Est.2007

Barbados Underground

Bringing News and Opinions to the People

What Buy What BNB What?!?

← Back

Your message to the BLOGMASTER was sent

CONTACT THE BLOGMASTER ONLY

Submitted by Bush Tea

barbadosnationalbankOK, I admit that Bush Tea is a freak that suffers from strange brain waves and, like some living at a certain place in Black Rock, cannot be relied on to have rational opinions. But cud dear, even in such a state Bush Tea is challenged to understand why we would want to buy back the BNB.

Admittedly, we should never have sold it in the first place. But having sold the thing – and it seems like the buyers were happy, we were happy, everybody was happy – now I am hearing all sorts of big-up bright people talking about finding hundreds of millions of dollars to buy it back?!?

WHAT THE  ????!!!

A fool and his money are soon parted. Here we have a small country that produces NOTHING. Have no natural resources. Facing difficulties ahead – and from the Prime Minister back talking about spending precious money buying something like BNB???

These people really ‘outside’ the fence at Black Rock?

Listen to Bush Tea’s foolish advise people. Let Republic Bank keep the thing. Why can we not see this as an opportunity to at last produce something for sale –National Banks!!!

All like now, we should have started two more national banks – The National Savings Bank of Barbados and the National Commercial Bank of Barbados. Bush Tea estimates that it would cost about 5 Million dollars each to start such a bank.

Any ‘national bank’ is purely a creature of the government of the country. Government stipulates which institution it will use. Credit Unions decide where they will save their funds. Barbadians decide which bank they will deem to be ‘their’ bank.

In short order, we could also sell these two other ‘national banks’ maybe to Venezuela and Canada for 200 –300 million U$ dollars each. – All the while we starting on ‘national banks’ numbers four, five and six….

This is so obvious. Barbados could be in the business of growing and selling ‘national banks’

Wanna see now why fools are always poor?

Instead of exploiting a super business opportunity and making hundreds of millions of dollars per year, our business ‘experts’ are recommending that we BORROW money to buy something that we can replicate for next to nothing. Well! Well! Well!

In the old days when we had people like the Dipper in charge (and when the Bush Tea had a younger and more agile brain) we had this identical situation and it is well documented in calypso.

Apparently, a Trini decided to invest some meat in a Bajan pot of rice. That old time Baje readily acquiesced to the investment and everything went well until things came to a boil, at which point the ‘Dipper era Baje’ invited the Trini to hold on to his investment while that Baje divested his shares of rice.

Um is the same thing. What buy back what meat what?

Discover more from Barbados Underground

Subscribe to get the latest posts sent to your email.

  1. Adrian Hinds Avatar
    Adrian Hinds

    BT don’t be fool by Thompy’s statements. It aint only Mottley that playing politics with Assets and the Trini connection. As the Bees sought to make headway in marketing fear and panic to the public that Trinidad gine really own Barbados now, Thompy sought to remind them that it began long before him with Owen’s sale of BNB.

  2. BAFBFP Avatar
    BAFBFP

    BT
    The term moral suasion means nothing to me. Government needs to have better control of the fees and rates set by retail banks. The best way to do this is to have controlling interest in one of them. Drive the market at the point of delivery of the service. This not their plan of course but damn, it should be…

  3. notesfromthemargin Avatar
    notesfromthemargin

    I have not yet heard a reason that makes sense to me as to why Government should take up money to do this, particularly given the economic environment we find ourselves in.

    Perhaps this will emerge with time.

  4. Makaveli Avatar
    Makaveli

    Form another Bank and do what BAFBFP suggests. Why would you have to buy BNB to do that??

  5. Tell me Why Avatar
    Tell me Why

    Open a new bank call Bank of Barbados, remove all business transactions from the BNB and presto, we have a bank minus the forking out of US$300 million of our taxpayers’ money that the Gov of T’dad is waiting for to bail out CL Financial.

  6. David Avatar
    David

    @Tell Me Why

    Your strategy would undermine BNB a significant bank in our market. Also what happens to the minority holdings of NIS in BNB?

  7. X Avatar
    X

    I think this is a far better idea that dropping hundreds of millions on what is now a very well run bank (I hate to utter such compliments about media-whore Le Hunte) and will invariably slide under the control of the Government. Government’s should not run banks and the improvement of BNB since it was sold is the perfect example of this. Government appointees are not motivated only by growing profits, they are motivated first by political goals.

  8. David Avatar
    David

    @X

    The point which is being missed by many is the fact Prime Minister Thompson has indicated that he would want to mobilise private sector interest to buy shares at home and Bajans in the diaspora. If his wish is achieved the ownership would represent a consortium of sort and not a pure government ownership.

  9. John Avatar
    John

    …. but David, ….. most of the large Barbadian owned private sector interests have already been sold over the past 25 years to outsiders?

    Think Plantations Ltd., Cotton Factory, BS&T, The Advocate, The Nation, etc. etc.

  10. BAFBFP Avatar
    BAFBFP

    X
    The supplying of money to the general market is to essential a service to be driven solely (or at all) by profit motive. You are wrong, dead wrong! And so too is the Prime Minister for assuming that because investors will come from the Barbadian Diaspora that that will make things any more forgivable.

    Denny Crane

  11. X Avatar
    X

    You are right and wrong. Money supply is managed by the Central Bank which doesn’t have a profit motive. It is executed through the infrastructure provided primarily by the commercial banks. They must be profit motivated to ensure that they allocate capital is the most efficient manner, i.e. lending to credit worthy people as opposed to lending that facilitates political objectives.

  12. X Avatar
    X

    David, I agree that a local private sector buyer is more appropriate than Government buying. But I don’t believe that there will be local private sector money looking for BNB ownership at the beginning of a recession. Also who could you identify as a local suitor. Large amounts of capital are not held by the same people with banking experience. I can’t see the Caves, Goddards, Williams, Simpsons, etc. getting into a sector that they do not fully understand. And the local bankers with experience (Jordan, Royer, Cozier) don’t have the captial to buy a bank.

  13. BAFBFP Avatar
    BAFBFP

    Oh God man!

    Why do you think that profit motive is the only means to keep people on the straight and narrow? The fact that the CB declares a profit is something that I will find time to check, but you must know that the Fed Reserve does not do so on stated policy.

    Development of the productive sectors in Barbados is something that the profit driven banks have steered clear of. Manufacturing, design and technology, feeding you as a nation… these are Latin terms to bankers. “Risk adverse”; that’s the term, and they are in the driver’s seat to create the money to service the “market”; i.e. people like you and me with dreams and ideas that are not designed to exploit Bajans. How are the Caves, Goddards, Williams and the rest going to change any of this, if they were interested in ownership?

    Wrong man… give me politics anyday ofver profit…!

    Denny Crane

  14. queenam Avatar
    queenam

    It’s only a fool who would suggest that we should give up the BNB. It should have never been sold but people’s eyes are now open and we need to have the bank back in barbadians hands, at what ever cost.

  15. me Avatar
    me

    We do not need to buy back BNB and definitely not now…the shares are too high at this time.

    We need to spend the money where it si needed

  16. Straight talk Avatar
    Straight talk

    I am in total agreement with me.
    me says buying BNB is a mistake.

    I say the GoB has never ever in its 41 years of existence been able to run a commercial business successfully.

    What makes this BNB proposal any different?

    Perhaps if we were able to sell on GEMS assets at a profit and use these funds, I might be persuaded the government has the ability to harness our management potential to make a return on any nationalised product.

    But until the financials of GEMS are finally published, we must assume that they are disastrous, and so was the business plan which recommended it for public investment.

    Banks, indeed all financially exposed entities are the most vulnerable to the unfolding nightmare of asset revaluation.

    It is the very last business a government of a small island nation should be involving itself in, at this most unsettling time.

    Any foreign reserves we have left need protecting against the greed of these former financial whizz kids who have single-handedly destroyed the credibility of our whole financial base.

    Put Barbados first, PM, you swore to do so.

  17. X Avatar
    X

    I didn’t say that the Central Bank didn’t make a profit, I am saying that they are not motivated by profit, they are motivated by the need to manage the money supply to ensure that inflation doesn’t get out of hand one way or the other and that there are sufficient foreign exchange reserves to maintain our currency peg. Any profit that they report would be incidental to these primary responsibilities.

    As far as banks here being too risk averse, I don’t at all disagree. But I would contend that BNB in Trinidad hands has become more of a risk taker than before. They do lend to the tourism sector to a much greater degree than the Canadian banks and are the kings of easy credit to consumers (their loans to go program is a perfect example encouraging people to borrow money for flat screen televisions and ski vacations by the looks of their past advertising campaigns.)

    That list of people I gave was also not meant to suggest that they could do anything about it – quite to contrary, my point was that they probably couldn’t, they don’t have the skills, and as a result woudl likely stay away. Meaning the only buyer with the captial (and seemingly the desire) to do this is Thompson’s government. I contend this is motivated by the wrong reasons (nationalism) and will have negative consequences related to the beaurocratic and politically motivated leadership that is inherent in a Government owned bank.

    I thought of another consequence wil listening to today’s call in program. That is compromising our foreign currency reserves. Republic (assuming a purchase by Gov’t) would likely want the capital returned to Trinidad thereby reducing the country’s foreign currency reserves as a time when our two main productive sectors (tourism and int’l business) look set for a slide.

  18. X Avatar
    X

    Fantastic contrast to GEMS, bravo to straight talk

  19. David Avatar
    David

    Maybe the debate needs to be expanded to examine systemic risk etc. In Barbados there is a heavy concentration of ownership of several key business lines in Barbados by T&T etc. The global meltdown and the recent CL Financial bailout exposes the risk to Barbados given interconnectivity of economies that we should be minded to not always look at profit but to consider maintaining a healthy local interest in key sectors e.g. banking, insurance, etc and use strategic partnerships to deliver superior service/products.

  20. Straight talk Avatar
    Straight talk

    David:
    To what risk are you referring?

    You think we are being lied to by our financial inspecters?

    You may not, but I will stick my neck out and say our governmental safeguards are completely ineffective against the tidal wave of unsecured debt which will soon engulf the whole world.

    To put it simply, we a little ass speck in a fucked up market have absolutely zero say in the final shake-up.

    And the sooner our leaders tell us so, the bettr,… for them and for us.

  21. me Avatar
    me

    yes but why maintain a key local interest ( by govet) in a private bank when it is not profitable. Its a bank fer crying out loud. Its not the public library, the barbados museum, the airport, the school system.

    Years ago japanese interests bought the Rockefeller centre amonts a lot of hue and cry about it being a symbol of the USA. Guess what a few years later when the japanese could not afford to keep it was bought back by the americans. It never ceeased being a symbol of America. A bank is not a national symbol.
    I have more problems with the fact that the ICB building was sold to BNB/trinidad and even then ( if T &C rules to preserve nistoric structures are in place ) im not really bothereed!

  22. Annette Avatar
    Annette

    What exactly will be the economic value and gain to Barbados at this time, if it purchases BNB.

    How will purchasing BNB assist the government in getting the much needed revenue to roll out its programs which it says it will fast track to assist with maintaining employment in this current economic melt down both in the short term and long term?

    And guys..could any one answer me why if Four seasons planned to reopen in a week or two it would have paid to move all the heavy duty and I mean heavy duty construction machinery from the site?

    Am I missing something or did the press ask this question and receive an answer?

  23. Bush Tea Avatar
    Bush Tea

    @ everyone,
    Thanks for the feedback. I still have a few more questions.
    There seems to be a general consensus that BNB has been ‘better run’ since the change in ownership. Can X or someone who understands these things please explain what ‘better run’ means?

    I am at a loss.

    Does this mean declaring a seizable bottom line profit? If yes, then no wonder so many brand name banks have loaded their books with assets like real estate, whose value was until recently at the whim and fancy of subjective valuers.
    In BNB’s case, does the ABC highway loan for example represent the kind of ‘better management’ displayed?

    Bush tea suspects that the main difference between privately and publicly owned banks is the degree of secrecy possible in the latter, which gives the impression of soundness – until the FBI moves in.
    For example, Sandford’s businesses were ‘well run’ until last month.
    With publicly owned banks (and Credit Unions) there is better awareness, more openness and hence much more prudent management.

    I like I like the old BNB yuh.

  24. David Avatar
    David

    Read this article which was penned by Hilford Murrell back in 2007. In the article the BU family should take note of two points which we have highlighted.

     

    In the four years preceding the sale, BNB had reported pre-tax earnings ranging from $16 million to $28 million and seemed on a sustained growth path.

    A majority sale of Government’s shares therefore seemed highly unwarranted.

    Arthur’s decision to proceed with the sale was met with mounting criticism on the grounds that there was already too much Trinidadian interest in Barbados. In particular, he was charged with squandering the legacy of his mentor Tom Adams who, in establishing BNB, courageously conceptualised and brought to fruition the country’s first national commercial bank.

    Despite the censure and condemnation, the Finance Minister maintained that BNB’s future development resided in a strategic alliance with an established regional or extraregional financial institution.

    The two points in our opinion debunks the myth that the BNB was not an efficiently run government bank and it gives an insight into why the bank was sold. Bare in mind that several other international banks would have been operating in Barbados at the time. 

  25. BAFBFP Avatar
    BAFBFP

    BT
    “Sandford’s businesses were ‘well run’ until last month…” And there you have it. Tek dah Straight Talk, oh ye of little faith, BT just knock you out yah stumps.

    But X,
    I will give way to you Mak, TMW, Me and the rest that at the going price it is senseless to be buying anything back. However there is still the absolute need to have a useful representation in the market place for a government controlled entity to force Central Bank policy.

    Now there is one other thing that is being missed and that is that the Prime Minister’s biggest client in private practice is Clico B’dos whose interest in the BNB will surely be boosted now that government has exposed its interest in regaining control. If my name was David, I would be seeking to change it at this time

    Denny Crane

  26. anonymous Avatar
    anonymous

    “Sandford’s businesses were ‘well run’ until last month…” And there you have it. Tek dah Straight Talk, oh ye of little faith, BT just knock you out yah stumps.

    Bush Tea is talking shite as usual.
    Sandford did not go out of buisness because his buisness was poorly run. The SEC in the USA seeking to screw the man for doing less than the American Government does with the so called Federal Reserve, which is neither “Federal” or a “Reserve.” Its just that few people know that.

    It is a fallacy that there is in the USA an institution whereby there is a reserve of money of any kind. When the US government want money they print money and fool the people. How is that worse than Stanford “changeing” some money here and there, and inviting a few folk to invest in some financial instruments?

  27. Tell me Why Avatar
    Tell me Why

    @ David
    Also what happens to the minority holdings of NIS in BNB?
    ………………………………………………………
    That minority holding could be sold and invested in the new bank along with the transfer of government finances.

    Secondly, I would not wait for a consortium to fund any takeover of BNB. Individuals and big businesses are shying away from investing in the banking industry due to massive foreclosures that are leaving banks with unsaleable assets, reduced loan portfolios, thus causing a reduction in collectibles which are causing cash flow problems. So the PM will be only be Wishing in Vain for investors to come forward.

  28. Gear Box Avatar
    Gear Box

    It tek four days to move heavy duty construction equipment from a site, but it gun tek four seasons to bring it back

    AAAAAAAAAAAAghhhhhhhhh

  29. livinginbarbados Avatar
    livinginbarbados

    BNB’s own website (let’s give them the benefit of the doubt) shows the bank’s history. It ran into serious problems in the 1990s (bad loans, low capital, put simply). A decade later, after transferring loan portfolio, making provisions/write offs, getting government bonds, and reorganizing operations, profitability had returned and capital base had been increased. It was then a viable bank. The decision to sell it in 2003 was political and commercial (government owned means it’s hard to separate those two things) and its sale was a source of needed foreign exchange. From what I read and hear, Bajans at the time of the sale were not interested or capable of buying the bank. Is the situation really different now? You can’t force a horse to drink water. In any event, the present majority owners say they have no interest in selling the bank.

    The PM in his July 2008 Budget had planned to sell the government’s remaining stake in the bank to provide money to develop QEH. What has changed?

  30. David Avatar
    David

    Barbadians who have followed the fortunes of the BNB and even before the financial entities which were merged to form the BNB do not have to read the PR piece on its website to know what occurred. BNB’s balance sheet had to be restructured yes but we also must acknowledge that BNB had accumulated some serious debt belonging to the sugar industry and other failed government projects. When the bank was sold much of this debt (toxic assets) had been removed which has allowed BNB to be a viable operation.

    On the matter of the sale Barbadians were offered a class of share but then and even know Barbadians have not reached the level of financial maturity to appreciate the importance of creating wealth via acquiring share holding in public companies. Prime Minister Arthur at the time would have been aware of the financial immaturity of Barbadians.

    The fact that government of the day had made it known that divesting in BNB was necessary to garner foreign exchange to pursue projects at the time was a discussion point (was it the Hilton project that the foreign exchange was used for?) When people use the argument that Barbadians did not buy BNB it shows a lack of understanding of how the issues were played out then as well as the make-up of the Bajan.

    Whether we are able to buy the shares to get control of BNB or not the debate at this time is healthy. The strategic importance of a bank owned by Barbadians and its influence on shaping financial products for Barbadians must be weighed versus others being allowed to do so. BU continue to follow the arguments foe and against with keen interest. Thanks to Bush Tea for the submission.

  31. Adrian Hinds Avatar
    Adrian Hinds

    (with) David:

    When people use the argument that Barbadians did not buy BNB it shows a lack of understanding of how the issues were played out then as well as the make-up of the Bajan.
    ———-

    ….and when that person is Dennis Jones and you factor in all of his other comments about Barbadians, you will see a common refrain. Nothing new.

    @Dennis Jones

    The PM in his July 2008 Budget had planned to sell the government’s remaining stake in the bank to provide money to develop QEH. What has changed?

    Nothing has change.
    BNB is still the Bank that Owen Arthur Sold.

    BNB is still the Bank that the vast majority of Barbadians wished were not sold.

    BNB is still the Bank that did not have to be sold.

  32. Adrian Hinds Avatar
    Adrian Hinds

    The intellectual dishonesty of the red shirt people is really laughable!

    For 14 years Owen Arthur never missed a beat in telling us that Sandiford and the DLP did us all a disservice in selling Governments majority shares in BET and Bartel to C&W, and we did not need him to tell us that. Today Barbadians are still peeved that a GoB continued the selling off with BNB, and we cannot get some, clearly partisan intellectuals to comment on this, but they have fast-forward to comment on the Current PM’s stated wish to see BNB back in Bajan ownership.

  33. John Avatar
    John

    David // February 28, 2009 at 7:43 am

    On the matter of the sale Barbadians were offered a class of share but then and even know Barbadians have not reached the level of financial maturity to appreciate the importance of creating wealth via acquiring share holding in public companies. Prime Minister Arthur at the time would have been aware of the financial immaturity of Barbadians.
    ++++++++++++++++++++++++++

    Bajans were and are several jumps ahead of Owen Arthur!!!

    He probably figured that out too and knew upfront there would be few takers of the share offer.

    Bajans simply do not trust all the mumbo jumbo about shares in companies as vehicles to build wealth and view them as vehicles to rip them off and run them over.

    Plantations, Cotton Factory Trade Confirmers are examples.

    Nothing to do with fianacial immaturity, just old fashioned Bajan common sense.

    I know a well established accountant/auditor from a top firm. He tells me he has no shares in Bajan Companies nor would he consider putting his money into them …… same logic, …. the system is corrupt …. no way he will lose his money this way!!

    Fix the system first.

    Let’s actually see the wrong doers brought to justice and held accountable.

    Maybe then Bajans might become interested in owning shares.

    The immaturity does not rest with Bajans, it rests with the system of checks and balances which is supposed to protect them.

    ……. we all know that, ….. Owen Arthur tooooo!!

