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November 15, 2006

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The officers of PSB and its management should all go to jail.

THE 7,000 DEPOSITORS SHOULD RISE AMASS AND PROTEST.

it would be nice to know who the recipients of these loans are. yes, name names please. i think we the public deserve to know the truth. afterall, $1 million of it is ours. so please, post names to go with these numbers.

so the total comes to $7.8mil in outstanding loans -less $23mil = $15mil plus unaccounted for. i'm wondering where did the CSPP's $1mil go toward. or is that another unsolved mistery? LOL!

Diakudengei, the report does not mention names. At a lunch with FIC board members yesterday hosted by the Palau Chamber of Commerce at PPR, a question was raised as to why not publish the name of the borrowers to which FIC brought up the issue of safety of the people involve at a time when the whole community is all riled up.

To be clear, I am a signatory to two savings account at PSB with a combined total of around $7,000. At the COC meeting yesterday, it was made clear that if there will be any disbursement of funds it will be for those whose accounts holds less than $2,000. If it's bigger than $2K,even if you get any, it will take years.

You know what ladies and gents, I believe this bank called PSB was created as a type of muti-level marketing "Pyramid scheme"....This is very similar to S & L savings and loan that ravages across U.S. in the 80's and early part of the 90's.
Though, all responsible parties {including board members,share holders, investors, etc} were investigated and prosectued to the full extent of the law of the land.

I concure with you all...we need to know who are the borrowers. So we can either have them pay their loans or reposses, or forclose their properties and homes to satisfy the outstanding loan debts.

I am willing to make a bet that the loans of upwards of a millions or more are for the business expansions,etc...check the major businesses who are connected to well known share holders....

I think Palau GOVT should call FBI or CIA to come in and investigate money laundering. By reading about all of these loan files, it becomes apparent that MONEY LAUNDERING was prevalent within this bank.

i won't be suprise if it turns out that most of loans we see here were loaned to major shareholders in anticipation of the closure of this bank. it explains the lack of proper documentation of most of them, and the management probably started shredding/burning a lot months before the closure.

FIC should try to check all the big stores in town and ask for record of somebody buying shredder in the last 3months.

ovbiuosly the management of the bank is trying to cover up something by not keeping proper loan documents on file.


Listen everyone, I have noticed one thing consistent with most of the loans. They have smaller original amount and then have a larger amount added to it without proper documentations to back up the loan; Here is what I am thinking: PSB was transacting loans through death people's outstanding loans, it may be macab, but it can happen with people who commit fraudulent acts.

I am sorry to say it, but what if someone has a loan account with PSB and then dies, and here comes the PSB banker to inflate the loan amount and dispurse it to themselves.....hence, lack of documentations, of course, a death person won't have a say and finally, if shareholders and owners of PSB gets caught, then the loans under death people will somehow find their way to be forgiven, obviously, no one would be paying on it...

Think about it.....

one can only look at all these figures..its processing and disbursement...and concluded that all staffs and management team at PSB are either illiterate or did not complete high school education.

it is appalling...

This is a glaring example of individual greed at work with disregard to our nation/people. Name names, let them be stoned and be spat in public. It's tar and feather time. They don't deserve the protection of the government they just screwed.

Thank you, Omdui, for the latest on the PSB crisis.

I am partially glad to see that some people- those with less than $2,000 combined assets- may get their monies back. But this is still far from a full remedy.

I am hotly pissed off to read HOD leaders choose to ignore the crisis, calling it a matter between PSB and FIC. Hello there, FIC has done the best it can before, during and after this mess. Do your job, HOD- as well as the
Senate- to pass the amended FIC Act so that FIC can immediately be empowered and resourced to address this mess and prevent similar ones from happening again. I truly hope the people/voters will see this point because this is the root of the problem!!!!

Palau just came off the global financial regulatory body's "blacklist" a couple of years ago,, and we can damn expect more pressure to enhance our financial insitution laws or else we're gonna see some tough sanctions from the outside!

WHY DID WE HAVE TO WAIT TILL A CRISIS OF THIS NATURE HIT US BEFORE THE OEK FINALLY UNDERSTANDS IT HAS NOT WORKED TO REPRESENT THE INTERESTS OF THE PEOPLE/VOTERS?

Yes, let us let FIC and the legal system do its job to investigate and hopefully prosecute those responsible for the "theft" of people's monies, but more importantly we need to focus on how to avoid similar crisis from taking place again in the future.

