable. It is rumored that the Government of Antigua owes ABIB a substantial amount of money and is unable to pay. The investment by the ECCB will require a substantial investment to turn around the situation and considering the present economic conditions in Antigua, it will be a long hard row to hoe.

**fnpsr** » 2011-07-23 13:39

It is no surprise to me that the bank has failed and as such the Board of Directors and all management staff should be fired forthwith. I have heard for a long time that the bank was in trouble and had major liquidity problems. I believe it started when one of the investors, hearing about the problems at the bank, decided to divest from the bank and requested his money. The Bank was unable to pay him. I further understand that the bank was shopping around for investors, but word had surfaced the bank had become a liability and potential investors were staying away. Additionally, it appears that the Bank had too many irons in the fire. As a result of its present condition, a full forensic investigation would be in order.

**fnpsr** » 2011-07-23 13:38

I empathize with the investors and depositors of the bank. I am glad to see that the PM reached out to the Opposition to inform them of the situation. I hope this type of relationship continues on all matters affecting the island of Antigua. I feel a sense of hope, but we will have to see what happens from here on in.

Mr. Browne has given an eloquent speech asking for calm and I agree with him. However, we are still in the dark as to why the bank has failed. Some bloggers may have heard rumblings, but have not said anything.

**jeb** » 2011-07-23 13:21

My family have been depositors in ABIB from the inception and have to say that we always received the very best of service, help when needed and courtesy from them. We will continue to support this company and the ECCB management have our full confidence for a positive outcome over the next few months.

**jeb** » 2011-07-23 13:18

It would be a catastrophe for ABIB or any other bank in this island to go “under” and anyone who pushes or contributes to that outcome is definitely not interested in the survival of this country as a whole, not just a bank. Antigua is fragile at this time and it is my opinion that a rush or a show of lack of confidence such as what happened to BOA (many of their customers have now returned) would be extremely foolhardy of the depositing public. This would show no regard for a better future for absolutely everyone residing here regardless of whether they are an ABIB customer or not. For a FACT the board at ABIB no longer exists and the new manager on behalf of the ECCB is a very confidence inspiring person. Politics aside, this is a time that the people of Antigua need to be UNITED in their support for the new management in what will be a successful outcome (which CAN work with the support from the public).

**tenman** » 2011-07-23 13:10

John French what bank in Dominica has the ECCB taken over if any? I ask because of your 2011-07-22 23:07 post.

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**Just Thinking** » 2011-07-23 13:08

I hope that ECCB will now look at ownership and management of Financial Institutions more carefully. BOA, ABIB, British American, Clico all took people's money and there was apparently inadequate regulation as to what they could do and did with that money. Also, buying and selling anything (shoes or cars or panties) does not make one a "business expert" to sit on Boards of public interest companies, including Govt bodies. Persons that sit on these Boards should have academic training and some level of Financial expertise so that they can at least grasp info presented to them and make sound decisions.

**John French II** » 2011-07-23 12:53

Notes From A Native Son Of the Rock. Living in the Good Ole USA is not the same as Living in Caricom, the OECS or more importantly Living In The IMF's NEST. Comparing the Banking Systems is Fallacious and Flights Of Fancies. If you wish to Make Comparisons. Try The Canadian Banking System and the Role of The Bank Of Canada. The Canadian Banks, specifically Royal & CIBC were asked to assist in the Rescue of 2008. They politely and astutely declined. TD has taken a different position even before the CRASH and bought out a large number of Small Banks on the East Coast States of the US and now has revolutionized banking services 24/7/365 and has more branches in the US than In Canada. Again the ECCB is Unique In Central Banking. The OECS have something that is amongst the Best. Let them play their Role.

