Hidden Agendas?

Submitted by Old Onions Bag
Financial Services Commission drops the hammer on credit unions

Financial Services Commission drops the hammer on credit unions

Latest move by Government through a directive coming from the Financial Services Commission (FSC), to curtail the credit unions as to where they can invest, has stirred up a hornets nest. Now investing for them is all but limited to commercial banks and government paper. Really now, how much money can be made with commercial banks, 2 % or  5% on fixed deposits if you are lucky? Can be liken to operating in a piggy bank environment, risk aversive for sure, but at what loss of possible profits?. All that’s left is government bonds and paper instruments. Such directives most probably  have been influenced by the Clico paviova, and a protectionist policy for investors, but could there be more, given that commercial banks’ interest in government bonds and instruments have declined considerably.

So why must the credit unions  always play whipping boy with obvious mollycoddle ? Must these institutions (peoples money) be always corralled to suit others agendas all the time? Why can’t the credit unions be allowed to grow as with most financial institutions, for one, like allowing them their own bank? Surely we could venture a guess, that commercial banks would see an exodus of the ‘peoples deposits’ to where, policies and interest rates and sharing of profits would be much more fertile.

Credit unions you are being served notice….bail bonders extraordinaire‘….

97 thoughts on “Hidden Agendas?

  1. Onions

    The problem is that the leadership of the credit union movement, like most other local non!-government institutions, have been infected and taken over by individuals who seem to elevate party politics, particularly DLP politics, above everything else. These leaders seem to have forgotten the purpose of credit unions. For example, Barry Hunte somehow, as Secretary of the credit-union league believed that it was his place to jump on Brasstacks to put a case for the Financial Services Commission. It was certainly not his business especially when he was wrong. But it appeared that he was doing his master’s biding. I would suggest to him and others like him to continue using their God-given abilities to progress and stop taking shortcuts through politics.

    • @Caswell

      BU has been following this issue with great interest. The FSC was established to regulate the credit unions and the insurance companies. Has anyone taken the time to find out why the FSC has issued the directive? Yes the credit unions want to earn all the income from placing money with institutions which pay higher interest rates than banks BUT why has the FSC issued the directive? What are they seeing that the credit unions are not?

  2. Caswell………….are the credit unions in Barbados subject to any international SEC rules and regulations.

  3. David

    I am of the view that the FSC is trying to force credit unions to buy government paper. Watch the sequence of events: the Central Bank reduced the minimum savings rate; the FSC directed credit unions to remove their funds from non-bank financial institutions; and Government went to Parliament to increase the amount of money that it could borrow. The former regulator allowed credit unions to invest in these institutions and only now that their successor is looking for money for Government do we have a problem. What are they going to do next, tell credit unions to rid themselves of their investment in Co-operators General Insurance.

  4. Well Well

    Credit unions are subject to the Co-operative Societies Act and the Financial Services Commission Act only.

  5. @Caswell

    Having posted your view we still do not have a position from the FSC which is suported by best practice? To compare the FSC to the Registrar of Cooperatives is a null argument because the reason we supposedly transitioned to the FSC was to improve the governance of credit unions.

    Let us answer the question, how many on BU have significant deposits with these non bank institutions?

    • David

      There was absolutely no need to transition from the Registrar of Co-operatives to improve governance of credit unions. That piece of foolish advice came from an overseas expert that was not aware of local conditions and because the advice came from overseas our clowns jumped on it, and in the process credit unions are going though a period where the regulator is learning the job as they are doing it. Regulation of credit unions is at an all time low while the FSC goes about its incompetent best. All that was required was to provide additional staff for the Registrar of Co-operatives.

  6. Speaking of hidden agendas. Check this out in todays newspapers

    Application for a Work Permit
    Having received no suitable applications for the advertised position of Vice President-Treasury,it is our intention to submit an application for a Work permit for a non-national to fill the post.

    Any persons wishing to object to this application should do so in writing to.

    The Chief Immigration Officer no later than May 27th 2013.