Like the Harley Davidson add, cool your pipes ORES...
The FIC was created to remove Palauan banks from the blacklist. Are you saying you buy the President's and the Senate's band aid solution of putting the FIC in a Managerial Receivership position. What would that do? In the same report to the COC the FIC also stated that the only cash money PSB has is about $45K...yes, try to let anyone operate a bank with that kind of cash, especially one in which the doors were chained. Oh, and the $1 mill deposited by Pension Plan, as if they had that kind of mulah, the Pension Plan was just bailed out a short while back. Just enough so the "in the know" could withdraw before we all got screwed...lol
Point is legislation will not put things in the right at this time.
Please do not encourage this continued practice of the National Government bailing out these private organizations. A better route might be creating a bank owned by the National Government, similar to FSM, this would address some economic and financial controls that we are currently lacking, as well as, be a source of added revenue to the National Treasury. My only peeve with the FSM Bank is that it is now the only bank that they have there, not good...
dor...lak om sal di omes ra imol chebiei

FIC needs to release the NAMES of this FOOLS! Alsekum eng meral tekoi kuase, te diak el MOTAOUT ra LACH le lechud a diak el specific malechub el mui lomtok ertial BLEKEREADEL! Ea da least they can do is RELEASE the names so they can all LOOK like fools which they are! I suspect every high ranking employees of the bank must have applied for some type of loan b/f the downfall. Dil elid el LOTOBED A NGKLIR m'bo dodengeii!

Fanguchi ma Nehi....I guess after all, ea "TELULCHOID RA MESEII" is SOLID FACTS and not just RUMORS as you SUGESTED! Better cross your fingers and hope neither of you are involve in this mess! BLIL A BEAB or SUBELEK FARM is WHERE THEY ALL BELONG!

And whats this Diaz saying will get our money back with in 15days?

i know kngibech...just a simple avenue of though..and not contagious.

Omdui,

could the decision to withhold the name of these borrowers create more problemz? these are public information..right? or, am i wrong?
what if some of these duped depositors finds out who these people are and take matters into their own hands? doesnt that create more chaos? if these are public information (i hope not), then the public has the right to know these people. perhaps knowing the names of these people can help ease the pain of not knowing.
come to think of it..not knowing why, how, what, when, and who these people are is a frustaration of unimaginable level. i hope no one gets his/her head bashed infront of PSB building..the heavily armed one.
funny...when it had lots of doughs, it wasnt guarded.

simple thoughts again..


but kngibech,
if i remembered correctly, ROP did had a sort of outlet store by the name of VEECA? that served all employees of national government? i wonder where it went..

great idea to have a bank at the national level..but, its fate just might ended up in myths..

i'll stick to BOH or BOG until such time i glimpse a local bank with FIDC stamped on all doors.. thank you.

A national bank? Please. Just go to BOH or BOG. Your money is actually INSURED there.

These people knew what they were doing.. no doubt about it. blil a beab is not deep enough for them. I think their names should be printed in the news paper. Then, again, someone is going to protect them because they are high officials. What about those people who are suffering from their actions? If they have small children, are they going to tell their children that Santa got robbed? Tirkal mle uaisei, how can they live with themselves?

and now i'm hearing an advertisement on wwfm about another bank called FIDELITY BANK, so i'm wondering if i should put my money there now that PSB is out of business. but before i do that can anyone tell me if this FIDELITY BANK is FDIC insured? how about it MR DIAZ? since you advertise their business perhaps you can give us an answer to that one. i'm really curious. thank you!

becherei;
Wake up girl... where have you been? These individuals certaily can live with themselves. Their greed, dishonest actions amla ruleterir meng diak care for the innocent/voters el chad ra beluu. I'm not talking about all of them. While you are there in Palau, take a look around and you will find out who's who in Palau. Check out their houses, cars they are driving,and by the way, the beauty shop, where their wives might be getting manicure and pedicure for the holidays.

I have never met Jonny Reklai but do me a favor and wish him merry christmas for me. I hope he goes to church.

they do live with themselves, they've been doing it for a long time, why should they feel guilty now? these people have not even an ounce of compassion toward their fellow palauans. did they feel guilty and embarressed when they took out a wooping 1.6 million dollar loan with out a proper application? NO! did they feel guilty when they built their huge houses and bought their expensive cars with those under the table loans? hell no! that's why we're crying for the HOD and senate to pass some kind of a bill or an act that can put "these nameless bastards" behind bars. seize their homes, cars, epensive jewelry, hell i don't care! i don't care if they end up standing at Surangel begging for a penny!

diakudengei,

What strikes my curiosity is the name "fidelity" bank. One of the largest or maybe the biggest "brokerage firm" in the world is called "fidelity." a reputable, multibillion dollar company with a lot of clout and many lawyers, ehehehe.

