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...