More financial turmoil | Arkansas Blog

Tuesday, February 17, 2009

More financial turmoil

Posted By on Tue, Feb 17, 2009 at 11:18 AM

News breaking today of what the SEC is calling "massive ongoing fraud" in the sale of about $8 billion in CD's by the Stanford Financial Group's bank in Antigua. Bloomberg is reporting that the bank has placed a moratorium on early redemption of the CDs. The SEC has questioned unusually high rates of return on the CDs and has said it cannot find the $8 billion in assets.

There's a potential local angle. In addition to the bank, Stanford manages assets through a brokerage unit with some 30,000 clients. Stanford Financial has an office in Little Rock. It referred questions to a corporate spokesman, who was unavailable when I called.

This thing is going to get big. A billionaire Texan at the top. Paying court to politicians. Hobnobbing with British royalty. Etc. FBI raids reported in Texas and Memphis.

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