Why was a profitable division of CLICO sold off?

Dear Barbados Free Press,

I don’t pretend to be knowledgeable about high finance or corporate affairs, and therefore I have to look at situations on a simple level. I’m having difficulty understanding something about how the powers that be handled the CLICO debacle. Here is my observation and questions:

In the current issue of Barbados Today, the news article “Upturn” says,

“One year after being rescued from under the beleaguered CLICO Holdings umbrella, Capita Financial Services, formerly CLICO Mortgage and Finance Company, is projecting a profit of just over one million dollars at March next year.”

Barbados Today Upturn

Why would the trustees of the CLICO mess sell off a profitable operation?

To my mind it would make more sense to hang onto it. The profit from this successful operation could have been used to shore up the rest or at least reduce the damage to policy holders who were ripped off.

That is unless the vultures saw an opportunity to grab a profitable piece of the company at the expense of the already-victimized policy holders.

Can someone please explain why this selling off of a profitable piece of CLICO was necessary and how it was good for the victims of Mr. Leroy Parris and Mr. Lawrence Duprey?

Thank you,

A fellow victim

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7 Comments

Filed under Barbados, Business & Banking, Consumer Issues, Corruption, Offshore Investments

7 responses to “Why was a profitable division of CLICO sold off?

  1. fellow victim

    I think you have got it down solid

    The only questions are who owns the new vehicle and who got special fees and. who were the Trustess acting in the best interests of the policy holders
    or their existing or new paymasters.

    Is this more information not available to the victims only to those that profit from conflict of interest or corruption?

  2. not a fan of clico

    the reason was to get cash to propup the failing clico. there was no money so the cash would clear some debts and pay to keep the opperations running.

  3. Alice in Dreadland

    Precisely @not a fan of Clico

    It was a ‘fire sale’. When trouble comes & your creditors are knocking at your door the first things to sell off are the assets which can realise fast cash. If you are the average householder that might mean selling your car whereas if you are a business that might mean selling of a profitable piece of the operation.

  4. 209

    The CLICO debacle is a kinda “Trade Confirmers v 2.0”
    -money down a hole.

    Nothing to see here: you lost yer money: move along now: kiss it goodbye: back to work(literally!): no retirement for You!(a la Soup Nazi)

  5. 213

    That is so sad 209, while Leroy Parris & all his henchman & women living a life of luxury, and not one 0f them doing jail time or being brought to justice.

  6. millertheanunnaki

    IOne keeps informing the leader of the BIPA, June Fowler, that the association needs to monitor the fees and charges levied by the JM’s. You guys are being taken for a big ride and it will be so costly as to leave you with not even pocket change to catch the next bus home. CLICO assets are valued even below net book value in a depressed economy and sliding real estate market. Keep an eye on the vultures!

  7. Green Monkey

    Beware corporate psychopaths – they are still occupying positions of power

    By Brian Basham

    I’ve met my fair share of monsters – rogue individuals, for the most part. But as regulation in the UK and the US has loosened its restraints, the monsters have proliferated.

    In a paper recently published in the Journal of Business Ethics entitled “The Corporate Psychopaths: Theory of the Global Financial Crisis”, Clive R Boddy identifies these people as psychopaths.

    “They are,” he says, “simply the 1 per cent of people who have no conscience or empathy.” And he argues: “Psychopaths, rising to key senior positions within modern financial corporations, where they are able to influence the moral climate of the whole organisation and yield considerable power, have largely caused the [banking] crisis’.

    And Mr Boddy is not alone. In Jon Ronson’s widely acclaimed book The Psychopath Test, Professor Robert Hare told the author: “I should have spent some time inside the Stock Exchange as well. Serial killer psychopaths ruin families. Corporate and political and religious psychopaths ruin economies. They ruin societies.”

    Cut to a pleasantly warm evening in Bahrain. My companion, a senior UK investment banker and I, are discussing the most successful banking types we know and what makes them tick. I argue that they often conform to the characteristics displayed by social psychopaths. To my surprise, my friend agrees.

    He then makes an astonishing confession: “At one major investment bank for which I worked, we used psychometric testing to recruit social psychopaths because their characteristics exactly suited them to senior corporate finance roles.”

    http://poorrichards-blog.blogspot.com/2011/12/beware-corporate-psychopaths-they-are.html