Two regional leaders deposit money in bank to boost confidence

Two regional prime ministers have each deposited more than US$7,000 ($609,000) in the Stanford-owned Bank of Antigua (that is to be renamed Eastern Caribbean Amalgamated Bank) in an effort to boost public confidence in the financial institution.



St. Vincent and the Grenadines Prime Minister Ralph Gonsalves, who heads a sub regional task force on the financial crisis, said he and his Antiguan counterpart Baldwin Spencer felt it was important to signal their personal confidence and trust in the institution, following a recent run on its operations.



“Banking is about trust and confidence and we are making a profound statement here together,” said Gonsalves, shortly after he and his wife, Eloise, opened an account at the bank.



“This measure is one which is intended to build further confidence in this institution and the staff who are a remarkable group of people,” he added.



Late last month, regional regulators seized control of the commercial bank and announced plans for a name change in an effort to stem the outward flow of millions in cash withdrawals by panicked customers. The run was triggered by news that its then owner, Texan billionaire Sir Allen Stanford, was slapped with fraud charges following a US Securities and Exchange Commission investigation.



Spencer, who has re-activated a dormant account he holds at the Antigua-based bank, stressed the need for leadership by example in the wake of the recent run on its operations.



“What we’re doing here is a further demonstration of our burning desire to make sure that this thing works and also to show to the people at large, not only in Antigua & Barbuda, but in the sub region, that we have full and unequivocal confidence in this financial institution and that we regard it as a very important cog in the wheel of the system,” Spencer told reporters.



“This to me is a very historic moment because it is clearly demonstrating that in times of crisis, it is important for us as leaders to be leading and to provide the guidance and the vision to our people,” he added.



Both leaders deposited EC$20,000 (US$7,490.64) saying that they felt the need to inject significant sums of their own money.