Hidden Agendas?

Submitted by Old Onions Bag
Financial Services Commission drops the hammer on credit unions

Financial Services Commission drops the hammer on credit unions

Latest move by Government through a directive coming from the Financial Services Commission (FSC), to curtail the credit unions as to where they can invest, has stirred up a hornets nest. Now investing for them is all but limited to commercial banks and government paper. Really now, how much money can be made with commercial banks, 2 % or  5% on fixed deposits if you are lucky? Can be liken to operating in a piggy bank environment, risk aversive for sure, but at what loss of possible profits?. All that’s left is government bonds and paper instruments. Such directives most probably  have been influenced by the Clico paviova, and a protectionist policy for investors, but could there be more, given that commercial banks’ interest in government bonds and instruments have declined considerably.

So why must the credit unions  always play whipping boy with obvious mollycoddle ? Must these institutions (peoples money) be always corralled to suit others agendas all the time? Why can’t the credit unions be allowed to grow as with most financial institutions, for one, like allowing them their own bank? Surely we could venture a guess, that commercial banks would see an exodus of the ‘peoples deposits’ to where, policies and interest rates and sharing of profits would be much more fertile.

Credit unions you are being served notice….bail bonders extraordinaire‘….

97 responses to “Hidden Agendas?

  1. http://en.wikipedia.org/wiki/Credit_union (something about community development)

  2. St. George’s Dragon,

    Let us not let this discourse – call it that – degenerate into the trading of worded insults.

    We are on this BU blog to engage in serious analysis and exposition of the facts and theories related to so many things that we are aware of in this country.

    We do not wish to waste time on this blog, via diversions into trivia and foolishness.

    Anyhow, to deal with your scenario.

    We have to ask you: what premises are you using to support your hypothesis that money was made??

    Was this part of your income – expressed by money – that you lent out?? if it was, then you were entitled to that portion of your income that you lent out – not any more!! Were it a financial institution, it would have been different, since what the financial institution would have been money transferring out to anybody, would not have been the incomes or payments or transfers that belong to it, but the money that belong to the people.

    In such cases of financial institutions, or in your scenario where you are looking at the interest aspect, could there have been really objectively a money cost/benefit for using the money?? when clearly there is none between the different monies?? where there is no money cost/benefit arising from such money usage??

    Well, the truth is that generally when there has been an agreement to give some unconnected amount higher or lower than that that was given originally, it is – even though the agreement is considered by the parties to it to be important – it is not it – the agreement – that gave rise to the money being given in the first place and the other money in the second place – including the interest – but it is the different and far-reaching actions involving the cost of/ use of money leading up to the giving of the amount of money.

    Anyhow, back to your scenario, was the money that was given to you inclusive of the exact bills or coins as the first ones??

    If yes, then where did the other ones come from??

    If no, then where did all those relevant monies come from??

    If yes and no, then did they come out of the same process of passing on money??

    Is there therefore a real difference between where some monies came out from and where all came out from??

    Was use of them passed on to you from other souls??

    Is not such passing around of the use of money – whatever the numbers – part of the money circulation process?

    Did those souls see the money that was being passed on to you as your making money?? Or did they see money being passed on to you and your having future use of money that is already there, rather than seeing it as your making money ??

    Was there any relationship between the money that was lent by you and the money that was given to you?? If yes, then it speaks to the same money being used and circulated.

    If no, then it speaks to their being no relationship between the two sets of money.

    Is there at all, though, any material or other relationships between any bill or coin, and any other bills or coins whenever they are being used??

    If yes, then it is only to such an extent that with each bill or coin there is for each the material that comprises them.

    If no, then there could never ever be any thing such as money debt since what is only in existence is the material that makes up the money and since money is not capable of being owned by individuals, is public property, is not subject to costing individuals for owning it, and is identical in so far as one is dealing with particular denominations, using it cannot give rise to individual debt claims against it.

    PDC

  3. old onion bags

    If what has been deliberated here(unable to be present) is true…..we in potta. Have some not heard of the dominio effect?… more simply.. the ole addage.. “puttin all your eggs in one basket”…why if the credit unions had all their monies in Govt bonds and the peoples (alike NIS Fund) now ONLY savings for a rainy day… had to meet some disasterous fumble….somebody unable to meet their committments …..what a messy disarray would ensue..