    SIMPSON INC. SIMPSON INC, Warrens St Michael.

  7. Caswell……………there lies your answer, if the credit unions put their funds in the banks they are then subject to international FITC rules and SEC regulations, as it is right now they are not, small wonder some ‘expert’ from outside is suggesting it. Have to find why they think it’s now necessary to do that, could it be that it will make it easier for government to access those funds?

  8. David, all banks worldwide are subject to regulations and rules under the banking system, if the money from credit unions are shifted to the banking system…………………

  9. The simple truth is …this DLP government has exhausted every available money hole they came into office and found and their chickens have now come home to roost. There is no more money available to them…….hence go after the “poor” people’s money they have saved in the credit unions.

    The banks are not buying up government paper, so they had to find alternate ways. The Minister of Finance came back empty handed and so he needs money to spend.

    The bright economist at the Central Bank is the mastermind behind this scam……. put all the money into banks…. the banks have limits that they can hold in cash… the banks will then be forced to buy government paper. I have investments in government paper, I intended to role it over if the BLP had won but not now and as soon it matures, I done with that, I have no confidence in this government. Big bunch of jackasses!

  10. @ Onions

    This is a very serious matter and goes right to the core of financial regulation.
    The dual regulatory system is in effect asking credit unions to put their Bds$1bn in foreign-owned banks. This creates an enormous risk to savers and questions the very legitimacy of the banking system.
    What is more, it comes a few months after a joint central bank/FSC so-called stress test of the financial system.
    It was bogus because retail banks are regulated and supervised in totally different ways to mutual societies.
    The only technical financial economic reasons for imposing such restrictions on credit unions would be for risk assessment or risk management reasons.
    But this was not the case when they carried out the stress tests.
    Further, what the Barbados economy badly needs is financial diversification, thus my call for a balance sheet retail bank.
    This was an opportunity for the government to order credit unions to set up a joint credit union bank, thereby diversifying the financing of SMEs and households.
    I will take up this economic ignorance in a later Notes, but the one thing to remember is that at a stroke they have added to government debt since the central bank is the lender of last resort and in that role is effective underwriter of all savings in Barbadian financial institutions, even if this is not spelt out by law.
    Once again it shows that academic knowledge of financial economics is not the same thing as the applied knowledge.

  11. Prodigal…………some people got what they prayed for, others are getting what they paid for, at least you know.

  12. @Well Well

    As far as BU is aware bank deposits in Barbados do not fall under FDIC.

    @Hal and Caswell

    Do you guys realise you have suggested that Cabinet through the MoF has instructed the FSC to direct credit unions to remove deposits from non bank institutions.

  13. @ David

    This is not a party issue, it is one about technical risk perception and risk management. Is the FSC/central bank not telling us something? Did they find flaws in the credit unions’ books when they carried out their stress tests?
    What is equally worrying is the deafening silence of the Opposition.
    What about our academics? I know of one Barbadian lawyer who works in a major North American regulatory body and it will be nice to hear his views, even if anonymously.
    This is not comedic incompetence, but the serious incompetence that comes from ignorance and a stubborn resistance to outside advice.
    Is the FSC going to tell foreign-owned banks how to invest their money? Why should the FSC, which regulates and supervises non-banks, encourage credit unions to put their money in banks, regulated and supervised by the central bank and out of the control of the FSC?
    By the way, the FDIC only insures US savings, and not all of them; so does the UK’s Financial Services Compensation Scheme and the Eurozone’s Trioka.
    Remember Cyprus?

    • If the FSC discovered a weakness in the non bank market should we expect that it would go public?

  14. David…….all the banks in Barbados are foreign owned, with the exception of Trinidad banks, the banks from North America would be governed by certain insurance rules…………………….

  15. See, I am being very careful with what i say, because i too was in the banking system and i know different laws can be interpreted in different ways.

