i just called the bank, i talked to someone not working for them, she said she doesnt know whats happening, she said the statement is gone from the website and she doenst know whats going on, she took my phone number and she said she doenst know who will call me back and where the message goes she is sending...
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Euro Pacific bank is a scam
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https://europacbank.com/support/bank-operations-20220801/
As a result, we proposed a plan to allow customers a period to withdraw their funds, or allow their funds to be transferred to another bank outside of Puerto Rico. We have already selected a bank that we think is best positioned to offer excellent services to our customers.
Unfortunately, we are still waiting for approval from the Puerto Rico Office of the Commissioner of Financial Institutions (OCIF), and it’s taking a lot longer than we expected for them to complete this process.
We understand many of you are looking for a clearer timeline. At the same time, we are required to follow the financial regulatory authority’s lead. Thank you for your continued patience and understanding.
Summary:
Bank Operations Update: August 1, 2022
Prior to the suspension, Euro Pacific Bank was in the process of being acquired by a larger financial institution. Instead of allowing the sale, regulators placed the bank into receivership. Further, despite multiple offers to buy the bank, regulators have decided that the bank must be liquidated.As a result, we proposed a plan to allow customers a period to withdraw their funds, or allow their funds to be transferred to another bank outside of Puerto Rico. We have already selected a bank that we think is best positioned to offer excellent services to our customers.
Unfortunately, we are still waiting for approval from the Puerto Rico Office of the Commissioner of Financial Institutions (OCIF), and it’s taking a lot longer than we expected for them to complete this process.
We understand many of you are looking for a clearer timeline. At the same time, we are required to follow the financial regulatory authority’s lead. Thank you for your continued patience and understanding.
Summary:
- The Puerto Rico financial regulator in late-June 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.
- 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.
- As usual, Euro Pacific Bank maintains a full-reserve ratio, meaning we make no loans and keep all client deposits on-demand.
Who's the new bank?
Who was the "larger financial institution" buying them? Heard someone from Texas... could it be?
Who was the "larger financial institution" buying them? Heard someone from Texas... could it be?
RIP Euro Pacific Bank a bankrupt bank and former home to shell companies and tax evaders.
Whatever you do DO NOT use their recommended bank to transfer assets to unless it is a bank with credible financials. Don't repeat the same mistake and live and learn.
Did you have securities or deposits? If your money was on- balance sheet probably not or with a big haircut but if it was off-balance sheet (securities in custody) might take time but you should receive
Yes if the money is actually still all there...lol. Just be first in line.
Lets see if customers can really send funds to a bank of their choice. Or whether usual EPB wire excuses will in reality force funds to be sent to this new bank
.P.S Very odd they said "another bank outside of Puerto Rico". Client funds are not welcome at other banks in Puerto RIco?
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You see they were planning to automatically transfer your funds to a new bank unless you opt out. I imagine opting out would be difficult.
In any case the liquidators are not gonna miss a huge pay day. So if liquidation does happen before accounts are transferred then expect it to take years like Loyal Bank, Satabank liquidation etc. The 1000's of accounts will be individually processed manually and liquidator will get to retire rich from all the work and daily rate....lol.
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In response, we have proposed to the Puerto Rico Office of the Commissioner of Financial Institutions (OCIF) a plan to allow all accounts to be transferred to another bank outside of Puerto Rico. We have already selected a bank that we believe is best positioned to offer excellent services to our customers. This plan also requests that clients be given a reasonable period to withdraw their funds to an alternative bank account, if they wish to opt out of the automatic transfer to the outside bank.
We are currently waiting for OCIF to approve this plan. Unfortunately, it’s taking a lot longer than we expected for them to complete this process. While we understand many of you are looking for a clearer timeline, we are required to follow the financial regulatory authority’s lead. Thank you for your continued patience and understanding.
This process will continue, although there is a pause on securities transfers to the new brokerage accounts until we get clarification on how the bank liquidation affects its non-Puerto Rico subsidiaries.
Euro Pacific Funds, which offers mutual funds such as the International Balanced, International Growth, Natural Resources, and Gold & Precious Metals is also expected to provide an update on how it will or will not be impacted by the bank’s liquidation.
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In any case the liquidators are not gonna miss a huge pay day. So if liquidation does happen before accounts are transferred then expect it to take years like Loyal Bank, Satabank liquidation etc. The 1000's of accounts will be individually processed manually and liquidator will get to retire rich from all the work and daily rate....lol.
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Bank Operations Update: August 4, 2022
Prior to the suspension on June 30, 2022, Euro Pacific Bank was in the process of being acquired by a larger financial institution. Instead of allowing the sale, regulators halted its operations and placed the bank into receivership. Unfortunately, despite continued offers from financial institutions to purchase the bank, regulators have decided that the bank must be liquidated.In response, we have proposed to the Puerto Rico Office of the Commissioner of Financial Institutions (OCIF) a plan to allow all accounts to be transferred to another bank outside of Puerto Rico. We have already selected a bank that we believe is best positioned to offer excellent services to our customers. This plan also requests that clients be given a reasonable period to withdraw their funds to an alternative bank account, if they wish to opt out of the automatic transfer to the outside bank.
We are currently waiting for OCIF to approve this plan. Unfortunately, it’s taking a lot longer than we expected for them to complete this process. While we understand many of you are looking for a clearer timeline, we are required to follow the financial regulatory authority’s lead. Thank you for your continued patience and understanding.
How does this affect Euro Pacific Bank’s subsidiaries?
As some of you are aware, Euro Pacific Securities offers the Euro Pacific Trader brokerage account. Prior to the suspension, brokerage accounts were in the process of being migrated.This process will continue, although there is a pause on securities transfers to the new brokerage accounts until we get clarification on how the bank liquidation affects its non-Puerto Rico subsidiaries.
