Ncb closes cash plus accounts

The Supreme Court recently ruled that the national commercial bank could close 17 of the 27 accounts that cash plus has opened with them. Cash plus has tried to down play this blow stating that the accounts that the judge told NCB to close were just for its subsidiaries not cash plus it self.

If you remember cash plus had an injunction to prevent NCB from closing its account but this was appealed by the bank and they successfully landed another critical blow on cash plus. The injunction stays in effect however, keeping the remaining accounts open (read story here).

I was watching the news and of course in light of the new developments cash plus clients converged on the cash plus offices again concerned about their money. There was also picketing of the NCB bank in Half-Way-Tree. The picketing looked a little more organized compared to the shabby-flimsy protest I saw before. It seems the anger from cash plus members are now targeted not just at the banks but also at the government who recently came out in support of the financial securities commission (FSC) after the ruling late last year by the courts giving them the hand to issue there cease-and-desist order.

It is clear to me that it is very hard fighting the establishment. The financial services commission, The Bankers Association of Jamaica and of course the government is on their side. Each complementing the other and working in synergy. There is an interesting war of words going on between finance minister Audley Shaw and opposition spokes man on finance Omar Davis. Basically Davis is calling Shaw a hypocrite for his government supporting the actions of the FSC but criticized Davis last year when he was finance minister for going after Olint, the same thing they are doing now to all investment clubs.

There was an interesting article in the observer today, I found it online(click here). The minister was speaking at the Mayberry Investments monthly investment seminar at the Knutsford Court Hotel where the minister hinted that there might be something in the pipeline that will once and for all regularize all alternative investment. Here is apart of what he said:

“Transparency will be the order of the day in Jamaica. We are not asking companies to give up their trade secrets. If you are trading the Yen against the Euro or the Pound against the US dollar, you don’t have to tell us your strategy. What we will require, however, is your profit and loss statement. We will require your balance sheet and we will demand that you prove capital adequacy.”

This statement is more inclined to Olint, Warner Higgins and World Wise who trade FOREX. Its interesting to see also that local financial institutions here in Jamaica are now sending their staff to learn how to trade currencies, although some were already trading currencies. It was reported in the Jamaica Observer article (link above) that Scotia parent company bought Freedom Traders Securities which is a currency trading outfit catering

to the north American populace. These banks are “mashing up” little Olint and world wise then turn around and do the same thing they are opposed to. Can somebody say, bad mind, hypocrites.

Now from my own experience I can assure you that if you are an individual trader you know well the ups and downs of the market. You can make a lot of money and you can loose your shirt. This article appeared on the Jamaica Gleaner website, the story chronicles the story of a trader gone bad. Well known businessman Richard Azan lost a lot of money trading for his self and clients. He caters to the uptown high end crowd where the minimum entry level starts at $25,000 USD. Now most ordinary Johns and Janes like me would have never heard of this elitist investment club if it didn’t get hit by a trend train causing one of its prominent client crying foul after loosing quite a bundle. I don’t think Mr Azan traded currencies but it’s still within the area of discussion of the current hype about alternative investment clubs. (read story here)

I notice that alternative investment clubs have been following cash plus by polishing their image and looking more official and legit in the public’s eye. I saw an ad in news paper where Olint is co sponsoring the Air Jamaica Jazz and Blues Festival, they also donated money to a charity I don’t remember which charity. World wise plays a sponsorship role in the Miss Jamaica Universe Pageant and of course cash plus is the title sponsors of the premier league.

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~ by RB on January 19, 2008.

4 Responses to “Ncb closes cash plus accounts”

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