Feb. 18 (Bloomberg) -- Stanford Bank (Panama) SA, an affiliate of Stanford Financial Group, was taken over by government regulators, La Prensa said, citing an interview with Ramon Martinez Stagg, the unit's executive president.
Clients will be allowed to withdraw funds and the bank's assets will by put under administrative control of the country's bank superintendent, the Panama City-based newspaper reported today.
The Panamanian bank has sufficient assets that can be quickly converted to cash to meet client demands, Martinez said, according to La Prensa. The bank has three branches and 66 employees, the newspaper said.
The U.S. Securities and Exchange Commission this week accused R. Allen Stanford of running a "massive, ongoing fraud" through his Houston-based Stanford Group. Co., while selling $8 billion in certificates issued by an affiliated bank in Antigua.
To contact the reporter on this story: Eric Sabo in Panama City at esabo1@bloomberg.net. Last Updated: February 18, 2009 08:51 EST
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