That's the approximate number of depositors who were left hanging in Stanford International Bank when it went into recievership by the Antiguan authorities. The receivers plan to get a statement out to every one of these clients so they can check their claim.
That's good news. It would seem that the data integrity has been preserved, at least on the liability side.
It tells us a few more things also. The bank was probably under some stress for redemptions and losing clients, as it had stated back in December 2007, that it had over 50,000 clients and as recently as December 2008 the figure was stated as "over 30,000".
You have to think if we can believe those numbers or not, but assuming they were correct you can see the drain.
What is now being determined is what remains on the asset side. At this point the receiver has already stated that there is "nothing like $8 billion" in the portfolio. Plus the fact that the bank was having trouble with redemptions, and scrambling for cash makes it clear that there weren't many liquid assets left.
But lies work both ways and one can only hope that the bank has some assets also "off the books" which can be seized and used to satisfy creditors. Even if they are illiquid ones. We know from SEC documents that the bank that "Doesn't do loans" actually had lent money to eLandia. There could be more of these deals out there.
Then of course, there are Mr. Stanford's assets, some of which have been seized or frozen. But there is a problem with that also. You see, Stanford International Bank never paid a dividend. So, if Mr. Stanford was receiving compensation from the bank in some other fashion, he needed to report that on his 1040. And while the IRS in normal circumstances can only go back three years to conduct an audit, if there is evidence of fraud, they can go back further. If Mr. Stanford owes US taxes (and apparently he does), the IRS gets first dibs on the seized assets. So, I'd say it's a pretty good bet that Mr. Stanford's filings are no longer gathering dust in the IRS's archives at this point.
The IKN Weekly, out now
1 hour ago