  34. Adrian Hinds Avatar
    Adrian Hinds

    Build on credit union strength
    Published on: 3/1/09.

    by HALLY HAYNES

    [snip]

    In this regard, I want to advance the view that the Government of Barbados should consider working with the credit union movement, local businesses and Barbadians locally and abroad to establish a locally owned bank rather than seeking to raise more than US$300 million to purchase shares from Republic Bank Limited, which may not be willing to sell its majority shareholding in the Barbados National Bank.

    The credit union movement in Barbados has a documented record of successful lending and leadership in economic downturn periods, as was evident during the recession in the 1970s.

    Credit unions in Barbados contributed significantly to the early success of the Barbados National Bank when it was mandated by the then Government to place its statutory reserves within the Barbados National Bank and was advised to conduct all its financial affairs, that is deposits and loans, with the Barbados National Bank.

    Significant players

    Today, credit unions are significant players in the Barbados financial sector.

    As at the period ending October 31, 2008, membership in credit unions stood at 156 769 people, total assets were at $1 186 752 404, share capital at $223 566 833, reserves at $96 366 022 and investments at $103 299 287. Loans to members accounted for $941 803 549.

    It must be noted that under the Co-operative Societies Act, credit unions are mandated to have liquid assets of ten per cent of their total liabilities. In addition, its reserves should also be cash or cash equivalents.

    Since credit unions do not have a bank for credit unions or own a bank, these monies are deposited within the banking sector of Barbados which is wholly or partially controlled by non-Barbadian institutions.

    Given the phenomenal success of the credit union in Barbados and the current financial environment in Barbados and the region, we as a people need to build on the credit union cooperative model.

    Credit unions in Barbados have been able to provide quality service and products to its members. This has not gone unnoticed by the banking sector which in recent times has been adopting certain credit union lending principles.

    However, the credit union movement is limited to the services it can offer its members since it does not own a commercial bank.

    But if it owned a bank, it could offer its members and citizens far better service at better rates than currently exists in the marketplace. Customers or members would not have to wait for decisions to be made in Trinidad and Tobago or other jurisdictions; decisions would be made in Barbados in the interest of Barbadians.

    It must be noted that throughout the financial meltdown in the United States, credit unions are proving daily that they are the most viable financial system in America.

    It is my humble submission that the credit union movement would welcome the opportunity to sit at the table with Government and other interested Barbadian companies with a view to establishing a locally owned and operated bank that provides financial products and services for credit unions, businesses and Barbadians alike.

    I am sure that this new financial entity would be the jewel of the Government and people of Barbados.

    * Hally Haynes is a long-standing credit union director and management consultant.

    full article:
    http://www.nationnews.com/story/340187575674067.php

  35. BAFBFP Avatar
    BAFBFP

    Adrian Hinds
    Please step to the front of the class

  36. John Avatar
    John

    The Credit Union gives a depositer the right to call back for his/her money at any time.

    A shareholder in a company needs to find a buyer for his/her shares if he/she wants to get back his/her money pronto AND has to agree to a price.

    If the company is properly run shares can be a vehicle of wealth creation, but if things go south everybody knows there will be no one that will be held accountable and the net result will be they will be ripped off and run over.

    … it all depends who wants the company ….. and whose palm has been greased.

    This is the reality of Barbados.

  37. JC Avatar
    JC

    John

    Fair enough!

    I get your point!

  38. Adrian Hinds Avatar
    Adrian Hinds

    John what point are you making? Does it attempt to relate, in the form of a retort or compliment to the opinions of Hally Haynes as contained in the news extract i put up?

  39. John Avatar
    John

    Adrian

    It was not clear to me what point you were making when you introduced the article on the Credit Union movement.

    I am not sure the Credit Unions can be thought of as companies and the depositers as shareholders and was trying to verbalise it.

    If I were a depositer in the Credit Union I would be extremely concerned if the directors decided to take my money and invest it in shares in any company in Barbados, whether that company is a bank or a producer of animal feeds.

    I might let it go if the percentage of assets held as shares in companies was small, but I would still be concerned.

