We should expect the 65% of BoB's shares owned by the Bahamas Government and Quasi Government Corporations to subscribe for their shares for $26 million ($40m x 65%). These funds will either come from National Insurance or the Governments General Fund.

All functions of the BoB can be handled by privately held retail commercial banks except for providing banking services to the web-shop industry.

Therefore it would not be unreasonable to conclude that the $100 million guarantee provided by Resolve Inc. in exchange for large defaulted loans and the current $40 million rights issue is made to provide banking services to the $400 million web shop business.

BoB should be liquidated and liquidated immediately.

The investment of National Insurance Pension Funds into a bank that does not meet minimum Central Bank capital requirements can be considered at best gross negligence on those that have a fiduciary responsibility to the Bahamian Public. This includes the Big4 accounting firm managing Resolve and the Directors of Resolve.

However, due to the non separation of powers between the legislature and the executive nothing will happen. We have been sold out by our professional class for "30 pieces of silver".

Similar dereliction of fiduciary duties is having a different result in Brazil where the President was recently removed from power. See Bloomberg article below:

Brazil Police Carry Out 127 Court Orders in Pension Probe (Bloomberg 9/5/16)

Monday, September 05, 2016 06:42 AM
by Giulia Camillo
(Bloomberg) -- Brazil federal police actions based on 10 cases revealed as a result of probes of pension fund deficits, according to e-mailed statement.

Of those 10 cases, 8 are related to fraudulent or reckless investments by pension funds that were made through private equity investment funds

Says there’s evidence of organized criminal groups among business leaders, pension fund managers, companies that rated assets and private equity investment fund managers

Operation targets frauds in Funcef, Petros, Previ and Postalis

Police are carrying out court orders for 7 temporary arrests, 106 searches and 34 testimonies
Court orders being conducted in Sao Paulo, Rio de Janeiro, Bahia, Espirito Santo, Rio Grande do Sul, Parana, Santa Catarina and Amazonas states and Federal District
Court also ordered seizure and freezing of assets of 103 targeted people and firms, estimated at 8b reais

Operation called Greenfield

I agree BOB should be liquidated but it should not be done immediately. That would prove too much of a shock to the banking system and might precipitate a run on banks that would be difficult to contain. This is a royal mess, bob owes depositors 684 million, and as of second quarter figures only has 120million in liquid assets.

BOB could sell its loan portfolio but 35% of that is non accrual loans. No matter how generously you calculate it BoB assets are at least 200 million short of making depositors whole. And that is being generous. This bank is for all intents and purposes insolvent and would have collapsed but for government support. The irony is that it is govt involvement that helped run it into the ground, and now only govt involvement keeping it alive.

What should be done is to develop a credible plan to slowly liquidate this bank, selling off assets, trying to make depositors as whole as possible. Bahamians should remember that depositor insurance in this country is only up to $50,000 in a single account. Why persons continue to place deposits in this bank when so many other safer options are available is beyond me.

BISX too really needs to be more timely and transparent in informing the investment community. Information is money on a stock exchange and information is not provided to the investment community in transparent, egalitarian and timely way.

We are more than two months past the last end of most companies second quarter June 30 and almost none of the statements have been posted to Bisx website. This is unacceptable. BISX needs to set firm reporting deadlines and stick to them. For example commonwealth bank has its second quarter results posted on its website but BISX does not, this is unacceptable. ICD several weeks ago in the newspaper published just a snippet of its second quarter results. They are obviously completed But to this day they have not been reported by BISX . This leads to an erosion of confidence in the local market and increases the likelihood of insider trading on information that should have long ago been made public.

BISX please FIX this reporting nightmare, and fire whoever is currently responsible for reporting company financial statements because they are incompetent.

Important points DonAnthony.

Realistically, the only entities still placing deposits in BOB are those whose salaries are assigned there for debt service, government agencies such as NIB, and the numbers boys, because this is the only bank that will take them. Any one else who chooses to do so, say good bye to your funds.

So the politicians want to jail an employer for firing staff yet expect nothing to happen when they run a public asset into the ground? The people of this country are getting swing bad, my lord, they getting grind hard!

BISX is a rogue organisation. A laughingstock and a joke that aids and abets criminals and white collar crime. BISX itself should be disbanded.

Agreed Banker. BISX is complictos in this gross negligence. A truly independent stock exchange would have delisted BoB shares long ago.

However BISX is financed by the government so it is not independent, it is in the same position as the NIB Investment Board, BoB, Resolve, the Executive and the Legislature.

This will all end very badly for the Bahamian people as their pension funds are squandered.

Before talk of liquidation must be diagnosis or PUBLIC INQUIRY as to why and how and who and when and what happened to reach this BOB state of affairs. ACTUALLY the Bank of the Bahamas should be a national concern as PRIDE as a NATIONAL BANK IN THE GLOBAL FINANCIAL COMMUNITY bearing the name of the BAHAMAS representing the best this well established sovereign nation with decades of experience in the financial community with proactive legislation. BOB should be the showcase bank and persons doing business with NATIONAL PRIDE. Sadly the pressure groups or political parties seem more focused on preventing foreign BAHAMAR from getting started and creating jobs for taxi drivers, construction workers, persons buying gas to put in cars to go to work at BAHAMAR paying gasoline tax, and work to thousands, straw vendors, international Travel Agents, people paying NASSAU airport taxes etcetcetc rather than offer solutions or investigations to this NATIONAL BANK where many of them in the 1,000's already do business with, are customers, lawyers, business persons, savings account holders, shareholders, some 4,000 etcetc. WHERE IS THE NATIONAL PRIDE in trying to investigate the NATIONAL BANK OF THE BAHAMAS and MOVING FORWARD with an INVESTIGATION??????????

We Bahamians seem to have lost our pride. We all expect, and know deep in our hearts, that anything our government touches will fail. We know our leaders our incompetent and corrupt and we know that after the next election we will still have useless, spineless, and corrupt leadership not only in the house of assembly, put perhaps more importantly, running our public institutions.
Our faith has gone along with our pride.