| Introduction - What we are going to do is
| |
| | loan must be sold to reduce it to a net
|
| describe the legal and mechanical process
| |
| | value. Generally such a loan is going to
|
| relating to offshore bank failures. We
| |
| | go for a deep discount at best. The
|
| will discuss what leads up to them, what
| |
| | liquidator may have to sell the banks
|
| happens if they fail, and how do the
| |
| | real estate, computers, office equipment
|
| depositors get their money back. The
| |
| | and furniture, cars, boats, planes etc.
|
| terms and scenarios we depict are
| |
| | All this is time consuming and the assets
|
| generally what happens in the world of
| |
| | should be sold at an auction to keep
|
| offshore banking. In some jurisdictions
| |
| | things fair avoiding accusations of
|
| the terminology and procedures may be
| |
| | selling under the market for kickbacks.
|
| slightly different but the general way
| |
| | There is an inherent conflict of interest
|
| things proceed will be in line with the
| |
| | in the liquidation process. The bank
|
| scenarios depicted in this
| |
| | liquidator generally gets paid
|
| article.Offshore Banks - A brief
| |
| | handsomely. Think perhaps $150 to $300 an
|
| definition of this term is in order.
| |
| | hour or maybe $10,000 to $30,000 per
|
| These are banks that are located in
| |
| | month. It is in his best interest to keep
|
| various countries around the world many
| |
| | things going for as long as possible. The
|
| being in Caribbean Island Nations. These
| |
| | lawyers the bank liquidator uses are also
|
| banks have a license that enables them to
| |
| | under this same conflict of interest. How
|
| only do business with people and entities
| |
| | honest and upright these people are going
|
| (trusts and corporations) that are not
| |
| | to be is something for which there is no
|
| from that country. The offshore
| |
| | rule but there is generally a control
|
| jurisdiction does not trust the offshore
| |
| | element in the form of a creditors
|
| bank to accept deposits from its citizens
| |
| | committee. In an honest liquidation the
|
| or corporation filed in that country.
| |
| | liquidator may elect to distribute the
|
| This right away should tell a moderately
| |
| | readily available assets the offshore
|
| astute investor that he or she is perhaps
| |
| | bank has right away. These assets would
|
| not exercising the correct amount of
| |
| | be the actual cash deposits. This is an
|
| caution when it comes to selecting a bank
| |
| | encouraging sign to the creditors. Money
|
| and an offshore jurisdiction. So the
| |
| | would usually be held back to allow the
|
| first warning sign is be careful of
| |
| | liquidation to proceed further allowing
|
| offshore banking licenses. A bank can be
| |
| | for legal expenses etc. Then as real
|
| in an offshore jurisdiction and not have
| |
| | estate and other assets are sold further
|
| an offshore banking license, instead be a
| |
| | distributions would be made. Not all
|
| regularly licensed bank. Offshore bank
| |
| | liquidations are done so directly.The
|
| licenses can be had in some jurisdictions
| |
| | Ugly Side of Offshore Bank Liquidations -
|
| with as little as a $50,000 deposit with
| |
| | Sometimes the offshore bank assets are
|
| the country issuing the license. Usually
| |
| | deposited by the liquidator in another
|
| this amount is never more than $500,000
| |
| | bank. Whether or not this is in an
|
| and many countries require less. As a
| |
| | interest bearing account is always a good
|
| point of comparison a regular bank
| |
| | question. If there is $12,000,000 in cash
|
| operating in Panama is required to post
| |
| | in a bank the interest at 4% a year is a
|
| $10,000,000 cash deposit and the owners
| |
| | serious amount of money that will tempt
|
| go through a rigorous background
| |
| | people. Legal fees can be padded and
|
| investigation.Bank Failure - This is a
| |
| | kickbacks made to the liquidator from the
|
| term relating to the offshore bank being
| |
| | law firm located on the island
|
| unable to fulfill the demand for funds
| |
| | jurisdiction the offshore bank is in.
