Refco Inc – Guatemala Bancafe Bank Scandal Has Barbados Link


Collapse & Fraud At Commodities Broker Refco Inc.

Barbados Central Bank Will Step In

Conflict Of Interest – U.S. & Guatamalan Politicians Tied To Scandal – Who’s Next?

“Refco is a large foreign exchange and commodity broker providing clearing and execution services for global exchange-traded derivatives including futures,’..” … from the Refco website (link here)

When those international houses of cards take a tumble, the casualties and fallout usually spreads around the world and high into governments and financial communities. This collapse is no different.

The entire Guatemala banking system has been shaken… and the tremors and aftershocks are starting to arrive in Barbados.

Excerpts from Reuters…

Guatemala Suspends Bancafe Bank Operations Over Refco

GUATEMALA CITY, Oct 20 (Reuters) – Guatemala has suspended operations in Bancafe, the country’s fourth largest bank and owner of $204 million of U.S. Treasury bonds held by bankrupt commodities broker Refco Inc….

“The board unanimously resolved to suspend operations in Bancafe due to financial problems derived from the investment of $204 million in the brokerage Refco,” de Bonilla said at a press conference.

Bancafe has about $900 million in deposits, a million account holders and assets worth about $1 billion, Guatemala’s banking regulatory body says.

Bancafe is a part of financial group Grupo Financiero del Pais and is not connected to a state-run bank with the same name in Colombia.

Eduardo Gonzalez, chief of staff for Guatemalan President Oscar Berger and a pre-candidate for 2007 presidential elections, is one of the bank’s major shareholders.

Guatemala’s Monetary Board said it decided to intervene in Bancafe “to protect the liquidity and solvency of the national banking system and to secure and strengthen national savings.”

…The bank has offshore holdings in Barbados valued at around $240 million, but these deposits no longer have the backing of Bancafe and will not be covered by the government’s recovery plan, Zapata said.

The Central Bank in Barbados will be responsible for managing those funds, he said.

… read the entire article link here.

Now The Fund Starts – Politicians All Over The World Run For Cover

According to the Portland Independent Media Center (link here), the first casualty appears to be US Illinois Congressman Jerry Weller, who took Refco campaign contributions and look the other way as they ran an international penny-stock “pump and dump” fraud.

The second casualty will be US Senator George Allen, who not only took campaign contributions but actually worked with known Israeli con-artists in the Refco Xybernaut penny stock scam.

There are tons of politicians who will fall in Guatemala. Bermuda, Austria and Israel have all received honourable mention, but what about Barbados?

Did Any Barbados Politician Take Campaign Donations From Refco?

I don’t know. Its not like we publish campaign donations online here in Barbados. That would be way, way too transparent. Might cause accountability.

Can’t have that on this island!


Filed under Barbados, Business & Banking, Offshore Investments, Politics & Corruption

15 responses to “Refco Inc – Guatemala Bancafe Bank Scandal Has Barbados Link

  1. Anonymous

    Did Any Barbados Politician Take Campaign Donations From Refco?

    I don’t know.

    then why mention it?

  2. BFP

    Why mention it?

    The point is… we will never know one way or the other because of the total lack of transparency and accountability surrounding campaign donations in Barbados and everything else!

    You government types just don’t get it… and you don’t want to.

    But you have a problem… Bajan citizens are starting to wake up.

  3. Yo!

    Oh dear!
    Look whuh gone en happen!

    No wonder Anon. is upset.
    His People stand to suffer a bit of bad press from scandals such as this.
    – not good!

    This could involve Sam Poochie
    – and even D.Duppie!

  4. Economix

    There will be no ‘casualties’ as a result of this, not here in Barbados. Our fellas are better than that. And even if there’s some heat, bear in mind that the guys in power all have that big tattoo on their chest.
    It says CHUBB….(the fire-proof safe people?)
    In other words, they simply can’t be fired, and they have the cajones to stick this (and worse) out!
    West Indian politicians know nothing of the quaint British procedure, whereby one “does the right thing” – and resigns.
    Please could someone provide one instance where a Post-Colonial Barbadian politician ever resigned?