**John French II** » 2011-07-23 12:30

Notes From A Native Son Of The Rock. ABIB is the Canary in the Mine.
Now What? This is where the ECCB, notwithstanding the Red Senator's Fulminations and Thunder Bolts hurled at Sir Dwight from The Oracle of Grenville , is.To maintain the stability of the EC dollar and the integrity of the banking system in order to facilitate the balanced growth and development of member states.To Bank aspires to be: A model for management in the ECCU. The monetary arrangements are characterised by: The issuance of a single common currency, the flow of which is unrestricted among its members.A common pool of foreign exchange reserves. The purposes of the Bank are: To regulate the availability of money and credit. To promote and maintain monetary stability. For those who want more.
www.eccb-centralbank.org/about/who-we-are.asp
Respect.

**Dig It** » 2011-07-23 12:25

Meant "...have US push behind the broken down wagon?

**Dig It** » 2011-07-23 12:19

We really need to get our priorities in order because at the end of the day our goose to cook! The fact of the matter is that our financial sector is in serious crisis, and heading a different direction! Although I agree with MP Browne's statement that this is "national issue," the ones who failed to watch the shop should be held accountable when all is said and done! We need to know what happened at the bank, and where the chips fall! And, I don't need to commend the PM or the government for taking any measures to stabilize ABI and the banking sector! It is their duty in any crisis to tell the people to remain steadfast and patience! How much long will they have push behind the broken down wagon?

**John French II** » 2011-07-23 12:05

Notes From A Native Son Of The Rock. A Liquidity Problem has been Identified. Sir Dwight has stepped in as is the Legal Role of The Eastern Caribbean Central Bank. They did not state that the Bank was Bankrupt. They will be providing Management of the Bank's Operations. Let's read Sir Dwight Venner on the ECCB's Role and appreciate what they are doing to SAVE Antigua & Barbuda from a run not only on ABIB but all Banks and in Particular LOCAL BANKS. http://www.eccb-centralbank.org/PDF/governor%20speech-17-10-2000.pdf The Foreign Banks already started to take steps, which seems also to have been missed by many. My suggestion is always to "Follow The Money" and the Banking Decisions of the Canadian Banks in The Caribbean. They will always provide you with a barometer as to Monetary, Financial and Economic Directions in Caricom. Follow all of their latest Banking Consolidations and Corrections in the Press. The ECCB is Unique in This World and Is to be Appreciated & Applauded. I gave an Example Of The CFA and Former French African Colonies previously for comparison. Research. Heaven Help The Nation Of Antigua & Barbuda - Redonda?

**Seriously** » 2011-07-23 11:54

It must be the SEC's fault!

**OO7** » 2011-07-23 11:52

ABI BANK WENT TO BED WITH THE UPP GOV'T AND THEY ARE REAPING THE RESULTS OF THEIR MIS-TRUST. WE ALL KNOW THAT POLITICIANS DON'T TAKE BLAME FOR ANYTHING.
@P.L.S. ABBOTT YOU ARE DEFINITELY ON THE RIGHT TRACK. I'VE HEARD THAT CUSTOMS IS IN DEEP DODO. I DO HOPE THAT WHEN THE DODO HITS THE FAN THESE CIVIL SERVANTS HEADS DON'T ALLOW THE POLITICAL GOONS TO GET OFF SCOTCH-FREE

**Tobi** » 2011-07-23 11:48

I'm impressed with Gaston's responsible statement on the matter -a hopeful sign for future leadership.

**BEEF** » 2011-07-23 10:50

So Tenman, the local managers would not sell but E.C.C.B. staff who is coming in to manage day-to-day activities will? We will see (and hear) Tenman. It is sad that I have to say this, but it seems that locally run organizations always find a way to snatch defeat out of the hands of success. We know what the problem is. Let us own it and do something about it.

**tenman** » 2011-07-23 10:38

BEEF I hear you and chances are it will result in them (ECCB) having to provide moneys. However perhaps one method they might be looking at to solve the liquidity problem is via the sales of some assets directly owned and some from loans which are in arrears because of non payment. I recall from the 2009 statement that they had a high level of non performing loans though still making a net profit. In the past there was probably a fear of selling these items at a perceived high discount, but they may have no other choice.