|
| from their depositors. This can occur for
| |
| | Some of these islands where these
|
| a number of reasons, some bad and some
| |
| | offshore banks are have less than 100,000
|
| not so bad. The offshore bank may have
| |
| | people living in the country. You are
|
| been found to be below its protective
| |
| | foreigners and don't expect such honest
|
| ratios and the government bank auditors
| |
| | treatment in these tourist island
|
| or financial ministry may decide to shut
| |
| | jurisdictions. They may view these
|
| the bank down in terms of money going out
| |
| | offshore bank liquidations as a feast for
|
| for a limited period of time to see if
| |
| | the locals courtesy of all the rich
|
| the bank can return their ratios quickly
| |
| | foreigners. Excessive travel can be run
|
| to an acceptable level. In the event the
| |
| | up by the liquidator. He can travel
|
| ratios return to an acceptable level the
| |
| | abroad going first class all the way even
|
| bank operation resumes normally and the
| |
| | bringing the lawyers along, all on the
|
| depositors may not even know anything
| |
| | clock. The liquidator can reach crooked
|
| occurred.Complaints - The way offshore
| |
| | settlements with people who posted
|
| bank failures generally start is with
| |
| | collateral for loans with the offshore
|
| complaints to the licensing authority of
| |
| | bank. Depositors of the offshore bank can
|
| the country where the bank is located
| |
| | file lawsuits for special treatment and
|
| stating that requests to withdraw funds
| |
| | the liquidator can settle with them in a
|
| are not being met by the bank. To
| |
| | crooked manner for an illegal kickback
|
| document this the account holder
| |
| | and then they get all their back while
|
| generally retains legal counsel in the
| |
| | you only get a fraction back. Real estate
|
| country where the offshore bank is
| |
| | owned by the offshore bank can be sold
|
| located and files a formal demand for the
| |
| | under market value for a kickback to a
|
| funds to bank with a very short deadline.
| |
| | friend or relative of the liquidator.
|
| When this demand is not met the law firm
| |
| | Same can be done with cars, computers
|
| will file a formal complaint to the
| |
| | etc. The liquidator can elect to chase
|
| offshore bank licensing authority who
| |
| | assets not worth chasing to continue his
|
| will generally conduct an investigation.
| |
| | high paying job some years longer than it
|
| They may have their own auditors or hire
| |
| | should require. Remember offshore bank
|
| an independent team of auditors to go
| |
| | liquidations do not come along every day
|
| through the offshore bank records. They
| |
| | and the liquidator has no idea where his
|
| will look to see if there are any loans
| |
| | next job is going to come from. There is
|
| on the books that do not meet the
| |
| | a check and balance usually in the bank
|
| guidelines for lending such as writing
| |
| | liquidation process which is described
|
| uncollateralized loans is usually
| |
| | below.Offshore Bank Liquidation Creditors
|
| considered an offense. Loans to the
| |
| | Committee - A creditor of the offshore
|
| principals of the bank are another red
| |
| | bank is generally a depositor but it
|
| flag. Real estate acquisitions like
| |
| | could be the electric company or the
|
| mansions on the island where the offshore
| |
| | phone company. Generally, the employees
|
| bank is located for the bank executives
| |
| | are considered priority creditors when it
|
| to live in is another red flag as well.
| |
| | comes to their wages and they get paid
|
| Usually without loans the bank would not
| |
| | off first and fast. The depositor is owed
|
| fail to meet its ratios. When these loans
| |
| | money by the offshore bank based on their
|
| go bad and there is no collateral to go
| |
| | deposits, thus he or she is a creditor as
|
| after then the banks get into trouble.
| |
| | far as the offshore bank liquidation is
|
| The complaint process is possibly the
| |
| | concerned. An offshore bank liquidation
|
| only way the government is going to know
| |
| | is sort of like a bankruptcy proceeding.
|
| their offshore bank is in trouble and by
| |
| | In an offshore bank liquidation a
|
| then it may be too late, but it may not
| |
| | creditors committee is formed which is
|
| be too late. Remember we are talking
| |
| | something done in many bankruptcy
|
| about offshore banks here, not regularly
| |
| | proceedings. The creditors committee
|
| licensed regular banks which are audited
| |
| | could possibly have been formed before
|
| and watched way more closely by the
| |
| | the liquidator came into office and they
|
| government and usually by a different
| |
| | appoint the liquidator with or without
|
| government agency than the agency
| |
| | the approval of the court, rules vary
|
| supervising offshore banks. We as a
| |
| | some depending on the offshore
|
| Panama Law firm do not introduce clients
| |
| | jurisdiction involved. The creditors
|
| to offshore banks which should tell you
| |
| | committee generally is voted into
|
| something.Loss of Correspondent Bank -
| |
| | existence by the creditors, the creditors
|
| Sometimes the offshore bank has just lost
| |
| | with the most dollars on deposit having
|
| one or more of its correspondent banks
| |
| | the most votes is one way to look at it.
