October 23, 2019

The Editor Speaks: CNB Directors windfall

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The majority of the Directors of Cayman National Bank have, not surprisingly, recommended the sale of the Bank to Trinidad and Tobago (Barbados) Limited.

Lawyer and former MLA, Truman Bodden has 1,125,135 shares and has agreed, according to a circular, to sell 1 million of them. This should provide him with a huge nest egg approaching $7M.

Very nice.

However, and his family, who together hold over 1.34 million, are not going to sell their shares.

Wow.

It is a very good deal Republic Bank is offering – $6.25 per share for the sale. This is, according to the Board of Directors, the highest the shares have been for ten years. The day before the bid was made the shares were trading at around $3.

It remains to be seen how the remainder of the shareholders are going to vote. If the bank is sold the will not have a wholly owned Caymanian retail bank.

Does that mean anything?

In a world where money means the most, prestige doesn’t hold a candle to the rich. With being rich also comes power. And with power you often become rich.

Will the Cayman Islands suffer if the country doesn’t own a bank? A country where money talks all the time.

Is it going to knock our high rating as a world banking centre?

I don’t think so.

The average person on the street is mainly horrified if CNB is sold.

We are selling our grandfathers’ legacy down the street is a valiant cry.

How many of these people crying this are major shareholders or even bank there?

Is there something prestigious when you tell people I bank at CNB?

Who would you rather be? Someone with $1,000 in your CNB account or someone with $10,000 in another bank?

Even if CNB is sold the name will not change says Republic. There is the prestige in the name.

And that prestige, though, doesn’t equate to any monetary windfall at all.

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