  4. old onion bags

    @ David…> typo

    FSC per the intro…..is D Financial Services Commission….( although that is proving to be a real Fairy)..Lol

  5. Well Well.

    Old Onions……………what really sickens me, are the sheeple like acSLEAZE, who if i had my way would be tightly fitted into handcuffs and shackles for her acSLEAZINESS, people like her with the limited intellectual acuity of vicious crabs would knowingly aid and abet the financial victimization of her own people by the present administration, not unlike the CLICO scam, just so she can fly party colors and boast, but later, soundly blame the victims, just like she did with the CLICO scam………credit union members need to take a stance.

  6. old onion bags

    @ well Well
    Problem with the credit unions as Caswell rightly states…too much political lackeyism….Govt been able to worn around many of these high flyer to suit their end too EZ. Now we having it also with some of these trade unions…case to point NUPW…Is people like Hon Maxine McClean who should be there to shout..affa all …she owes the credit union movement a lil historical TLC…lol

  7. Well Well.

    Old Onions…………..McClean is nothing but political window dressing, she has no power except what she is prompted to say.

  8. Is the directive from the FSC driven by concerns about Capita?

  9. old onion bags

    Cannot say, however, Caswells analysis makes most logic….
    snip
    I am of the view that the FSC is trying to force credit unions to buy government paper. Watch the sequence of events: the Central Bank reduced the minimum savings rate; the FSC directed credit unions to remove their funds from non-bank financial institutions; and Government went to Parliament to increase the amount of money that it could borrow

  10. In Canada, deposits in banks are insured by Canada Deposit Insurance Corporation

    http://www.cdic.ca/home/Pages/default.aspx

    Deposits in credit unions are insured by provincial deposit insurance corporations

    http://www.fcac-acfc.gc.ca/eng/consumers/banking/depositins/index-eng.asp

  11. Polly wants a Pit Bull

    Seems like trouble in the wings here. Why what is the position with the NIS Fund? This is definitely a sign for concern.

  12. Seems like trouble in the wings here
    *********
    LOL real hard @ Polly.
    That is like someone who recently exclaimed to the bushman ” “….Bush! um is half de year done already…”

    Where have you been Polly? Trouble has been here for some time now…. What is about to come is better described as “cat piss and pepper….”

  13. Prodigal Son

    onions,
    Boy, the likes of ac, TTP and CCC gave you, miller and I hell after they said “we win”. Now it seems as if all hell is beginning to break loose. I knew the government was in deeper trouble when it was revealed that he moved 100 million dollars out of the severance fund and then had the gall to curse out the Director of the NIS telling him he had better tow the line. (Sinckler seem to forget that politicians come and go).

    Now today, Caswell made another revelation on Brasstacks………since their plan was blown out of the water last week, it seems as if they have come up with another plan……when temporary officers time expired, they are not renewing the letters of appointments. This government really think they are bright!

    I remember some fraud came on BU telling lies that she was assaulted at the BLP’s Haggatt Hall do and said that her dad told her that is how the BLP operates and that she went to the DLP do and was not assaulted and therefore she was going to vote DLP because she wanted to keep her job. Hope she is not one of these whose contracts are not being renewed.

    If so, poetic justice wont you say for telling bold faced lies!

  14. old onion bags

    Prodi

    Like they say ..when the chickens come home to roost…..shoite duz be left in D morning. When I hear the DLp edge out the Buy- elections by 16 –14 I went on the blog and tell ac and CC “keep um….an elections result deserving a lose” Now hopefully they see why.

  15. old onion bags

    But wait..I notice the clowns gone hiding….anyone see them lately?

  16. Well Well.

    Old Onions………….as i said in my posts this morning acSLEAZE and the crowd of sheeple know exactly what is happening, they more than likely think it will be a huge surprise and triumph, as i said, i would like to ready some tight handcuffs and shackles for them.

  17. old onion bags

    @ Carson + Ac

    We know you out there reading….can’t take the licks? …come in here and represent your people

  18. Well Well.

    All hidden agendas………………………………

  19. Smooth Chocolate

    so Casell was truthful after all? i did say in an another blog that i knew he had his facts…now that jackasses that chose to bury their heads in the sand and listen to utter stupid ads just before elections are reaping the whirlwind. this government needs to be removed from office before the end of the year. they do not know what they are doing and it is now showing. can you business men, opposition party someone, anyone bring a NO CONFIDENCE motion against these clowns and let us return to the voting booths – we will have a totally different result, all the vote buying will not help them… this situation is getting frightening…my son just returned home from Europe, my daughter have just completed her degree, i am now on the verge of flying out with them but i feel compelled to stay, it is still a beautiful island…where is Mia Mottley?