|
| and can not execute wire transfers until
| |
| | All creditors are generally not treated
|
| it replaces the correspondent with
| |
| | equal. The creditors committee members
|
| another correspondent bank which may take
| |
| | are all on the same side and that side is
|
| several weeks. When the complaints hit
| |
| | interested in getting as much money back
|
| the government they will investigate, see
| |
| | as they can. Decisions as to how to spend
|
| that the funds are in place and allow the
| |
| | money chasing assets or potential assets
|
| offshore bank a reasonable period of time
| |
| | are usually made by the liquidator but
|
| to secure another correspondent bank,
| |
| | the creditors committee can exert control
|
| checking with them for progress reports.
| |
| | over the liquidator even replacing the
|
| This is a not so bad problem that will
| |
| | liquidator in extreme circumstances. Some
|
| only serve to scare and inconvenience the
| |
| | bank liquidations have taken place
|
| depositors.Offshore Bank Receivership -
| |
| | without creditor committees in place.
|
| This is a process whereby the government
| |
| | These are generally less than above board
|
| agency that licenses the offshore bank
| |
| | liquidations.Creditor Claims in Offshore
|
| takes over the offshore bank to control
| |
| | Bank Liquidations - When the liquidator
|
| its operation with an eye towards saving
| |
| | is in office the depositors are generally
|
| the bank. Sometimes they are successful
| |
| | required to file claims. The claims
|
| and well sometimes not. Often a team of
| |
| | process involves filing identity
|
| professionals from a large auditing or
| |
| | documents with the liquidator and
|
| accounting firm are brought in.
| |
| | identifying your account and how much
|
| Receivership practices can frequently
| |
| | money was in it. Offshore bank
|
| mean that a percentage of your funds will
| |
| | liquidations are conducted in open court
|
| be unavailable for withdrawal for
| |
| | and these claims wind up as exhibits in
|
| sometime. This is to prevent a run on the
| |
| | the public domain. What I am saying is
|
| offshore bank which would for sure topple
| |
| | bank secrecy is not in place once the
|
| it and thus cost the depositors
| |
| | bank is in liquidation. What one can
|
| substantial losses. You may be only able
| |
| | expect to see is a fair number of
|
| to take out say 25% of your funds. What
| |
| | depositors failing to file claims because
|
| can often happen is the depositors lose
| |
| | of various reasons often relating to bank
|
| faith and take as much money out as they
| |
| | secrecy. Of course this means a greater
|
| can and avoid putting in any more money.
| |
| | recovery for those who do file the claims
|
| This usually results in the offshore bank
| |
| | while the other folks walk away with a
|
| failing totally and being shut down.Suing
| |
| | total loss of their funds by choice.What
|
| the Offshore Bank - What often happens in
| |
| | to do if you are in an Offshore Bank
|
| these offshore bank receivership
| |
| | Liquidation - If you are already involved
|
| scenarios is some depositors get scared
| |
| | in a bank liquidation you made a mistake
|
| and act jumpy and sue the bank. The
| |
| | and you are going to get hurt. How badly
|
| lawsuits generally involve having the
| |
| | hurt is the question so you should be
|
| court encumber or tie up an amount equal
| |
| | trying to mitigate your damages. If a
|
| to their deposit. To accomplish this the
| |
| | creditors committee is forming try to get
|
| depositors generally have to resort to
| |
| | involved actively, even try to sit on the
|
| deceit or twisting the truth minimally,
| |
| | committee. If the liquidator has not yet
|
| to make the court think they were not
| |
| | been appointed do get involved in that
|
| ordinary depositors or the amount in
| |
| | process. Try to find ways to meet other
|
| question consisted of funds to be handled
| |
| | depositors. Call lawyers on the island
|
| in a special exceptional manner. The way
| |
| | and ask them to represent a group of
|
| the depositors are playing their hand is
| |
| | creditors collectively. Rest assured
|
| get the court to hold my money before the
| |
| | other depositors will be calling lawyers
|
| bank goes down completely and then my
| |
| | on the island and the lawyer can be a
|
| funds get mixed in with all the
| |
| | contact point to form a creditors
|
| depositors in the fracas. If one files
| |
| | committee. The idea may not occur to a