Now this so called "fidelity bank" newly established in palau, is it associated with fidelity brokerage firm that i mentioned above or is it not? If not, then it is diaz's responsibility to tell this bank ( fidelity bank ) to post a statement in their "advertising" that the "fidelity bank" here in palau "is not associated in any way, shape or form with the fidelity brokerage firm." in the United States. Otherwise this "ad" would appear to mislead the people of palau. it is crucial that diaz take a pro-active stand on this issue and do something about it.

thanks for your post my friend,

Ngaraardian

That was Paul Harvey, and this Alf-anso Diaz and the Pacific Savings Bank time now is.....Oops, there is no more Pacific Savings Bank.

What's next?

But on to a more serious note, my heart truly goes out to the the good folks who placed their trust and hard-earned money into PSB. Most of us live in the "paycheck to paycheck" mode, and many times we have to dip into our meager bank accounts. I can't imagine how difficult this situation is going to be on the "poor people like us" so let's hope our leaders will unite in making the PSB board and management to be accountable for their actions.

What is the latest e rebeluu? The devastating impact of this banking crisis is surely pounding on many households in Belau and will surely send some trembling shocks through the private sector!

I wonder what effec would this PSB crisis have on the pension plan (besides the fact that it had just trashed a million dollars into the "dobu")?

Ngera meng diak a mengerodch el kirel a action el blel take erngii a CSPP to loan the (lost) million dala?

While the appropriate officials are (hopefully) doing their jobs to secure the return of depositors' monies, we can be helpful by sending our concerns on how Palau will best avoid this kind of debilitating crisis in the future?

Mr. Ngaraard,

i hold a 403b account with Fidelity Financial Group in the US, and that's why i'm kind of wondering about this First Fidelity Bank that's being advertised by wwfm. is this a legititmate bank? or is it another PSB in the making? there's got to be something we can do to stop these fly-by-night thieves from preying on poor people like us. especially the older folks who don't read/write. and on top of that, our so called respected leaders are the front runners, paving the way for these kinds of schemes.

on a different note Mr. Ngaraard, what would you say to HoD Speaker Mesebeluu regarding the Del. Bells and the government of Ngaraard issue? i take it your from Ngaraard, and your input on the matter is greatly appreciated, wether you're a voter or not doesn't matter.

Ores:

The retirement fund is $30 million dollars in the red plus the money or contributions that they receive from current govt. employees is not enough to pay for the benefits of current retirees.If the fund were a bank, it would be bankrupt with nothing but IOU's. The best analogy one can use to describe the use of the retirement fund is like robbing Peter (retirement fund) to pay Paul (PSB) but the catch is Peter does not have any cash to begin with. You can also be sure that their has been political backroom talk about the Compact Trust Fund (CTF) and its direct(drawing down from it) or
indirect(using it to collateralize some kind of loan package)
use to resolve the crisis. Considering the number of palauans effected by the closure of PSB, resolution and the recovery of monies for depositors should take first priority. Who did what and what they did to get PSB to this position should be our last consideration. As in a case such as this, it is better to work back.

Joe, I think you're on to something. The CTF is a resevoir that will tapped next.

This PSB broblem is an inkling of what's to come comes after 2009.

We will be selling our lands to the Surangels, Nakamuras, Tmetuchls, Pierrantozzis, Rudimch's, Rechuchers, et. al.

First Fidelity Bank was formerly called Bank of Palau and still maintain the same location in PDC Building and still is a subsidiary of the PDC Group. It recently regained from FIC a full scale banking license to do do budiness in Palau. And no, it is not FDIC insured. I gather any local bank will not survive if it is placed under FDIC requirements.

Listen, As soon as my office in Palau is built, I will be buying lands in Palau and Rock islands..anyone who knows people who want to sell their land; I will buy based on a current Palauan market price at the time.

Of course, the land has to be 150% clear from any legal dispute with the court,Palauan clans, must be titled, owned individually and not binding with any banks, etc...

I am only buying big lands not small little lots...

Finder's fee is substantial and will be negotiated separately, when the transaction is completed. $$$$$$ :) :)

Be on the look out for AD's coming out soon...

gee..you are a billionaire! lol no problem! i'll hook you up!

thank you Fishy for clarifying that. i wouldn't have quessed that this is the same bank that went down as Bank of Palau and is now emerging under a new name.

i would not put my money in this bank. this is just another PSB in the making. what's even alarming is that another OEK senator is the president of the PDC group who is involved/connected to this bank just like Mr. Reklai is/was to PSB. so what else is new?

i sympathize with you..fishman.
we may never see local banks with FDIC at its entrance.

like the historical transition of the capitol to ngerulmud, this is also a history in the making... should it be called "the greatest loandryheist in palau"?

good point joe,
the people who are suffering from this incedent require hasty and peacefull solution to their lose. lets just hope if the national gov decided to help the needy, it also pursue this crisis to its conclusion, and put those responsible into their rightfull place.