  20. man two thumbs up to Jeff Broomes .

  21. old onion bag

    @ ac
    If Jazzy J doan keep he arse quiet…dem parkinson folk gine BBQ E…he ent up road view…up dey more like vietman…J boi do like poodle ..quix

  22. @Caswell

    r u sure cob was given a directive by fsc and if ur answer is in the affirmative, can u place a copy of the letter on the blog. If a letter was written, was it in relation to an audit done?

  23. old onion bag

    Newblood

    Time you sleeze balls stop playing the semantics game and like OAS said…”awake from denial”…what are you sayin..that no such directive exist from Govt? …ac like you find a new moniker friend…DLP in a boiling caudron and can’t find no answers…..should have left this one alone..tief a bait dem.

  24. onion no comment from Owen on the raging war in and out of court between Payne and Hinckson. They are his fellow MP’s in Parliament the highest decision making body in the land not two year olds bickering over a shirley biscuit. Could it be he is in denial on the BLP implosion?

    Mia and Cynthia were conspicuous from Owen’s latest rant. Wife beater though made his presnce known.

    No Owen its not Barbados darkest hour its the BLP thats in a dark place.

  25. Caswell Franklyn

    Newblood

    I am absolutely certain that the FSC gave a directive to COB. I cannot place the copy of the letter on the blog because it came into my possession as a member of the Supervisory Committee: it did not fall off of a truck as most of my other documents do. The letter was written to COB, according to the FSC, on March 12, 2013, as a result of the financial information that all credit unions are required to report to the FSC on a quarterly basis.

    According to the FSC, they made the discovery that COB was not in compliance from the financials that were submitted on March 7, 2013. What is strange is that this information has been sent to the FSC on a quarterly basis, without fail, from the inception of the FSC and they never noticed before. It is also strange that the matter only came to their attention when Government is scrounging around for money.

  26. @ Caswell

    It is serious. It either goes to the root of FSC competence as a regulator, or to the risk management and governance of the COB.
    More details should be put in the public domain, either by the COB or the FSC.

  27. Caswell Franklyn

    Hal

    It goes to the political interference in what is supposed to be an independent body. The non-bank financial institutions where credit unions invest their funds are all regulated and have been given clean bills of health by the Central Bank of Barbados. There was no problem with these investments by the Registrar of Co-operatives, the former regulator, or indeed the FSC before March 7, 2013. What has change? Did the FSC suddenly loose confidence in the Central Bank, and if so; what does the FSC know about the Central Bank that the rest of us don’t?

  28. @ Caswell

    I agree and it shows what lengths this government will go to to steal money from ordinary people, but they lack finesse.
    This form of regulation is similar to the choke and rob muggers stealing gold from tourists.
    The next big scandal is going to be the central bank defaulting on retail investors who have invested in gilts.
    Mark my words.

  29. Caswell…………….have you been able to form any opinions yet on why as much as 1 billion dollars of credit union members money runs the risk of being moved to foreign owned banks in Bim?

  30. @Caswell

    To be clear about what you are intimating. The FSC has been influenced to issue a directive to transfer deposits to banks because of some scheme to force credit unions to by government treasuries. Is this correct?

    Then the follow up concern is did the FSC Sir Frank Alleyne led Board approve?

    BU’s real concern is that the FSC has the right as regulator to direct those for which it has oversight. Did we not express outrage when the Supervisor of Insurance failed to exercise the right of the office under the Act. Could it be the FSC has seen a deterioration in the balance Sheets of non bank entities in Barbados? You are on record on BU being highly critical of Capita.

  31. Caswell Franklyn

    The FSC and the Sir Frank led board is one and the same.

    The credit unions have been allowed to make these investments for years by both the FSC and the Registrar of Co-operatives without any problems. Now that Government wants money, it is a problem. I am suggesting that there is more in the mortar than the pestle. I believe that this scheme is a ploy to force credit unions to help finance Government.

    You are correct, I have been critical of Capita in the past and will continue to do so but the FSC is not only giving the directive in relation to Capita.

    What I don’t understand is will the directive apply to the Central Fund Facility Trust which was set up by credit unions to assist credit unions if one of them finds itself in difficulty. The CFF is not a bank.