|
| such a lawsuit they are generally
| |
| | lot of these lawyers so help them out a
|
| excluded from filing claims as regular
| |
| | bit. If you can get a creditors committee
|
| creditors (depositors) of the bank in the
| |
| | in place and have it appoint a liquidator
|
| event of a liquidation and if they lose
| |
| | you will probably have a honest
|
| their lawsuit (an expected occurrence if
| |
| | liquidation, probably. That having been
|
| based on fraud or deceit) they can lose
| |
| | said one must still leave room for the
|
| all. Usually several depositors will file
| |
| | offshore bank itself having been
|
| such lawsuits if there is any official
| |
| | intrinsically dishonest and the bank
|
| action taken against the offshore bank
| |
| | owners have since ran away with the
|
| and this could push the offshore bank
| |
| | funds. When you read the offshore bank
|
| into greater difficulty and if there is a
| |
| | liquidation horror stories you see that
|
| bank liquidation it will be a most
| |
| | the money trail goes from country to
|
| complex one with a lot of depositors
| |
| | country, bank to bank and then it ends up
|
| funds eaten up in legal fees.Offshore
| |
| | with a large cash withdrawal which is
|
| Bank Liquidation - This is of course the
| |
| | usually the end of the trail. The
|
| sword of gloom in the world of offshore
| |
| | offshore jurisdiction may fail to ever
|
| banking. For things to reach this level
| |
| | prosecute them or file charges which of
|
| the government had to have felt that the
| |
| | course make one wonder what was going on.
|
| offshore bank is not salvageable.
| |
| | So the key here is to get involved
|
| Generally a bunch of depositors filing
| |
| | actively. It is real important to open
|
| lawsuits and jamming up the court system
| |
| | communications with other creditors and
|
| of some island jurisdiction is going to
| |
| | get organized.How to Avoid Being in
|
| encourage the government there to
| |
| | Offshore Bank Liquidations - The answer
|
| liquidate the offshore bank in hopes of
| |
| | is of course simple, avoid offshore
|
| freeing up their courts. Imagine an
| |
| | banks. Stick to banks with full banking
|
| offshore tax haven island court system. A
| |
| | licenses that can conduct banking
|
| small building with one to three
| |
| | business with the residents of the
|
| courtrooms and maybe three or four
| |
| | country as well as with entities not
|
| judges. These courts hear divorce, child
| |
| | located in the country.Offshore Bank
|
| custody, personal injury as in auto
| |
| | Alternatives - The best alternative to
|
| accidents, bankruptcy, collection cases,
| |
| | these tax haven island offshore
|
| resident disputes with building
| |
| | jurisdictions is Panama. Panama is a
|
| contractors, traffic court cases, and
| |
| | solid offshore tax haven jurisdiction
|
| criminal cases. The court is there to
| |
| | that does not tax offshore derived income
|
| enable the island jurisdiction to
| |
| | and has no capital gains tax or tax on
|
| function as an independent governing
| |
| | stock market gains. Panama has fully
|
| state. It is not going to jam up its
| |
| | anonymous bearer share corporations where
|
| courts increasing the wait times for its
| |
| | the owners are not recorded in any
|
| citizens that are trying to deal with
| |
| | registry or database. Panama has
|
| vital matters like child custody where
| |
| | anonymous foundations which are able to
|
| one of the parents is an abusive drunk
| |
| | have generally non-freezable bank
|
| hurting the children. When the offshore
| |
| | accounts. Panama has no tax treaties with
|
| bank gets put into liquidation generally
| |
| | any country so fishing expeditions are
|
| the court cases can be disposed of
| |
| | not going to happen. Panama has the
|
| quickly or even by summary dismissal. The
| |
| | tightest bank secrecy laws in the world
|
| government knows that the people behind
| |
| | and when coupled with an anonymous bearer
|
| these lawsuits are trying to get more
| |
| | share corporation it becomes the most
|
| money than they would if they just waited
| |
| | secure and private structure one could
|
| for the liquidation to proceed and are
| |
| | have in the world today. Panama has
|
| not amused by their litigious
| |
| | 400,000 corporations registered there as
|
| behavior.The Offshore Bank Liquidation
| |
| | well as many of the merchant marine
|
| Process - So now the bank is in
| |
| | vessels and cruise ships in the world.
