The run on Stanford's bank in Antiqua

[shraby]

and the fact that Venzuelans have money there too, makes me wonder about all the offshore banks in the Cayman Islands, etc. Those might not be as solvent as the big depositors think. mmmmmm?

[malaise]

1. Venezuelans are in a better position in the Stanford bank

in Venezuela since Chavez passed laws preventing foreign businesses from exporting profits. Venezuelans have over $2.5B in Stanford's bank.

http://www.cnbc.com/id/29257314
<snip>
In fact, it was a Venezuelan economics magazine, VenEconomia, that first sounded the alarm about Stanford Financial. If you speak Spanish you can read about it here but a good explainer in English is here.

As for the thousands of small depositors who had their money in bank accounts in Stanford in Venezuela--they may actually be OK.

The capital controls put in place by Chavez would mean any deposits Stanford took in, couldn’t be taken out of the country. It’s a frustration for many American corporations doing business there—they can’t repatriate profits.

That is unless Stanford had some kind of deal with the Venezuelan government. The tentacles of this alleged case of fraud could be long and run very far south.
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Don't forget it was the Venezuelans who exposed Stanford Bank first...for espionage late last year.

[kirby]

2. What makes you think a law matters?

Why would a law preventing money from being 'exported' matter in this case? They money may have been removed in violation of the law and is gone. Or more likely, the money never existed except on paper because it was a ponzi scheme similar to Madoff.

[malaise]

3. Well 'never existed'

is a serious problem. :D