    There will be no particular fallout, and elections are not until well into next year 2007, by which time this will all have been glossed over.
    All is well. Don’t worry.

  5. Green!

    Did Any Barbados Politician Take Campaign Donations From Chefette?
    I’m not sure

    but thought I’d mention it,anyway.

    The colour of Loyalty, Green!

  6. out dey in Bim


    I believe Barbadian politicians are relying on the docile,’doan like no trouble’ bajan to just complain on these sites or talk among ourselves,but unless we take public stands – e.g. a private citizen renting the jubilee gardens bus stand or Trimart car park in Haggatt Hall and hold a public meeting.
    Or persons en mass complain on radio and tv and even call the newspapers.
    Who says we have to stick to traditional methods of ole talk which ent wukking anyway.
    If muhammed can’t go the mountain,let the mountain go to him.

    Set the bar for the opposition,and demand more from the media,and most of all frighten the hell out of the gov’t.

    People are too comfortable once they get their mortgage or loans paid and could take a yearly trip to N.Y. to shop.
    However our forefathers were more determined because they were fighting for their survival and the survival of their generations to come – they needed to vote,they needed to get people looking like them in the parliament to put ‘their’ issues on the agenda,but what we fail to realise is what they fought and work so hard for we are slowly and yet not so slowly loosing under this BLP administration – with no apologies from them.

  7. John


    They had a fella up in Jamaica the other day who actually resigned …. but then the evidence must have been too difficult to sweep one side.

    Panday down in Trinidad end up in jail, …. but I am not sure he is actually in jail!!

    So, there is some hope on the, no, over the horizon.

    Here, no I can’t think of any, the most I could think of was the BLP fellow who had to run out of Barbados back in the 80’s I think so you could say he kind of resigned.

    Some of the DLP fellas came close with Duffus and the St. Jo enquiry but really none of the whole set of BLP or DLP got any shame!

    I think if it ever came too close to one of the fellas he would run out of Barbados and disappear …… with the stash held in some offshore bank account.

    Bajans were always known for the ability to save for a rainy day.

  8. out dey in Bim


    What has happened to my post?”Your comment is awaiting moderation” is still up.What does that mean?

  9. out dey in Bim

    Haven’t heard from you if awaiting moderation means you are censuring something,since my posts are usually sanitised.

  10. BFP

    Hi Out dey in Bim

    When all of us are at work (there are four of us who can edit and approve comments) then we sometimes don’t get to moderating for a whole day… or in this case about 7 hours.

    I think your post is up now. No idea why the computer grabbed it for moderation. It is not something we have total control of.

    The delay just can’t be helped sometimes. One of us usually works nights, so he moderates during the day usually… but we all have real lives and BFP is just a “hobby”.

    Hope this clears up the point. We sure try to let all comments – pro, con, good and bad, supportive or angry – all be posted.

    Thanks for your most thoughtful post. You often contribute in a serious manner and that is appreciated by all.


  11. Rumplestilskin

    Green:, re your question:

    interesting question, but who are the Directors of the company….I wonder.

  12. out dey in Bim


    Thanks much.Was a little concerned at first since I didn’t want to cross any boundaries – real or imagined .Thanks for you kind comments on my post.

    Appreciated greatly and explanation accepted.

  13. Dave Allamby

    I was just told about your paper and after reviewing it I find it is exactly what the Barbados society needs a public forum that calls a spade a spade instead of covering up the facts as the Advocate and Nation does.

    Until the Press in Barbados tell the truth ask hard questions about contradictory matters that are no more than Propaganda things there will never change.

    Here are recent articles about how well the police in Bim are doing their jobs but one thing that amazes me is in the last three or four drug interdiction actions off the East Coast and recently the South Coast only the Boats and the haul is taken into custody. The criminals all get away. I find that strange.

    In ending prior to today I could not get youe website to come up.

  14. Austrian Union members lost billions in this scam. The wife of a former executive of the Refco tied BAWAG bank in Austria has written a book about the hidden secrets of this financial disaster. Her name is Ruth Elsner: