Gov't to bailout CLICO, British American and CIB

[Redman]

This AM on 95.5 I heard an advertisment for fund holders in the CL fund family to call CBTT for settlement.
Why in heavens name are they paying off MUTUAL FUND INVESTORS when they are yet to make a commitment on the EFPA holders..


This makes no sense

Later

[edyle]

This AM on 95.5 I heard an advertisment for fund holders in the CL fund family to call CBTT for settlement.
Why in heavens name are they paying off MUTUAL FUND INVESTORS when they are yet to make a commitment on the EFPA holders..


This makes no sense

Later

Maybe the white collar criminals on this side of the Caribbean Sea have picked up a few tricks from the Bailout Criminals up north?

[Redman]

Maybe the white collar criminals on this side of the Caribbean Sea have picked up a few tricks from the Bailout Criminals up north?

This is what happens when you send a set of bankers-(Yetming,and Holder) to handle the issue-of wrapping up CL when for most of their career their banks lost deposits to the EFPA-forcing the banks to pay higher rates to keep deposits.

Like a 7-10% spread isnt enough.

Thats like asking the wife to take care of the outside woman after an accident.

But Dookeran is proving himself to be a failure or a madman daily so I guess its par for the course.

SOMEBODY SHOULD FIND OUT HOW MUCH INTEREST WINSTON HAS IN THE SHARES OF LOCAL BANKS.
I was made to understand that he ranking.

Later

[greall]

Well...it is time to stick it to the EFPA holders including some of those credit unions scrambling to put their balance sheets in order.

Greg

[gajie]

http://www.trinidadexpress.com/news/...126048193.html

[BW]

http://www.trinidadexpress.com/news/...126048193.html

Judge orders CLICO to pay policyholders $59m
By Denyse Renne Story Created: Jul 22, 2011 at 11:43 PM ECT
Story Updated: Jul 22, 2011 at 11:43 PM ECT

It was victory yesterday for six CLICO Executive Flexible Premium Annuity (EFPA) policyholders as High Court Judge Maureen Rajnauth-Lee yesterday ordered the local insurance giant to repay approximately $58.7 million to them.

In a 51-page ruling delivered yesterday afternoon, Rajnauth-Lee also ordered that legal costs of more than $1 million also be paid.

[BW]

http://newsday.co.tt/business/0,145058.html

CLICO pays out millions to two regional banks
By JADA LOUTOO Friday, August 5 2011

INSURANCE giant, Colonial Life Insurance Company (Trinidad) Limited (CLICO) has paid out hefty sums — amounting to millions — to two regional banks, after a default judgment was entered against the company in the local courts.

CLICO had been taken to court by the Bank of Nevis (BN) and Bank of Nevis International (BNI) Limited for the full repayment of all outstanding principal, and interest payments.

Both banks held Executive Flexible Premium Annuity policies.

[Aurea]

Ah see and read this first thing this morning - Duprey boi, yuh not easy!

http://www.trinidadexpress.com/news/...130326203.html

Aurea

[vaio]

there is a lot more to come out!

[kemist]

at the end of the day, are they still goin to have to pay policyholders using taxpayers' money?

[greall]

Mais oui...

Greg

[Redman]

The policy holders are not to blame.

These were approved policies by the CBTT and SOI
How is it that the regulatory bodies allowed this type of management to continue for so long.

If it is accepted that Govt took the role of regulation for the protection of its citizens,and by action and inaction allowed an insurance product to be sold for years with an implicit GOTT and explicit Corporate guarantee of principal return-HOW IS IT THAT THE POLICY HOLDERS ARE BEING VICTIMISED WHILE SHAREHOLDERS,CIB DEPOSITORS AND THE MUTUAL FUND OWNERS HAVE BEEN MADE WHOLE????????????????????????????


Later

[miktay]

There iz enuf blame 2 go around here...

Not only Duprey and his advisors but also The Min of Finance, the auditors, the soi and gov of the central bank...all stood by while thiz unfolded...

Unless they find clear evidence of wrongdoing...they will not be able to pin this on any one person or organization...

This wuz a systemic breakdown...

[miktay]

2009... Finally...