  16. @ Well, Well

    With respect, I think you are wrong. The FDIC’s remit only covers US jurisdiction, although the US quite often thinks it controls the world.
    Remember Icesave and the problems the European countries had with Iceland.
    Last week I saw an interview with the president of Iceland and he poured scorn on any such idea.

  17. @ David

    Not at the same time. It should have organised a soft rescue, preferably the the good credit unions by forcing a merger on the troubled credit union.
    But it should have been signaled in the bogus stress report it published which we now know was probably a blatant lie, or the FSC is being hysterical.
    BU should publish all the names of the senior people on the FSC board, where the buck stops.
    Name and shame the culprits.

  18. Hal………….i did not suggest anything, i sent information for Caswell so he can form opinions on possibilities for the sudden decisions about moving credit union monies into the banking system, i was very specific about that.

  19. Hal…………you research would also have to be done to see if Canadian banks are using any of FDICs protocols. That is why i was very careful with the language i used, just reread what i wrote.

  20. @ Well, Well

    Canada has its own protection scheme, which doe snot cover branches or subsidiaries of Canadian-owned banks outside Canada.
    The jurisdiction the scheme operates in is responsible for its own protection.
    The difference is that in a fiscal and monetary (the US with 50 states) and the eurozone’s monetary union (17 states), protection can cross borders.
    Another of Caricom.

    • @Well Well

      Hal is correct, Barbados’ version of FDIC is BDIC:

      Does the Bank administer a Deposit Insurance Scheme?

      The Barbados Deposit Insurance Corporation (BDIC), established under the Deposit Insurance Act-29 of 2006, came into operation on June 8, 2007. The BDIC is administered by a Board, independent of the Central Bank of Barbados. The Bank is represented on the Board by the Governor and the Director of Bank Supervision.

      The deposit insurance initial contribution and premium was set at 0.05% of the insurable deposits held by the member during the calendar year preceding the calendar year for which the premium is payable.

      The Corporation manages the Deposit Insurance Fund, which was financed by an initial contribution and annual premiums from all member institutions. At present they are fourteen members of the Fund, six (6) commercial banks and eight (8) deposit taking financial institutions governed by the Financial Institutions Act. The Central Bank of Barbados matched the
      initial contribution payable by all member institutions.

      The BDIC guarantees insurance coverage of up to $25,000 for depositors of commercial banks and other deposit taking financial institutions licensed under the Financial Institutions Act.

      The financial climate in Barbados is very sound however the establishment of this Fund is designed to extend the financial sector safety net and contribute to the maintenance of public confidence in deposit taking institutions in the financial sector.


  21. Bajans are knowledgeable about investment markets and accounting
    Offshore Bankers know all about FDIC and SEC
    Harder Than You Think

  22. From the Central Bank of Barbados down to finance houses in this country, are operating based on substantially wholly deficient false fictitious fraudulent political financial ideologies, philosophies and psychologies that have their roots in Western Finance.

    Take, for instance, interest rates.

    Interest rates in the context of Barbados’ and much of the world’s political financial institutional environments suggest that money can be used to make money itself and that money can be used to cost money.

    This is a most wicked abhorrent false fraudulent fictitious ideology, philosophy and psychology.

    The fact is that money cannot be used to make money nor can be used to cost money ( Part of one of the twelve (12) fundamental principles concerning money and its uses in Barbados).

    By an individual in Barbados putting a ten dollar bill in any financial institution will never mean that it will grow into fifteen dollars in any amount of time, so that what did not happen in that sense, will enable the individual to get fifteen dollars from the financial institution at the time.

    By a financial institution giving a credit transfer to the same individual of a ten dollar bill will never mean that it will transform into fifteen dollars by a given time as a result of what did not happen in that case, such that it will impose a duty on the receiver of the original amount to give to the financial institution fifteen dollars at a certain time.

    Indeed, these are kinds of fundamental truths that are being violated or circumvented daily weekly by the government and all financial institutions in Barbados including credit unions, to a greater extent, and by the relevant depositors/so-called borrowers in this country, to a lesser extent.

