Dec 02 2009

US Senators: No Loans Until Antigua Cooperates In Stanford Case Article

Wall Street Journal

A group of U.S. senators said the government of Antigua and Barbuda should be punished until it cooperates with the U.S. and compensates the victims of disgraced financier R. Allen Stanford's alleged Ponzi scheme.

Sen. Richard Shelby (R., Ala.) and seven other lawmakers on Tuesday introduced a resolution urging Treasury Secretary Tim Geithner to direct the U.S. executive directors to the International Monetary Fund and World Bank to oppose any new loans to Antigua and Barbuda, which is alleged to have accepted an $85 million loan from Stanford.

The Securities and Exchange Commission's inspector general said in a recent report that regulators in Antigua obstructed the agency's probe into Stanford's activities.

"It is absurd that the Government of Antigua and Barbuda is standing in the way of helping victims, while also holding out its hand for funding," Shelby said in a statement. "This resolution makes clear that the United States will not accept such behavior."

In addition to Shelby, the resolution is being introduced by Sens. David Vitter (R., La.), Kay Bailey Hutchison (R., Texas), Thad Cochran (R., Miss.), John Cornyn (R., Texas), Johnny Isakson (R., Ga.), Roger Wicker (R., Miss.), and Jeanne Shaheen (D., N.H.).

"As long as the Government of Antigua and Barbuda holds assets of Stanford that are not available to the U.S. receiver, it should not receive any funding from the U.S. or the IMF and World Bank," Isakson said. "The injured American families deserve no less."