Now how about 2010?

http://www.trinidadexpress.com/busin...138017678.html

In its first published financial statements in several years, collapsed insurance giant Colonial Life (CLICO) has presented a balance sheet for 2009 ravaged by massive liabilities of $24.5 billion and a 34 per cent decline in income.
In the company's consolidated financial statements for December 31, 2009, current CLICO chairman Gerald Yetming has said the company was finally in a position to present financial statements after "several challenging years".
CLICO's 2009 operating results "present a grim picture indeed as the board and management team grappled with the nonperformance of related party investments and the withdrawal demands of clients holding short-term investment and mutual fund products."
Former CL Financial chairman Lawrence Duprey was forced to approach the then-PNM government in January 2009 after corporate and private sector clients demanded hundreds of millions of dollars back in short-term investments with CLICO.

[Redman]

Dey will have to buss again.

Because,2009 would be the bottom for commodity prices.Soon after the collapse.
Income would decline because oil hit all time highs in 2008.

I wonder if 2010 +2011 books would support this govts position so easily.

Later

[Redman]

http://www.guardian.co.tt/business-g...co-audit-legal




This is interesting because the EFPAs were deemed to be insurance contract liabilities by the Supervisor of Insurance and its successor regulator, the Central Bank of Trinidad and Tobago, for at least 15 years. It is also noteworthy that the former administration went to Parliament in February 2009 to amend the insurance legislation to ensure that the EFPAs were properly defined as being insurance contracts. It is, therefore, of dubious legality for the current management and directors of Clico, by some magical fiat, to redefine the EFPAs as investment contract liabilities when 15 years of practice and an amendment to the insurance legislation would indicate otherwise. This would seem to be an example of extreme bad faith by the Government in its treatment of the holders of EFPAs and would seem to add to the ammunition in the various lawsuits that have been brought against the Government for its handling of this matter;



This is a convenient rape of the policy holders -who would represent the savings class of TnT

Tell me how the next financial instrument will be dealt with???
-Govt has reneged on Insurance and Pension guarantees.

precedent to step aside from financial commitments has been set.


Later

[miktay]

Wither our Eastern Caribbean brethren....

By Clive Bacchus
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St. Kitts and Nevis (WINN):* Recent comments by leaders of the OECS have placed the controversial issue of compensation for the multi- million CLICO, British American (BAICO) financial crash, back in the headlines.
*
St. Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves, Antigua and Barbuda’s Prime Minister Baldwin Spencer and St. Lucia’s Prime Minister Dr. Kenny Anthony have all called for a regional approach to dealing with the loss of close to EC$2 billion in the Eastern Caribbean Currency Union.
*
Speaking to the issue Wednesday, St. Kitts and Nevis Prime Minister Dr. Denzil Douglas said it was always the contention of the OECS that the CLICO BAICO problem was a regional issue.* Dr. Douglas insisted that CARICOM leaders must seek to resolve the issue and not just leave the OECS to 'carry the bag.'
*
Meanwhile the Prime Minister did not give an exact figure for the losses suffered in St Kitts and Nevis but said customers were more affected by BAICO than CLICO.*
*
Asked whether OECS governments were contemplating action against fraudulent or improper financial transactions that were multi-territorial in nature the Prime Minister said wrongdoers would have to account for their actions.
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Meanwhile the Chairman of the OECS Dr Kenny Anthony reiterated Wednesday that the issue of CLICO could not be resolved without bringing all governments into the picture.
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"This means that the government of Barbados needs to bring the governments of the OECS into its trust. They need to say to the OECS that we are thinking of going in this direction to deal with this issue,” Dr. Anthony said.
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He added that equally Trinidad and Tobago could not ignore its responsibilities to the OECS, noting that CLICO is a Trinidad creation that conducted business in the OECS.
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The Antigua Observer newspaper reports that Dr. Gonsalves and Mr. Spencer warned of implications for the regional integration movement as a result of the financial problems associated with the collapse of CLICO and its sister company, the British American Insurance Company (BAICO).
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Dr. Gonsalves said the situation could “wreck” CARICOM, while Spencer has described it as the worst thing to hit his country since the Allen Stanford debacle unfolded in 2009.
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He said put another way, the total exposure amounted to 16 per cent GDP for ECCU countries and that it also translated into, “serious damage to a lot of people’s lives” and “a new species of poverty” known as “gentile poverty” that has enveloped the region as a consequence of the insurance debacle.
*
Gonsalves said, “If countries, for instance Trinidad, in the case of CLICO Trinidad and British American and Barbados, in the case of CLICO Barbados, don’t come up to the plate and address this matter efficaciously, where are we going in CARICOM?”* (March 2, 2012)

http://www.winnfm.com/news2.asp?NewsID=8282

[Redman]