    By the government and all financial institutions continuing with interest rates regimes in this land will have surely meant that they will have been contributing to this very staggeringly high real actual cost of use of money in Barbados at this stage.

    This skyrocketing real actual cost of use of money has not only at this juncture been helping in the realisation of the dimunition of overall nominal incomes, payments, and transfers in the country and the dropping out of many of them, but has also been contributing to severe decreases in the MONEY TURN OVER RATE among the national commercial business sectors of this country.

    Such a rate is estimated by the PDC to have been brought down to a scandalous shocking 55 per cent at this juncture from about 70 something per cent in 2007.

    With the coming to office in the future of a people centered progressive coalitional government of which the PDC will be a part of, there shall be the Abolition of Interest Rates in this country and the outlawing of financial institutions and persons and other entities entering into agreements that involve these obnoxious interest rates.


  23. David………..Caswell should have an idea, that was my point, you do not shift money around unless it’s completely covered under some guarantee, he would have to figure out the whys and wherefores of that particular decision.

  24. @ PDC
    If I agreed to lend you $10 on the basis that you repaid me $15 when the debt was due in 6 months time, and you repaid, that means I will have made interest on my loan.
    Therefore money can be used to make money. QED

  25. Sometime last year Caswell was kicking up a storm about fraudulent activities at a particular Credit Union.

    I am a Credit Union member and want all of the security put in place to prevent any heartbreaks like a Trade Confirmers or CLICO happening again.

    • Clone

      The FSC is not doing anything about fraudulent behaviour at credit unions. You can’t get them to ask even if you beg them and provide all the evidence. All they really seem to be interested in is forcing credit unions to help finance the Government. Thieving is widespread at that particular credit union but their officers have political protection.

  26. @ David
    “…..why has the FSC issued the directive? What are they seeing that the credit unions are not?”
    David you have this quaint way of appearing not to know that these institutions are nothing but a collection of lackies whose capabilities of original thought are generally limited to how they plan to spend the monthly stipend gained for ” being on the board”.

    They issued the directive because the minister (a) Told them to..
    (B) forced them to… Or (C) appeared to want them to…

    …and the minister did it because he NEEDS to appear to be doing SOME sh*te…..and this seems like a good crap.

    Credit Unions are easy prey…..bunch of passive morons with MUCH more dollars than sense, most with NO idea of the POWER at their disposal, and most tellingly, led by some of the most retarded imbeciles on this side of the Jenkins fence.

    A drowning man grabbing at straws…

    Unlike banks and practically ALL other types of institutions, Credit Unions are OPEN AND TRANSPARENT to all its members. All of them have the RIGHT to access to all its business information.

    IDEAL INVESTMENT INSTITUTIONS….which is exactly what we need at this time with BILLIONS in savings needing to be put to productive use.

    The ONLY POSSIBLE weakness is that members may not show interest in their business. If this happens and they lose their monies ONLY THEY are to blame.
    ….compare this with CLICO….any bank, or any other business.

    The FSC has NO BUSINESS being involved in Cooperatives. The arrangement of a fully empowered Registrar, which WORKED successfully FOR BARBADOS FOR DECADES was another excellent arrangement that was changed by idiot politicians who have been destroying this place through their ignorance, stupidity and greed.

    …neither the FSC nor the dotish Credit unions people are seeing clearly….both groping blindly in the dark….and our savings will remain uselessly buried in the crooked banks while unemployment rises….

  27. The majority of Banks in Barbados are Canadian owned. Is that where the credit union money is going to be placed?

    Interesting times ahead.

  28. Don’t you get it Clone? There is no better security than the FACT that nothing can be hidden from the Caswells of the credit Unions?

    If a Caswell was able to raise similar concerns at CLICO after the first million was misused or stolen there would now be no CLICO mess….

    Even now we can’t find out what happened at CLICO …just that hundreds of millions are missing….

  29. LOL
    Caswell is so paranoid that he is even known to accuse people who he is convinced “may carry away something from the credit union “…

    • @Bush Tea

      The FSC Act gives the credit unions 30 days after any decision to appear to a Tribunal.

