The government here is paying careful attention to the current crisis engulfing the Stanford Group headed by flamboyant Texan, Allen Stanford after it was discovered that at least one major institutional investor in Georgetown had invested with the company.
This was confirmed by a senior Finance Ministry official yesterday who told Stabroek News that the situation is being carefully monitored.
The official told this newspaper that the problem was not systemic and consequently there was not much cause for alarm. It is unclear exactly how much money was invested by the investor.
Several West Indian cricketers are said to still have money invested with the Stanford Group.
Stanford Group subsidiaries across the world have been put in a spin since its assets were frozen in the US after the Securities and Exchange Commission charged Stanford and several of his employees with fraud in the amount of US$8B. (See story on page 4.)
The freezing of accounts at Stanford subsidiaries could lead to a long, complicated process for funds to be unfrozen as claims pour in and the extent of the problem emerges.