They dam well withering all right.


Later

[miktay]

Yep. Withering up 2 T&T and her 'deep' pockets under the guise of integration.

[miktay]

Bdos ent outta the woods...

(Barbados Nation) How the CLICO issue will impact on Barbados’ treasury has Standard & Poor’s (S&P) worried.

The Wall Street credit rating giant says that as the CLICO drama unfolds and the Government and Opposition focus attention on a possible solution to the crisis, they are keeping a keen eye not only on Barbados and Trinidad and Tobago, but the rest of the Eastern Caribbean as well.

Richard Francis, director of S&P’s Sovereign Ratings Group, told the WEEKEND NATION in New York that whether it was the Barbados Government’s plans for the policyholders, or the Opposition Barbados Labour Party’s recent proposal about the use of the tax system to aid individual investors, the issue the Wall Street credit rating giant is very concerned about is the “contingent liability” a resolution would impose on Barbados’ Treasury.

“When the revelation about CLICO first came out, obviously we contacted the governments in the region, including Trinidad and Tobago,” Francis said. We actually had a credit watch on Trinidad and Tobago because of the possible contingent liability. Once that was quantified and given the solid standing of the government of Trinidad we actually moved back to stable for Trinidad”.

http://www.stabroeknews.com/2012/new...over-barbados/

[miktay]

Dup

[miktay]

PIIGS arent the only countries looking 4a lil bailout money...

Spreken sie deutshe?

St Lucia Prime Minister Dr Ralph Gonsalves on Monday said insurance laws in Trinidad and Tobago contravene the Caribbean Community (CARICOM) treaty and allow the oil rich twin island republic to treat its nationals favourably following the collapse of Colonial life Insurance Company (CLICO) and subsidiary, British American Insurance Co. Ltd (BAICO).

Gonsalves told Parliament that his administration believes all policyholders affected by the collapse of the two companies should have been treated "in precisely the same manner in respect of CLICO-Trinidad".
"This is not an issue of a negotiation. This is an issue of a juridical responsibility as we see it," he said in response to a question from Opposition Leader Arnhim Eustace.
"If I might just say this first of all, widely, a number of institutions have had investment policies, annuities with CLICO-Trinidad. The position of the law in Trinidad and Tobago is that only monies which are in the statutory fund can be paid out to policyholders ordinarily resident in Trinidad & Tobago," Gonsalves said.
"We have taken the position that under the Revised Treaty of Chaguaramas that law is contrary to the equal treatment provision of the Revised Treaty of Chaguaramas and therefore has no validity."
Gonsalves said that if Trinidad & Tobago "is treating its own citizens in a particular manner, they must treat everybody in the Community in like manner".
Gonsalves said that even though there is "a deficiency of funds in the statutory fund in relation to the liabilities under the policies of CLICO-Trinidad & Tobago, there are other assets, either of CLICO-Trinidad but through its parent entity, CL Financial, in which resources from St Vincent and the other places went to purchase and we don't have those assets.
"So our position is that we have to be treated in precisely the same manner in respect of CLICO-Trinidad," he told legislators.
Gonsalves said that in the case of BAICO, "there is a slight difference because British American was a Bahamian company but all its back offices arrangements and trade were done in Trinidad and under the suzerainty, obviously, of CL Financing, a company in Trinidad & Tobago, where its body, mind and soul was resident.
"So that there is a case for the contribution from British American but not to the same extent as there is in respect of CLICO Trinidad," he added.
- CMC

http://jamaica-gleaner.com/gleaner/2...business3.html

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