  30. Credit Union members need to take a hands on approach and make sure this money is fully covered, and not just $25,000 of it, you do not want to hear the DLP sheeple bleating if anything goes wrong with the depositors money, like i have been hearing the most ignorant of them like AC bleating about the CLICO scam…..”oh, the policyholders should know it was a risk”. People have to wake up and don’t just accept the words of ministers, ask questions………

  31. @ David
    …and how many credit union “leaders” would you guess even understand the issues and /or care enough to be bothered to question any such thing?
    The leadership of the Credit Union has been disrupted and fragmented by the enforcement of a system of rotation among the movement based on term limits so that we now have a permanent situation of ‘trainees’ in leadership positions.

    Just when one of them starts to understand the issues and begins to look like a possible leader, the time limit is up and a new trainee starts the process all over.
    This is to ensure that they never realize their true potential….. perhaps our politicians are not as stupid as Bushie makes them out to be…. If the Credit Unions had true leadership the politicians could quickly be brought to heel… 59,000 votes and $ 1 Billion can be quite a whip.
    The other way is for Caswell to get going with BUP….

  32. St. George’s Dragon,

    Let us not let this discourse – call it that – degenerate into the trading of worded insults.

    We are on this BU blog to engage in serious analysis and exposition of the facts and theories related to so many things that we are aware of in this country.

    We do not wish to waste time on this blog, via diversions into trivia and foolishness.

    Anyhow, to deal with your scenario.

    We have to ask you: what premises are you using to support your hypothesis that money was made??

    Was this part of your income – expressed by money – that you lent out?? if it was, then you were entitled to that portion of your income that you lent out – not any more!! Were it a financial institution, it would have been different, since what the financial institution would have been money transferring out to anybody, would not have been the incomes or payments or transfers that belong to it, but the money that belong to the people.

    In such cases of financial institutions, or in your scenario where you are looking at the interest aspect, could there have been really objectively a money cost/benefit for using the money?? when clearly there is none between the different monies?? where there is no money cost/benefit arising from such money usage??

    Well, the truth is that generally when there has been an agreement to give some unconnected amount higher or lower than that that was given originally, it is – even though the agreement is considered by the parties to it to be important – it is not it – the agreement – that gave rise to the money being given in the first place and the other money in the second place – including the interest – but it is the different and far-reaching actions involving the cost of/ use of money leading up to the giving of the amount of money.

    Anyhow, back to your scenario, was the money that was given to you inclusive of the exact bills or coins as the first ones??

    If yes, then where did the other ones come from??

    If no, then where did all those relevant monies come from??

    If yes and no, then did they come out of the same process of passing on money??

    Is there therefore a real difference between where some monies came out from and where all came out from??

    Was use of them passed on to you from other souls??

    Is not such passing around of the use of money – whatever the numbers – part of the money circulation process?

    Did those souls see the money that was being passed on to you as your making money?? Or did they see money being passed on to you and your having future use of money that is already there, rather than seeing it as your making money ??

    Was there any relationship between the money that was lent by you and the money that was given to you?? If yes, then it speaks to the same money being used and circulated.

    If no, then it speaks to their being no relationship between the two sets of money.

    Is there at all, though, any material or other relationships between any bill or coin, and any other bills or coins whenever they are being used??

    If yes, then it is only to such an extent that with each bill or coin there is for each the material that comprises them.

    If no, then there could never ever be any thing such as money debt since what is only in existence is the material that makes up the money and since money is not capable of being owned by individuals, is public property, is not subject to costing individuals for owning it, and is identical in so far as one is dealing with particular denominations, using it cannot give rise to individual debt claims against it.


  33. If what has been deliberated here(unable to be present) is true…..we in potta. Have some not heard of the dominio effect?… more simply.. the ole addage.. “puttin all your eggs in one basket”…why if the credit unions had all their monies in Govt bonds and the peoples (alike NIS Fund) now ONLY savings for a rainy day… had to meet some disasterous fumble….somebody unable to meet their committments …..what a messy disarray would ensue..

