Butterfield faces US$1/2million suit, watchdog reports

| 24/03/2011

(CNS): The online watchdog OffshoreAlert is reporting in this month’s newsletter that the Bankruptcy Trustee of a Cayman Islands-domiciled hedge fund is suing the Cayman and Guernsey operations of Butterfield Bank for $561,863. The newsletter reveals that the complaint was filed at the US Bankruptcy Court for the Northern District of Illinois in October last year by Ronald R. Peterson for Lancelot Investors Fund Ltd. and affiliated parties. The suit states that the liabilities of Lancelot Ltd. at all times exceeded the value of its assets. The suit claims that the cash is a fictitious profit as a result of the “Defendant’s investment” in the bankrupt fund.

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  1. Loren says:

    What is happening at Butterfield Bank and what does this means in terms of more job cuts or higher chances of foreclosures? this is very scary the public needs to know so that we can make alternative plans.

    • Adam Smith says:

      This is obviously written by either a poorly performing employee of the bank or someone who is defaulting on their mortgage.  From their lack of understand about costs and bottom lines I hope they have an alternative career plan.

      Depositors and investors in Butterfield should welcome the recent job losses as reducing costs and it has clearly trimmed the fat and lead to a noticeable improvement in client facing customer service. 

      Foreclosures should be accelerated by all the Cayman retail banks but alas our laws are backwards when it comes to swift and efficient realisation of defaulters’ properties.  The result of this is increased mortgage costs for the honest and regular payers.

      Our retail banks need to employ less front end staff, improve local computerised banking services and lobby for better laws for debt collection, personal bankruptcy and mortgage enforcement.