EPB / Euro Pacific Bank entered negotiations for the continuation of their bank operations?

[arwell]

Hello there,

does anyone know what is currently (status as of July 25, 2022) happening with EPB? On their landing page there is popping up a warning as follows:

BANKING STATUS UPDATE: JULY 25, 2022
As you may be aware, after the regulatory hearing scheduled on July 14th, Euro Pacific Bank and the Puerto Rico financial regulator entered negotiations for the continuation of bank operations.
We can confirm that we are now in advanced discussions with the regulator, and we will share with you results as soon as it is permitted.
Again, if you are not aware, the Puerto Rico financial regulator recently requested that Euro Pacific Bank pause its operations. In response, we complied by pausing all transactions to review the details of their request. In the meantime, a trustee has been appointed to administer the standard affairs of the bank to assure safekeeping and preservation of funds.
We appreciate your patience through this process, and as usual, Euro Pacific Bank maintains a full-reserve ratio, meaning we make no loans and keep all client deposits on-demand.


For me it sounds really bad, and this has happened despite their extreme invasive compliance procedures (you always need to justify even for the tiniest incoming payment).

-> In these days it becomes more and more a risk to park funds in traditional banks even though they are full-reserve like EPB.....

Greetings,
A.

 

[Martin Everson]

There is a long running thread below if you want to join. They mention this news already.

https://www.offshorecorptalk.com/threads/euro-pacific-bank-is-a-scam.30470/page-10#post-224327

does anyone know what is currently (status as of July 25, 2022) happening with EPB?

We can only speculate as its closed door talks. Until the OCIF publish a new statement we have no idea in reality. But it indeed does not sound good.

-> In these days it becomes more and more a risk to park funds in traditional banks even though they are full-reserve like EPB.....

Full reserve status means nothing in reality. Most EMI's are full reserve yet they go under each day. It is important to see the audited financials of a bank. The costs of a banks operation and its revenue has a direct impact on its solvency. Clearly EPB was not profitable at all and was just burning money in its operation. This would have been clear for all to see if they published audited financials.

Just hope for the best. And hope no client funds have been misappropriated.

P.S In general when you deposit money in any bank you become an unsecured lender to that bank. So you need to know that banks financial health.