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Babauta supports BoS rehab
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Posted on Oct 06 2005
By opening a personal savings account at the Bank of Saipan Wednesday, Gov. Juan N. Babauta reaffirmed his support for an end to the bank’s receivership once conditions are in place to assure depositors that the situation that occurred in 2001 does not occur again.
“I support the rehabilitation of the bank,” said Babauta. “There are still large amounts of CNMI government deposits in the bank.”
The governor further maintained that bank deposits must be protected. In the absence of FDIC protection there must be some form of insurance. The Department of Commerce has proposed that any end to the receivership contain regulatory conditions related to reporting and other requirements that ensure depositors are protected.
“While I support the need for regular operations of this bank and total rehabilitation, it must be done in an equitable way, with responsibility falling on the administration of the bank and not on the government’s,” he said.
Given the option of placing the bank in receivership or dissolving it, Babauta chose receivership.
“The aim was to keep CNMI money here in the Commonwealth,” he said. (PR)
