De-Risking in Jeopardy 3

Another name now looks like being added to the growing list of banks that have moved to protect their brands and their own institutions by de-risking.

This time Canadian Imperial Bank of Commerce appears to be in the process of shedding CIBC First Caribbean International Bank, which it had formed with Barclays Bank - in 2002. Barclays then moved to protect its brand and interests by shedding the last of its shares and totally withdrawing from the region in 2006.

According to various South American media sources the intention is to dispose of 70% of its shares for US$2.2 billion to the Gilinski Group, a Columbian entity with widespread interests across the zone. This may be the forerunner to CIBC following Barclay Bank's lead by disposing of its risks and liabilities entirely.

On that note, it will be interesting to see how CIBC First Caribbean International Bank and the Canadian Imperial Bank of Commerce report and record the ongoing legal action by H.M.B Holdings Limited relating to the "conspiracy to commit fraud" claim against the Government of Antigua & Barbuda, Replay/Freetown and the First Caribbean International Bank in its current dealings.

CIBC First Caribbean claims to be the largest group in the English / Dutch-speaking Caribbean with more than US$1.2 billion in equity and US$11.5 billion in total assets as at July 2019. The Bank says it has over 2700 employees, 57 branches, 22 banking centres and seven international offices in 16 regional markets.

This acquisition is said to include locations in sixteen Caribbean countries including its headquarters in Barbados and offices in Antigua, Bahamas and Cayman.

Jaime Gilinski is listed as a billionaire banker and real-estate developer, who apparently resides in the United Kingdom and is listed by Forbes as the second richest person in Colombia.

In the 1990s, Gilinski acquired the Colombian assets of the rogue Bank of Credit and Commerce International (BCCI) following its global collapse and through a series of subsequent mergers and acquisitions, has become the main shareholder of Banco Sabadell, which is the 5th largest bank in Spain.

In his article captioned "Business community stands to lose from de-risking" dated 26 October 2019 he recognises that it is ordinary citizens and business that will suffer the consequences. He blames the banks for withdrawing, stating, "Banks are being made to comply by regulatory bodies and Central Banks. All this is necessary to persuade correspondent...