    Perhaps the $300 million (US?) to buy BNB shares may be a pin prick in the assets of the Credit Unions, but if it isn’t, I would tell the directors of the Credit Union to give it a pass, or move my money elsewhere.

    Please note I am not saying that I would not invest in any Barbadian Company!!

    It sounds like a contradiction in terms but if I were to invest, I would want to know every director and have played a significant part in his/her election, not a 0.5% part.

    … and I would want to know who the other shareholders are, and their track records.

    This is one of the reasons I think families play a major part in the creation of successful businesses.

    …. still, even the closest of families can go south.

    People are people.

  40. Adrian Hinds Avatar
    Adrian Hinds

    John i think you are clearly trying to confuse the thread. I see your comments as deliberately trying to pull down a good set of opinions by Hally Haynes. Any attempt by average Barbadians is met with the same or similar comments from you and other LIKE you. How long do you think you can continue to use fear and panic to keep us from doing what is right for us without imput and inclusion of the usual players? I gine an get my sweat on. I will deal with your submission when i return.

  41. John Avatar
    John

    Adrian Hinds // March 1, 2009 at 3:39 pm

    Any attempt by average Barbadians is met with the same or similar comments from you and other LIKE you.
    ++++++++++++++++++++++++++

    I am not clear what you mean by “any attempt”, …. you have not specifed what “any attempt” is.

    Does it refer to Hally Haynes’ opinions or to the success of the Credit Unions?

    Are you taking a leaf out of David’s book with the fear and panic admonition he issued for Mia?

  42. Elombe Avatar
    Elombe

    I agree with John. I would be concerned if my credit union were to buty shares in a bank; why not simply use it as now and support a locally owned bank?

  43. Straight talk Avatar
    Straight talk

    Elombe:

    Tell me a locally owned Bank, so I may use it.

  44. Straight talk Avatar
    Straight talk

    I understand what you are trying to say, but why are our successful Credit Unions being hamstrung by regulations favouring foreign entities?

  45. John Avatar
    John

    …. look at changing the regulations, why buy a bank.

  46. Adrian Hinds Avatar
    Adrian Hinds

    Hally Hanyes opinion was specific. Enter into a partnership with Government and other LOCAL persons, even bjans in the diaspora, to conceptualize and fund A NEW BANK. The credit Unions are currently force to do business with existing banks none of which are locally owned. The city of Bridgetown once owned valuable real estate opposite Heywood hotel and they sold it, a move that the usual players no doubt applauded. The playbook is the same no matter the morphed cicumstance it must undertake to adapt to differing situations that never the less has a basic intent and intended outcome. The enfranchizement of working class bajans without the the help and our inclusion of the dominant minority.

  47. David Avatar
    David

    The peoplecentric approach of the credit union separates it from a bank. We support the government paving the way for the credit union to play a greater role but we have a concern:

    The Registrar of Cooperatives resembles too much the office of Supervisor of insurance. The credit union has grown to over 1 billion in assets and continue to grow. Unfortunately the bigger it get means that they will attract the eye of the regulator.

  48. BAFBFP Avatar
    BAFBFP

    Elombe
    You worry me.

  49. BAFBFP Avatar
    BAFBFP

    The Credit Unions fund banks by deposits. They as such act as agents for these foreign owned entities. Where the f**k is the harm with a credit union “depositing” members funds into an entity which it owns? Wouldn’t this just mean paying $2,400 to register a new company and raising the barest minimum required by the appropriate legislation to start up a retail Bank, and through a process of continued investment and continually increasing the portions of Credit Union depositers’ funds, aim to quickly build up the asset size required to cover a significant portion of the credit union deposit liability?

  50. BAFBFP Avatar
    BAFBFP

    In any event if a bank fails like Sanford in Antigua other banks will step in to save the depositors asses. When a credit union fails… my God.

    But you hear Thompson just now? The Antiguan government had the option to step in and save Stanford depositors because they had control in a National Bank.

    John you buy a bank because the existing ones do not find taking on Nationalistic agendas particularly juicy.

The blogmaster invites you to join the discussion.

Trending

Discover more from Barbados Underground

Subscribe now to keep reading and get access to the full archive.

Continue reading