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**Antiguan Abroad** » 2011-07-23 10:32

Tenman: There are many smart people in the US who believe that any financial institution (including AIG) should have been allowed to fail if they cannot remain solvent on their own. The fact of the matter is...many people believe that the government bailout did little to help anyone but the fat cats on Wall Street. Even President Obama himself categorically stated it would never happen again under his watch. Typically, the people who benefit most in these bailout scenarios are the people who created the problem in the first place. As I said, no institution should be considered too big to fail...for whatever reason, including mismanagement and malfeasance by the officers. So, if I was an investor or depositor at ABIB, I would immediately try to get my money out....if I had problems getting it, I would demand a criminal investigation into the matter.

**BEEF** » 2011-07-23 10:09

If there is a "liquidity prolem" what do you think the E.C.C.B is going to do? Just move their "people" into the bank and that's it? If that is so, how exactly is the liquidity problem solved. I read that the bank could not even meet its "statutory deductions". How is this dealt with Tenman?

**P.L.S Abbott** » 2011-07-23 09:59

Its amazing that the people that sank ABIB are now in control of the Govt. You can start with Direct Joseph first given our port and see how that has fail. He was then rewarded APUA, TO CRUSH APC.He buys bencorp !!! , a chinese engine in the making for 5 years and cant give current!!! and doubles our electicity rates at at same time putting apua in dept of over $300,000,000.. Next was abi's Former GM sir EVERTT, CUSTOMS and IRD was his gift,and look how that has failed; and is destroying business and the economy!!!
Next is LADY joan and the STATE INS great sell out.ect...
More to come''''''''''' ''''''''''''''' !!!!!!!!!!!!!!!

**Maria V** » 2011-07-23 09:55

We are poud of you statesmanship Gaston. Keep it up. By the way, keep your comrades in line too.

**tenman** » 2011-07-23 09:55

BEEF good questions which need to be answered. However when you see someone in danger of being killed don't you save them first? As far as the ECCB pumping in money, I have read nothing about such. All that has been stated is that the ECCB has taken temporary control. Observer article states:
"(ABIB) has been taken over by the Eastern Caribbean Central Bank (ECCB), at least for the time being, in an effort to nurse it back to financial health..The presenters at Friday’s press conference did not characterize the ECCB takeover as an emergency or crisis bailout on the scale of that which saw the former Bank of Antigua converted into Eastern Caribbean Amalgamated Bank. Rather they painted a picture of ECCB stepping in to supplement ABIB’s managerial capacity."

Beef perhaps the portion about managerial capacity will shine some light on your question about the staff members who were fired for bad performance.

..

**Fred** » 2011-07-23 09:54

If the MP were to include issues about the management misbehaviour and government mismanagent the call for stability would get lost. His call for stability to avert a run on the bank to protect poor people money was the right thing to do. The answers to the questions could be addressed after the bank stabilises.

**tenman** » 2011-07-23 09:38

MP Browne well said. Antiguan Abroad, I have to wonder if you would be saying the same thing if the US government had allowed entities like AIG to fail? It was because of the repercussions of the Lehman failure why the government did not allow the others to fail. Some have argued that it was this failure which resulted in a domino effect on other institutions, since they were all tied together. Where ABIB is concerned, perhaps I would be accused of being naive but I am less concerned about the bank because of ECCB involvement and more concerned about things like their Insurance sections. I recall persons spouting ABI as a great (good) and perhaps only example of what happens when locals put their moneys together. My position is if it can be salvaged and end up not being an anchor around our necks, we should not allow it to fail.
..

**BEEF** » 2011-07-23 08:50

This is the problem I have in Antigua. NOBODY TAKES RESPONSIBILITY. All of a sudden it is not political but national. As a former banker, maybe Mr. Browne can tell me, what caused the “liquidity” problem at bank? Was it alleged investment in real estate outside of Antigua or was it because of monies owed to the bank by government or was it both? The monies that the E.C.C.B. would pump into the bank, is it a loan or is it converted into shares? Ultimately, will majority control of the bank still rest in the hands of Antiguans & Barbudans? One last question Mr. Browne. Are you aware if there is any truth to the allegation that two persons now working for government was fired from the bank because their performance was “found wanting”? Since the Prime Minister is calling you and “informing you” maybe you could use your good office to get answeres to my questions. I suspect that the public would have a keen interest in the answers.

