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There's a a top story in BusinessWeek online edition about Stanford Financial. It says regulators are taking a hard look at the company. The gist of the article is that the company has been paying above market returns but the underlying assets don't seem to support that. There's no allegations at this point of wrongdoing--just an investigation. If it's not true, it's the kind of thing that causes a run on the bank. Since it's a;ready out there as news however, I thought some of you might be interested.
Here is the link:
Posted : February 12, 2009 12:44 am
wow
i know someone who works for them here on stx. i hope there really is nothing shady going on
Posted : February 12, 2009 11:09 am
Ouch, I just read the whole article and the 80 comments (many from former or current Stanford employees.) I'm praying these guys were banking in offshore investments and commodities and that this isn't another Madoff-style scam...
Posted : February 14, 2009 2:50 pm
also article in wall street journal.
http://online.wsj.com/article/SB123457038088986331.html?mod=googlenews_wsj
Posted : February 14, 2009 8:42 pm
And the walls come tumbling down!
Posted : February 17, 2009 7:05 pm
oh snap! i knew something was going to happen with this company. employees boasted amazing benefits, great pay. sometimes it really is too good to be true. it sucks to look for a job in this economy.
Posted : February 17, 2009 7:52 pm
We heard Stanford bought up alot of real estate on St Croix. Anyone know in what way ,if any, this company's problems will effect St Croix?
Posted : February 17, 2009 8:01 pm
Topic starter
That's too bad. It's bad for the investors, employees of Stanford, and bad for STX. Here's a quote that seems to sum things up:
"the SEC's Fort Worth regional director, says, "We are alleging a fraud of shocking magnitude that has spread its tentacles around the world."
Does anyone know Stnaford's headcount on the island?
Posted : February 17, 2009 8:44 pm
i heard someone was just laid off??
Posted : February 17, 2009 9:11 pm
nforbes: he bought (buying) up downtown C'sted.
Posted : February 18, 2009 12:16 am
About a month ago the word went out that any deals in the works with Stanford were frozen. So all real estate deals that he was in the middle of went bust......
Posted : February 18, 2009 1:14 am
The business next to mine in Atlanta just closed today. They were funded by Stanford. The SEC is seizing assets and freezing the accounts. They are alleged to have created an $8 billion ponzi scheme like Madoff. They have been under investigation since the Madoff deal. The feds closed them down today and are working with the Caribbean bank to repatriate the assets to settle debts. My neighbor said everything in their company will go into receivership.
Posted : February 18, 2009 2:04 am
so now many more will have lost everything for their retirement, just like in the madoff scheme.
Posted : February 18, 2009 10:51 am
Greed!! Plain disgusting! Innocent folks have been destroyed while these great white sharks are still lurking waters (and or house arrest :-X) looking for their next victims.........
Posted : February 18, 2009 1:24 pm
Dang, I contemplated applying to be a chef on his yacht.
Speaking of yacht, one of my food purveyors told me today that they went to the dock to clear out all of the food on his yacht since it was in receivership. Youch!
Posted : February 18, 2009 3:06 pm
another one of our island saviours has bit the dust
Posted : February 18, 2009 3:14 pm
just read the story on cnn.com,I am stunned,if feel horrible for the people that get hurt the most on this deal.
Posted : February 18, 2009 3:14 pm
Amazing, Allen Stanford is MIA.........:-o
Posted : February 18, 2009 7:31 pm
Yeah...definitely one passport the Marshalls wish they'd seized!
Posted : February 18, 2009 7:36 pm
You know, he could easily sneak back onto STX via boat at night (like the gun smugglers do) and not be noticed. It would be a perfectly wyly move to hide in a part of the U.S. without the resources to find him.
Posted : February 18, 2009 8:24 pm
interesting, all the national review has to say about him is that he gave over 800,000 to politicians,and they list all the dems but none of the republicans,typical
Posted : February 18, 2009 8:29 pm
We have the resources here if they think he is here. There are Marshals here. Last time I heard they even had a couple of permanent ones, but when they don't they live down here in rotation. Be crazy to hide here, someone would turn him in hoping for a reward or informant money.
Posted : February 18, 2009 8:34 pm
He probably got EDC benefits, so that program has taken another major hit.
Stanford was greedy, and those who dealt with him were also greedy, so it's hard to be concerned about the losses of those involved. People who could've invested in the safe, low earning investments the majority of us have, chose higher risk investments with extraordinary potential yields. Employees knew the "amazing benefits" and "great pay" weren't customary for the area and chose to accept the jobs anyway, knowing there had to be some reason for such pay and benefits to be offered. Due diligence by investors and employees could've prevented their involvement in this particular mess, and their failure to anticipate the obvious doesn't merit much empathy.
Posted : February 18, 2009 8:58 pm
I don't think you can assign blame to local Stanford employees just because they received a great compensation package. There are many highly skilled folks living on-island who came from high paying positions on the mainland. There is no reason to expect to significantly lower the value one adds to an organization based on geographic location. Especially when most transplants face increased expenses. It is a great disappointment that one of our better paying employers is facing these accusations of impropriety. After all a rising tide floats all boats.
Posted : February 18, 2009 10:21 pm
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