  34. @ David…> typo

    FSC per the intro…..is D Financial Services Commission….( although that is proving to be a real Fairy)..Lol

  35. Old Onions……………what really sickens me, are the sheeple like acSLEAZE, who if i had my way would be tightly fitted into handcuffs and shackles for her acSLEAZINESS, people like her with the limited intellectual acuity of vicious crabs would knowingly aid and abet the financial victimization of her own people by the present administration, not unlike the CLICO scam, just so she can fly party colors and boast, but later, soundly blame the victims, just like she did with the CLICO scam………credit union members need to take a stance.

  36. @ well Well
    Problem with the credit unions as Caswell rightly states…too much political lackeyism….Govt been able to worn around many of these high flyer to suit their end too EZ. Now we having it also with some of these trade unions…case to point NUPW…Is people like Hon Maxine McClean who should be there to shout..affa all …she owes the credit union movement a lil historical TLC…lol

  37. Old Onions…………..McClean is nothing but political window dressing, she has no power except what she is prompted to say.

  38. Cannot say, however, Caswells analysis makes most logic….
    I am of the view that the FSC is trying to force credit unions to buy government paper. Watch the sequence of events: the Central Bank reduced the minimum savings rate; the FSC directed credit unions to remove their funds from non-bank financial institutions; and Government went to Parliament to increase the amount of money that it could borrow

  39. Seems like trouble in the wings here. Why what is the position with the NIS Fund? This is definitely a sign for concern.

  40. Seems like trouble in the wings here
    LOL real hard @ Polly.
    That is like someone who recently exclaimed to the bushman ” “….Bush! um is half de year done already…”

    Where have you been Polly? Trouble has been here for some time now…. What is about to come is better described as “cat piss and pepper….”

  41. onions,
    Boy, the likes of ac, TTP and CCC gave you, miller and I hell after they said “we win”. Now it seems as if all hell is beginning to break loose. I knew the government was in deeper trouble when it was revealed that he moved 100 million dollars out of the severance fund and then had the gall to curse out the Director of the NIS telling him he had better tow the line. (Sinckler seem to forget that politicians come and go).

    Now today, Caswell made another revelation on Brasstacks………since their plan was blown out of the water last week, it seems as if they have come up with another plan……when temporary officers time expired, they are not renewing the letters of appointments. This government really think they are bright!

    I remember some fraud came on BU telling lies that she was assaulted at the BLP’s Haggatt Hall do and said that her dad told her that is how the BLP operates and that she went to the DLP do and was not assaulted and therefore she was going to vote DLP because she wanted to keep her job. Hope she is not one of these whose contracts are not being renewed.

    If so, poetic justice wont you say for telling bold faced lies!

  42. Prodi

    Like they say ..when the chickens come home to roost…..shoite duz be left in D morning. When I hear the DLp edge out the Buy- elections by 16 –14 I went on the blog and tell ac and CC “keep um….an elections result deserving a lose” Now hopefully they see why.

  43. Old Onions………….as i said in my posts this morning acSLEAZE and the crowd of sheeple know exactly what is happening, they more than likely think it will be a huge surprise and triumph, as i said, i would like to ready some tight handcuffs and shackles for them.

  44. @ Carson + Ac

    We know you out there reading….can’t take the licks? …come in here and represent your people

  45. so Casell was truthful after all? i did say in an another blog that i knew he had his facts…now that jackasses that chose to bury their heads in the sand and listen to utter stupid ads just before elections are reaping the whirlwind. this government needs to be removed from office before the end of the year. they do not know what they are doing and it is now showing. can you business men, opposition party someone, anyone bring a NO CONFIDENCE motion against these clowns and let us return to the voting booths – we will have a totally different result, all the vote buying will not help them… this situation is getting frightening…my son just returned home from Europe, my daughter have just completed her degree, i am now on the verge of flying out with them but i feel compelled to stay, it is still a beautiful island…where is Mia Mottley?

