Depositors of Stanford Bank, the offshore bank, that may possibly be a Ponzi scheme, are pouring onto the Island of Antigua to claim their cash.
WSJ: Lawyers said at least some depositors were being allowed to withdraw funds under the terms of their certificates of deposit. Meanwhile, some local clients have also responded to the news headlines by pulling funds from the separate Stanford-controlled Bank of Antigua. Clients have been told processing of the withdrawals could take several days, according to depositors and attorneys.
One depositor in Houston said he tried to redeem his CDs worth roughly $500,000 Friday morning after reading newspaper articles about the investigation into Mr. Stanford’s operations. The rate on his CDs was 8.25%, he said. His advisor told him he couldn’t redeem them for two months.
“Ironically, I thought it was one of the more safe investments,” he said. “My fear is that some investors are being allowed to redeem CDs while others are not. I am trying to get additional information about the bank and my redemption request, but have been unsuccessful so far.”
An offshore bank, yielding 8.25%… Yeah, we could see why he thought it was so safe. Perhaps because his account was called a “CD”.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.