|
| liquidation. What does this mean?
| |
| | Panama has about 150 banks many of which
|
| Basically a liquidator will be appointed
| |
| | are large multi-billion dollar
|
| to determine what assets the bank has,
| |
| | international conglomerates, yet the
|
| liquidate what can be profitably
| |
| | banking operation in Panama is a separate
|
| liquidated and then see how much money is
| |
| | bank corporation operating under Panama
|
| left. The remaining money will be divided
| |
| | bank secrecy laws. Panama has not had a
|
| up amongst the depositors fairly
| |
| | bank failure in over five years. Panama
|
| depending on how much they had on deposit
| |
| | has had only a few bank failures in its
|
| in the offshore bank. They will get a
| |
| | history whereas Switzerland had over 15
|
| percentage of their deposit back. What
| |
| | bank failures during the years 1999 to
|
| would be a good return in a liquidation,
| |
| | 2000. Panama tightly regulates its banks.
|
| 75%. What would be a bad return well
| |
| | Every Panama Bank must submit monthly
|
| there was a liquidation in Latvia a few
| |
| | auditing reports to Panama's Banking
|
| years ago where the depositors got 2%.
| |
| | Superintendent, which is under direct
|
| What is a typical return? There is no
| |
| | supervision by the Banco Nacional de
|
| number but it should be 33% to 60% unless
| |
| | Panama (BNP), the National Bank of
|
| the bank has been really mismanaged.The
| |
| | Panama. A list of prominent international
|
| Offshore Bank Liquidator - This is
| |
| | banks in Panama includes: Citibank, HSBC,
|
| generally a person with an accounting,
| |
| | Dresdner Bank, Bank of Tokyo, Bank of
|
| legal or banking background. They can
| |
| | Boston, Banco Nacional de Paris,
|
| understand the books of the offshore bank
| |
| | International Commercial Bank of China,
|
| and the laws pertaining to the offshore
| |
| | Societe Generale, Banque Sudameris, BBVA,
|
| bank and the liquidation. If the offshore
| |
| | Banco Uno, Banco General, PriBanco, Banco
|
| bank had secured loans that went bad
| |
| | del Istmo, Global Bank, MultiCredit Bank,
|
| (payments not be made according to
| |
| | PanaBank, ABN Amro, Banco Aliado, Banco
|
| written loan documents) they will analyze
| |
| | Continental, BancoLat, BIPAN, Lloyds TLB
|
| the worth of going after the collateral.
| |
| | Bank, and the Bank of Nova Scotia. Many
|
| If there was a farm in Argentina posted
| |
| | of the Panama banks own office building
|
| as collateral for a three million dollar
| |
| | skyscrapers 40+ stories tall with their
|
| loan he may order an appraisal of the
| |
| | name on the building. These are not
|
| farm to see if it really worth that much.
| |
| | grocery store sized banks found in the
|
| If the value of the farm is more than the
| |
| | island jurisdictions. The Panama Stock
|
| legal expense of securing and liquidating
| |
| | Exchange has an average trading volume of
|
| the asset the liquidator should go ahead
| |
| | $900,000,000.Panama is free of
|
| and liquidate it. This process may take a
| |
| | hurricanes, volcanoes, tornadoes, and
|
| year or longer. If a loan was made to a
| |
| | earthquakes which is why the Panama Canal
|
| trucking company in Belgium for a fleet
| |
| | was built there. Panama uses the US
|
| of trucks the same liquidation process
| |
| | dollar as their national currency. Panama
|
| may occur. This sort of liquidation may
| |
| | has modern telephones, cell phones and
|
| take even two or three years depending on
| |
| | internet being a country having been
|
| what type of liquidation processes may
| |
| | built by the Americans which left Panama
|
| need to be followed. The borrower may
| |
| | in 2000. Panama has a treaty with the USA
|
| file bankruptcy making the liquidation of
| |
| | calling for the USA to protect the Panama
|
| the secured assets difficult and time
| |
| | Canal if it was threatened. This means
|
| consuming in some countries. The
| |
| | the peace and security of the Republic of
|
| bankruptcy court might let the borrower
| |
| | Panama is protected by the USA which
|
| continue making payments and keep the
| |
| | could have jet fighters there in minutes.
|
| asset which can make for a rather
| |
| | Panama is the new Switzerland of the
|
| problematic liquidation because now the
| |
| | world.
|
