PM Thompson Calling It As It Is Should Barbadians Worry About Their Assets In US Banks?
September 29, 2008 3 Comments
Photo credit -UN
I came across an interesting piece of information on Bajan Dream Project blog where it states that 35,000 bajans live on less than $8.00 a day.
The Project primary aim according to its blog is to ‘deliver a unique intervention by combining skills training, micro-financing and housing provision in a sustainable ‘workfare’ model. Our broad aims are to give the poor the tools needed to earn their own income and grow their personal wealth, while supplementing their economic independence through the provision of affordable housing.’
At the recent held 63rd UN General Assembly, the topic of poverty, the needs for small nations concerns to be well heeded in the internaional arena and the ongoing global financial crisis in the financial markets today, PM David Thompson wasted no time in declaring his views on the current financial turmoil in the States and its ripple effects throughout the worldwide banking system and stock markets.
“Barbados believes that those responsible for the crisis, and who also created, controlled, and manipulated the global financial system for their own advantage, cannot be trusted to heal it,” Prime Minister David Thompson told the assembly.
“Developing countries must demonstrate leadership in the search for a lasting solution to the global financial crisis and insist that any exan ercise to institute reforms must strictly adhere to the principles of openness, transparency and inclusiveness, with the United Nations taking the lead,” said the Barbados leader. Source The People Online.
Readers will recall BGR posting an article titled ‘Barbados Safe For Now’ on our blog. The article taken from the Barbados Advocate was entitled ‘Barbados Safe’. We prefer to be more realistic. Such realism was brought home when a former banker, Harrold Russell wrote an opinionated piece in the media on the Caribbean banking sector partnerships with the US banking sector and subsequently the global financial system.
According to the piece, ”of the 11 billion dollars in assets of the banking system in Barbados, 2.7 billion dollars is held abroad and especially with American banks and in US dollars.” Under US financial laws, bank accounts are insured up to $100,000 per depositor per per bank. Should Barbadians be worry about billions of bajans dollars in US banks insurable up to only $100,000, in a shaky economy and a falling dollar? [As up this writing, the $700m bailout deal was blocked]. Under the Deposit Insurance Act of Barbados, deposits are insured up to a maximum of $25,000. So, if you have $50,000 in the bank and the same bank happen to go bankrupt, you will get your $25,000. What about the rest? A certificate will be issued to you, outlining your previous deposit, your insurable amount and your balance own to you. You will need this of course during the liquidation proceedings. Provided of course enough money is available for you to get anything at all after any fat cats get their due! So my advice is, if push comes to shove, spread the love around. Or in this case, the money. The Barbados Bankers Association, who up to a few months ago was nonexistent to the public except to the banking fraternity, have found itself in the spotlight again if only for its cabal perception by the writer of the article.