Euro Pacific Funds, which offers mutual funds such as the International Balanced, International Growth, Natural Resources, and Gold & Precious Metals is also expected to provide an update on how it will or will not be impacted by the bank’s liquidation.
---- quote end
Seems like bad news on the above if the below holds true in Puerto Rico
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Insolvency of parent companies
Wholly-owned subsidiaries are independent businesses that are owned by a single shareholder that is also a business. Consequently, the insolvency of the parent doesn't necessarily have to affect the operations of the subsidiary, since the parent's debts are its own. However, the parent's ownership interest in a subsidiary is an asset, and the parent has the right to liquidate it to pay the bills, in the same way that a person can cash in stocks or sell the family car to relieve financial difficulties. The parent company also can pull money out of the subsidiary to pay its own bills. Basically, a subsidiary with an insolvent parent is at risk of complete upheaval at any time.--- quote end
If we look at satabank liquidation costs below for EY
......hopefully their liquidator is cheaper.https://www.maltatoday.com.mt/busin...for_competent_person_as_clients_plan_protest#
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Satabank said the international team rates range from €269 an hour for a senior official, to €689 an hour for partners. Managers are paid €372 and senior managers get €535.
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https://www.nytimes.com/2022/08/09/business/euro-pacific-peter-schiff.html
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In that settlement, Mr. Schiff agreed to return $66.7 million in deposits, using several million in gold to cover any cash shortfalls. He has also agreed to pay $300,000 in fines, according to a copy of the settlement.
He acknowledged that two years ago the bank was about $4 million short, because it had, he said, inadvertently been using clients’ deposits toward operating expenses. He said he had remedied the problem by pouring his own money into the bank.
------ quote end
Exactly as I thought. 100% reserve banking...lol. He admitted he was dipping into client funds to fund the banks operations. And people wondered why EPB was finding excuses to delay out-going payments etc. Well I say no more folks. At least he is covering any shortfall.
I said back in 2019 there is a reason they do no publish audited financials
.
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In that settlement, Mr. Schiff agreed to return $66.7 million in deposits, using several million in gold to cover any cash shortfalls. He has also agreed to pay $300,000 in fines, according to a copy of the settlement.
He acknowledged that two years ago the bank was about $4 million short, because it had, he said, inadvertently been using clients’ deposits toward operating expenses. He said he had remedied the problem by pouring his own money into the bank.
------ quote end
Exactly as I thought. 100% reserve banking...lol. He admitted he was dipping into client funds to fund the banks operations. And people wondered why EPB was finding excuses to delay out-going payments etc. Well I say no more folks. At least he is covering any shortfall.
I said back in 2019 there is a reason they do no publish audited financials
.
He never mentioned the bank dipped into client funds to pay operating expenses. But does gloss over and mention making depositors whole
.In end it is good news for depositors so far. Hopefully they really get to wire money to bank of their choice "outside of Puerto Rico" unhindered
.
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This is the result of IBKR ending their Non-Disclosed Broker program last year, which Euro Pacific Securities was a part of.
As of June 28, 2022, IBKR has set all existing brokerage accounts to “liquidation only”, which means you’re able to place sell orders and close positions, but you won’t be able to place any buy orders.
2. If your new IBKR account is already activated, we are currently waiting for guidance from the Puerto Rico regulator (OCIF) on when we can allow IBKR to transfer assets (cash and stock positions) from your existing account to the newly activated account.
Unfortunately we don’t know when OCIF will let us proceed, but there has been some progress on the bank suspension, which is the source of this delay.
3. If you opted out of the migration and therefore are not opening a new Interactive Brokers account and are waiting to transfer your brokerage cash balances back to your EPB bank account, you will be able to do that as soon as EPB receives approval from OCIF to continue processing transactions.
4. If you were not provided a new IBKR account username and password, you likely did not qualify to migrate with Euro Pacific Securities to our new “Fully-Disclosed Broker” relationship, and need to open a regular IBKR retail account, as described here.
If you are uncertain if you fall into this category or have any general inquiries, please contact Trading Support at [email protected].
Thanks for your continued patience as always through this regulatory process.
---- quote end
Brokerage Migration Update: August 18, 2022
Summary
As you may recall, if you currently have a Euro Pacific Trader brokerage account at Interactive Brokers (IBKR), IBKR requested that all clients either open new (retail) Interactive Brokers accounts to continue trading.This is the result of IBKR ending their Non-Disclosed Broker program last year, which Euro Pacific Securities was a part of.
As of June 28, 2022, IBKR has set all existing brokerage accounts to “liquidation only”, which means you’re able to place sell orders and close positions, but you won’t be able to place any buy orders.
Next Steps
1. If you are still completing your new IBKR account application, please continue with that process until the account is activated.2. If your new IBKR account is already activated, we are currently waiting for guidance from the Puerto Rico regulator (OCIF) on when we can allow IBKR to transfer assets (cash and stock positions) from your existing account to the newly activated account.
Unfortunately we don’t know when OCIF will let us proceed, but there has been some progress on the bank suspension, which is the source of this delay.
3. If you opted out of the migration and therefore are not opening a new Interactive Brokers account and are waiting to transfer your brokerage cash balances back to your EPB bank account, you will be able to do that as soon as EPB receives approval from OCIF to continue processing transactions.
4. If you were not provided a new IBKR account username and password, you likely did not qualify to migrate with Euro Pacific Securities to our new “Fully-Disclosed Broker” relationship, and need to open a regular IBKR retail account, as described here.
If you are uncertain if you fall into this category or have any general inquiries, please contact Trading Support at [email protected].
Thanks for your continued patience as always through this regulatory process.
---- quote end
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