What Lovely Weather for a Bank Run…

by Chris Sturr | February 18, 2009

From today’s Guardian. A bank run in offshore tax shelters. Beautiful.

Run on Stanford banks in wake of fraud charges
People queue to withdraw deposits in Antigua, Panama and Venezuela amid fraud case against Twenty20 cricket mogul
Staff and agencies
guardian.co.uk, Wednesday 18 February 2009 18.12 GMT

Hundreds of people in Antigua queued today to withdraw money from banks linked to Sir Allen Stanford, the Twenty20 cricket mogul and US financier, after being panicked by the 8bn pound fraud charges against his company.

There was a run on two branches of the Bank of Antigua, owned by the Texan billionaire’s Stanford Financial Group. The banks have not been linked to the allegations of fraud lodged at a federal court in Dallas yesterday.

In Panama, bank regulators said they had taken over the local affiliate of Stanford Financial Group after a similar run on customer deposits.

Hundreds of Venezuelans mobbed local offices of Stanford International. It was the second day that long lines formed at offices in Venezuela, people with investments at the company said. Venezuelans have an estimated $2.5bn invested in Stanford International, the country’s banking regulator has said.

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