  32. @Caswell

    You concern is noted BUT because credit unions have been allowed over the years to deposit at will in non bank institutions does not logically support your argument that it must continue. The financial market post 2008 has changed not just because of CLICO by the declining economic situation.

    The credit unions need to exert their right to get a evidenced based response to the reason for the decision.

  33. Credit union members better stay on top of this, and i mean really on top.

  34. old onion bag

    I am reliably informed that this is not going down well with some members of the credit unions (esp.large ones)….as a matter of fact …some have decided to fight this ‘tooth and nail’ even to the point of the Law Courts,… the suggestion is who will be paying for those broken fixed deposits contracts, that are already entered into?….some as long as 25 yrs.

  35. In the real world, first you play, then you pay………….
    http://www.nydailynews.com/new-york/nypd-boss-bernard-kerik-prison-article-1.1356234

  36. The silence is deafening. Credit unions must speak out. If the regulator gets away with this this time they will come again.
    Look at how they raid the NIS fund.

  37. @Hal Austin | May 28, 2013 at 10:47 AM |

    “I agree and it shows what lengths this government will go to to steal money from ordinary people, but they lack finesse.
    This form of regulation is similar to the choke and rob muggers stealing gold from tourists.
    The next big scandal is going to be the central bank defaulting on retail investors who have invested in gilts.
    Mark my words.”

    Article in Toronto Globe and Mail today “As Valeant’s profile rises, tax avoidance will raise ire”

    http://www.theglobeandmail.com/report-on-business/rob-commentary/rob-insight/as-valeants-profile-rises-tax-avoidance-will-raise-ire/article12178611/#dashboard/follows/

    A bit off topic, but eventually the loss of tax revenue from the offshore industry (Valeant/Biovail/Melnyk et al) will leave the Government with a huge hole in its revenue/cash flow sources, and increase the need to “steal money form the ordinary people”

  38. Well Well.

    Caswell……….what a friend of mine alluded to today is that the credit unions will be forced to keep their money in the banking system and none of it can be invested outside of Barbados, whatever that means, maybe you have a handle on that.

  39. Caswell,

    As reported in the Nation, the FSC issued a written directive to credit unions advising that they must comply with the Section of the Act which restricts certain investments to 10% of the statutory reserve.

    The restriction on deposits is a different issue and hangs on the interpretation of the phrase ” a bank licensed under the Financial Institutions Act”. I do not believe that the FSC has issued any written directive on the matter of deposits held by credit unions, but maybe they wrote only to COB. Is that the case? What is the whole truth Caswell?

    Again as reported in the Nation, the President of the credit union League said that the FSC is working with them to get the matter resolved, perhaps by having the legislation amended.

  40. My apologies, maybe the clarification was not in the Nation:

    http://www.barbadostoday.bb/2013/05/22/credit-union-story-misleading/

  41. hello | May 28, 2013 at 9:40 AM |

    onions you running from this post?

    onion no comment from Owen on the raging war in and out of court between Payne and Hinckson. They are his fellow MP’s in Parliament the highest decision making body in the land not two year olds bickering over a shirley biscuit. Could it be he is in denial on the BLP implosion?

    Mia and Cynthia were conspicuous in their absence from Owen’s latest rant. Wife beater on the other hand made his presnce known.

    No Owen its not Barbados darkest hour its the BLP thats in a dark place.

  42. the govt injected 11million dollars in the economy yet the BLP yardfowls say the govt not doing nutting for the economy.. they would prefer to give 90million to the people to increased the import bill rather than to spread 11million across several countries which in return would bring in foreign exchange and not add another imillion to the import bill.. the govt plans a meeting to have talks about the economy and them mad .mad mad mad……even jeff broomes not so mad anymore wunna need to take a page out of jeff broomes book …Jeff Broomes wher are u the BLP need your help in recovery.. Please send them a memo ……

  43. @Caswell

    why didnt the other credit uniond get a similar letter?

  44. Caswell Franklyn

    Newblood

    You asked

    Why didn’t the other credit unions get such a letter?

    You are assuming that they didn’t. The FSC addressed a similar letter dated March 14, 2013 that I have in my possession to: “All Registered Credit Union Entities”

    Please speak about what you know and do not try to defend the indefensible.

    >

  45. Caswell,

    Does the March 14, 2013 letter from the FSC, addressed to all registered credit unions, mention anything about deposits?

  46. @Caswell
    u shold recognize by now that i ask questions or make staments to evoke repsonse, let me say to u, i saw the letter and the relevant sections of the act that was referenced. Amen

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