Be carefull about putting your money in First Fidelity Bank...I know quite a bit about banking and based on my research, this recieves a "F" failure grade...Now that you have seen "PSB" fiasco,
If I were you, I would not touch it with a 50 feet pole. STAY AWAY....

If you find the urge to ignore your intuition and say the hel with it and be a depositor of this bank, do me just one favor, ask them if they are FDIC insured, and will they give you their annual report on the spot to review.

what you will look for is how much is their "reserve" {i.e. how much money do they have on hand at all times?}...How much loan do they have outstanding? Look for their monthly recievables, if is is 80% or more over loan outstanding.

One more thing, does the president have at least a financal background, like how many years of experience does he or she have with regards to banking. While your at it, ask them how many years of banking experience combined with all employees together. If it is more than 50 years, you are 1/4th safer to put your deposits in their bank...

Lastly, ask them how much money does ROP-GOVT have invested and who are the members of their bank that are not in PALAU.

What you are looking for are how many banking affiliate does this bank have.....what you are looking for is, who are themajor investors, like are there major banks, like investment banking firms, like merril lynch, bank of america, us banks, washington mutual, wells fargo banks, etc...then of course ask the manager, how many times, he perform audits a year...

All of this can be found in annual report, however, if the annual report is not given to you then this would mean, the bank is not part of what I have mentioned above and it is a franchise.

What this mean to you and I, "fly by night operations"...

What I have mentioned is a small part of investigation that little people like us need to do before we commit our hard earned cash to a bank...

Remember, some banks don't need a robber, they are themselves are banks and robbers...{like PSB}..so don't get sucked into it by your relatives, or word of mouth without doing some research yourself. To tell you the truth, your mother, brother, sister, and even your wife or girlfriend are robbers, with one wrong information, you loose all of your money, so be alert. Sorry to be so blunt, but most Palauans are easily persuaded by relatives or loved ones...:)...Listen to people who have mastered the field of your interest, rather listen to people who don't have any idea of what the field is all about"...[I.E. I would not listen to my relative about what to do with my investments, if all they know is putting their money under the pillow....

go get them.......if it pans out for you....then you are a winner....otherwise, uninformed customer is a looser...

I don't know what's going on in terms of the relevant authorities working to recover stolen customers' money from this PSB mess, but I am still bothered by the fact that CSPP "loaned" people's money to "save" PSB from becoming insolvent and illiquid. The process by which that loan was considered and approved should have been transparent, and whether or not the "loan" turned out bad is irrelevant. The governance implications of this transaction and process ought to be immediately reviewed, especially with the revelation that this publicly-owned entity is in "red" and had been undertaking some rather under-handed actions. If it's truly 30 plus mil in red, why in banana did it extend the loan? What were the board members of the pension thinking? They let down and undermined their fiduciary/trustee responsibilities when they approved the loan. CSPP management ought to be investigated, too. It's another mess in the making, and it's got to be stopped before it's too late. Let's learn our lesson from Saipan- didn't the pension members take the amdministration to court for their pension body's plan to bail out their utility corporation with a $40 mil loan? I think they were successful in protecting their assets from being squandered on unproductive operations.

All the imminent tasks associated with this PSB mess ought to be resolved simultaneously and not sequentially. Going after the crooks could be timely helpful for recovering some of the stolen/lost investments of the customers. I just think putting the task for later would provide them too much time to further squander or hide their stolen "treasures."

Kuk di udesuek e doluluuch el kirir ar mla mecheblad e mrechorch a ududir.

There ought to be a people-led coup if any decision is made to tap into the compact trust fund to save PSB or the pension fund!!!

Billionaire:

thanks for the banking advice.

I talked with a former FIC board member re First Fidelity Bank, former BAnk of Palau, and the person actually said that Bank of Palau had lots of assets. He further mentioned that during the time it was closed, the people who had accounts there were able to withdraw their money. So this PSB problem is much more serious because people ccannot withdraw their money.

In any case, we should always bank with Uncle Sam.

Looking at these numbers and the amount of loans, maaaan some of these people must have the life of the rich and not so famous people. i think they should list their names so at least we know who's been stealing from the churches, private school the government and the people of palau. i mean one million from pension plan was only there for twenty eight days and now its gone. as soon as the check clear they took the cash and run. the public should know who these people are...

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