  46. @ ac
    If Jazzy J doan keep he arse quiet…dem parkinson folk gine BBQ E…he ent up road view…up dey more like vietman…J boi do like poodle ..quix

  47. @Caswell

    r u sure cob was given a directive by fsc and if ur answer is in the affirmative, can u place a copy of the letter on the blog. If a letter was written, was it in relation to an audit done?

    • Newblood

      I am absolutely certain that the FSC gave a directive to COB. I cannot place the copy of the letter on the blog because it came into my possession as a member of the Supervisory Committee: it did not fall off of a truck as most of my other documents do. The letter was written to COB, according to the FSC, on March 12, 2013, as a result of the financial information that all credit unions are required to report to the FSC on a quarterly basis.

      According to the FSC, they made the discovery that COB was not in compliance from the financials that were submitted on March 7, 2013. What is strange is that this information has been sent to the FSC on a quarterly basis, without fail, from the inception of the FSC and they never noticed before. It is also strange that the matter only came to their attention when Government is scrounging around for money.

  48. Newblood

    Time you sleeze balls stop playing the semantics game and like OAS said…”awake from denial”…what are you sayin..that no such directive exist from Govt? …ac like you find a new moniker friend…DLP in a boiling caudron and can’t find no answers…..should have left this one alone..tief a bait dem.

  49. onion no comment from Owen on the raging war in and out of court between Payne and Hinckson. They are his fellow MP’s in Parliament the highest decision making body in the land not two year olds bickering over a shirley biscuit. Could it be he is in denial on the BLP implosion?

    Mia and Cynthia were conspicuous from Owen’s latest rant. Wife beater though made his presnce known.

    No Owen its not Barbados darkest hour its the BLP thats in a dark place.

  50. @ Caswell

    It is serious. It either goes to the root of FSC competence as a regulator, or to the risk management and governance of the COB.
    More details should be put in the public domain, either by the COB or the FSC.

    • Hal

      It goes to the political interference in what is supposed to be an independent body. The non-bank financial institutions where credit unions invest their funds are all regulated and have been given clean bills of health by the Central Bank of Barbados. There was no problem with these investments by the Registrar of Co-operatives, the former regulator, or indeed the FSC before March 7, 2013. What has change? Did the FSC suddenly loose confidence in the Central Bank, and if so; what does the FSC know about the Central Bank that the rest of us don’t?

  51. @ Caswell

    I agree and it shows what lengths this government will go to to steal money from ordinary people, but they lack finesse.
    This form of regulation is similar to the choke and rob muggers stealing gold from tourists.
    The next big scandal is going to be the central bank defaulting on retail investors who have invested in gilts.
    Mark my words.

  52. Caswell…………….have you been able to form any opinions yet on why as much as 1 billion dollars of credit union members money runs the risk of being moved to foreign owned banks in Bim?

  53. @Caswell

    To be clear about what you are intimating. The FSC has been influenced to issue a directive to transfer deposits to banks because of some scheme to force credit unions to by government treasuries. Is this correct?

    Then the follow up concern is did the FSC Sir Frank Alleyne led Board approve?

    BU’s real concern is that the FSC has the right as regulator to direct those for which it has oversight. Did we not express outrage when the Supervisor of Insurance failed to exercise the right of the office under the Act. Could it be the FSC has seen a deterioration in the balance Sheets of non bank entities in Barbados? You are on record on BU being highly critical of Capita.

    • The FSC and the Sir Frank led board is one and the same.

      The credit unions have been allowed to make these investments for years by both the FSC and the Registrar of Co-operatives without any problems. Now that Government wants money, it is a problem. I am suggesting that there is more in the mortar than the pestle. I believe that this scheme is a ploy to force credit unions to help finance Government.

      You are correct, I have been critical of Capita in the past and will continue to do so but the FSC is not only giving the directive in relation to Capita.