**pedro** » 2011-07-23 08:49

I hear you Gaston Browne, but whey de money gorn? It is good that the PM could call now, why didnt he call before IMF took over our this big country bank of ours called Antigua and Barbuda. My simple response/advise to the PM he accepts reality and throw in the towel.
Baldwin Spencer and UPP must go, they cannont and I repeat cannot competently manage the affairs of this State. People, I know it's hard to accept the truth especially when we know and support Spencer and UPP, but it is time to save what remains of this State of ours. Save the Bank , get rid of UPP.

**Wada** » 2011-07-23 08:43

I am very pleased to read this and that partisan politics didn't need to have been brought into this issue. This is what I would like to see on a number of other issues, it is not about red bs blue or us vs them but a "national" issue. Thank you sir.

**Beverly Mcgowan** » 2011-07-23 08:24

I am coming home to get my money. Banks are falling all over the world as people are corrupt all over the world. Unfortunately, these are the sign of the times.

**Rural east** » 2011-07-23 08:13

That why we put Hon Lester back in parliment and thats why if he cant walk we would put him on our backs to get him in parliment

**Business woman** » 2011-07-23 08:09

Now upp mess the airport, APUA,CMC, the port ,State Ins ,ABIB bank,matter afact the whole country,After they borrower so much money and cant payback,after they so much about Hon Lester and the ALP look how god allow thes things to happen the same old brains they use to laugh at in parliment they are calling for help,Bring back the old drver the so call young one cant driver so much loan from everywhere and Nothing to show for it

**Skyewill** » 2011-07-23 07:29

When they say there is nothing to fear. "FRAID" I had a house guest almost 2 years ago and I have blog this in the pass. I told that person to get out of that and come into this. An original stock holder, she had confidence that everything will be fine. How can a common man see this happening almost 2 years ago and the people on the ground with all their audits and regulatory expert wait until now to fix this? Like any untreated disease you probably have gangrene and now you have to chop off a foot. (Sell off one of the operations, if you can) Boy they sure could use State Insurance assets right about…. now. (The plan). Mr. Browne, you can not serve 3 masters, chose your master well. What will be your legacy? Will you remain on all sides or will you be known as the one person who stood up against all odds and bring the people the truth. I will not be easy search for fortitude. Don’t let this country fall.

**Antiguan Abroad** » 2011-07-23 07:26

Based on what I had been hearing and reading over the years, ABIB had been diversifying outside of it's core banking business into real estate and other risky ventures. Obviously, these "investments" were done with other people"s money (depositors/inv estors). Were these types of actions legal, and were they being properly reviewed and approved by banking regulators? If so, why is ABIB in the position it now finds itself? I think the facts show a striking similartwosome some of the civil and criminal charges being levied against Allen Stanford by the SEC. It is left to be seen whether the operators of ABIB will suffer any real repercussions as a result of any potential wrongdoing. Judging from the initial remarks from the PM and Opposition, it appears that their sole concern is to prevent a
"run" on the bank. But sooner than later, people at the top should be held to account for creating this situation.

**Fred** » 2011-07-23 07:19

Very responsible statement. Well done!

**Antiguan Abroad** » 2011-07-23 04:04

Aside from the usual platitudes being bandied about by all of these politicians, what is really going on at ABIB? Mr. Brown makes a brief reference to a "liquidity" problem at the bank. The logical follow up question should be....why is there such a problem? Should there not be an immediate investigation to determine whether or not criminal or civil liability exists, or whether there has been any type of misconduct by the senior executives at the bank?

If there is one thing to be learned from the US banking crisis of 2008, and even the Stanford debacle....no company should be considered "too big" to fail. It makes little sense to me to have the ECCB artificially propping up these
banks and asking depositors to remain calm and leave their money in a self-described "illiquid" bank. Be honest with the depositors and investors, and let the chips fall where they may.

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