      What I don’t understand is will the directive apply to the Central Fund Facility Trust which was set up by credit unions to assist credit unions if one of them finds itself in difficulty. The CFF is not a bank.

  54. @Caswell

    You concern is noted BUT because credit unions have been allowed over the years to deposit at will in non bank institutions does not logically support your argument that it must continue. The financial market post 2008 has changed not just because of CLICO by the declining economic situation.

    The credit unions need to exert their right to get a evidenced based response to the reason for the decision.

  55. I am reliably informed that this is not going down well with some members of the credit unions (esp.large ones)….as a matter of fact …some have decided to fight this ‘tooth and nail’ even to the point of the Law Courts,… the suggestion is who will be paying for those broken fixed deposits contracts, that are already entered into?….some as long as 25 yrs.

  56. The silence is deafening. Credit unions must speak out. If the regulator gets away with this this time they will come again.
    Look at how they raid the NIS fund.

  57. @Hal Austin | May 28, 2013 at 10:47 AM |

    “I agree and it shows what lengths this government will go to to steal money from ordinary people, but they lack finesse.
    This form of regulation is similar to the choke and rob muggers stealing gold from tourists.
    The next big scandal is going to be the central bank defaulting on retail investors who have invested in gilts.
    Mark my words.”

    Article in Toronto Globe and Mail today “As Valeant’s profile rises, tax avoidance will raise ire”


    A bit off topic, but eventually the loss of tax revenue from the offshore industry (Valeant/Biovail/Melnyk et al) will leave the Government with a huge hole in its revenue/cash flow sources, and increase the need to “steal money form the ordinary people”

  58. Caswell……….what a friend of mine alluded to today is that the credit unions will be forced to keep their money in the banking system and none of it can be invested outside of Barbados, whatever that means, maybe you have a handle on that.

  59. Caswell,

    As reported in the Nation, the FSC issued a written directive to credit unions advising that they must comply with the Section of the Act which restricts certain investments to 10% of the statutory reserve.

    The restriction on deposits is a different issue and hangs on the interpretation of the phrase ” a bank licensed under the Financial Institutions Act”. I do not believe that the FSC has issued any written directive on the matter of deposits held by credit unions, but maybe they wrote only to COB. Is that the case? What is the whole truth Caswell?

    Again as reported in the Nation, the President of the credit union League said that the FSC is working with them to get the matter resolved, perhaps by having the legislation amended.

  60. hello | May 28, 2013 at 9:40 AM |

    onions you running from this post?

    onion no comment from Owen on the raging war in and out of court between Payne and Hinckson. They are his fellow MP’s in Parliament the highest decision making body in the land not two year olds bickering over a shirley biscuit. Could it be he is in denial on the BLP implosion?

    Mia and Cynthia were conspicuous in their absence from Owen’s latest rant. Wife beater on the other hand made his presnce known.

    No Owen its not Barbados darkest hour its the BLP thats in a dark place.

  61. the govt injected 11million dollars in the economy yet the BLP yardfowls say the govt not doing nutting for the economy.. they would prefer to give 90million to the people to increased the import bill rather than to spread 11million across several countries which in return would bring in foreign exchange and not add another imillion to the import bill.. the govt plans a meeting to have talks about the economy and them mad .mad mad mad……even jeff broomes not so mad anymore wunna need to take a page out of jeff broomes book …Jeff Broomes wher are u the BLP need your help in recovery.. Please send them a memo ……

    • Newblood

      You asked

      Why didn’t the other credit unions get such a letter?

      You are assuming that they didn’t. The FSC addressed a similar letter dated March 14, 2013 that I have in my possession to: “All Registered Credit Union Entities”

      Please speak about what you know and do not try to defend the indefensible.


  62. Caswell,

    Does the March 14, 2013 letter from the FSC, addressed to all registered credit unions, mention anything about deposits?

  63. @Caswell
    u shold recognize by now that i ask questions or make staments to evoke repsonse, let me say to u, i saw the letter and the relevant sections of the act that was referenced. Amen

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