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Q: Banking relationships with offshore banks ( Answered,   0 Comments )
Subject: Banking relationships with offshore banks
Category: Business and Money > Finance
Asked by: 211563-ga
List Price: $100.00
Posted: 25 Dec 2002 10:12 PST
Expires: 24 Jan 2003 10:12 PST
Question ID: 133298
I am trying to find out the relationship, if any, between Global
Crossing (the multi billion company that went bankrupt several months
ago) and the Bank of Bermuda...both are Bermuda companies...also, if
none found, see who the Bank of Bermuda has a banking relationship
with in the United States and if Global Crossing has a relationship
with the same bank...thanks..Randy Murray
Subject: Re: Banking relationships with offshore banks
Answered By: arimathea-ga on 25 Dec 2002 16:34 PST

Thanks for the opportunity to perform this research!

Global Crossing's relationship with the Bank of Bermuda is not a
direct one.  Primarily, Global Crossing is associated with the Bank of
Bermuda in the sense
that they are both Bermuda companies, as you stated.  Some emerging
markets funds have large holdings in both Bank of Bermuda and Global
Crossing.  GLBX's primary bank is JP Morgan Chase, which has
approximately USD$100M in direct exposure on the Global Crossing deal
and is often regarded as a direct competitor to Bank of Bermuda.

Bank of Bermuda does have an office in the USA.  They also maintain a
secondary listing on NASDAQ to parallel their BSX (Bermuda Stock
Exchange) listing under the symbol BBDA.

In February, 2000 Global Crossing acquired IXnet, which offers
financial services to:

"IXnet's blue-chip clients include Morgan Stanley, Goldman Sachs,
Merrill Lynch, Citigroup, Chase, Bear Stearns, Donaldson Lufkin &
Jenrette, Deutsche Bank, ABN AMRO, NatWest, HSBC, Nomura, Sumitomo,
Barclays, Spear Leeds & Kellogg, Fidelity Investments, Janus, many of
the leading ECNs, and leading market data providers such as First Call
and News Edge. Many of IXnet's customer relationships grew out of
existing relationships with IPC, which was founded in the 1970s."

Bank of Bermuda's COO used to be with Citibank.

In North America, I found that Bank of America was associated with
CIBC Mellon in a subcustody relationship.  I couldn't find any direct
US relationships.  If there are any, it is likely they will be
insurance relationships.

In conclusion, I assert the following:

- There appears to be no public information relating to Global
Crossing and the Bank of Bermuda having a relationship.

- There appears to be no public information stating who has a
relationship with Bank of Bermuda in the US, but Bank of Bermuda does
refer several times to its partner companies in the United States.

- Global Crossing's primary bank is one of BOB's biggest competitors. 
It is unlikely they were ever associated except in GLBX's infancy.

I don't expect a positive response, but i've placed a call to the BBDA
office in New York with the hopes of obtaining a list of banks they
partner with.  It is unlikely they will release this information.

I hope this answers your question.

[GLBX01] Global Crossing press release

Search methodology: 

[SM01] Multiple Google searches, following terms: "bank of bermuda"
citicorp citibank global crossing GLBX BBDA subcustody

[SM02] Ameritrade/Hoover's/CBS MarketWatch/multex research: BBDX GLBX

[SM03] Global Crossing SEC filings

Google Answers Researcher

Request for Answer Clarification by 211563-ga on 26 Dec 2002 06:34 PST
excellent research...I curious as to why the Bank of Bermuda Trust
Department would recommend to its clients to buy Global Crossing when
its price was at its highest and continue to recommend it as the stock
dropped to nothing...Bank of Bermuda info can also be found thru the
Bermuda Newspaper which is on internet...basically, I'm trying, with
your help, to dig around and see if the execs of Bank of Bermuda were
in on Global Crossings cooking the's public info now about
Global Crossing and they couldn't have done what they did without some
help from the banks...I lost two life savings..on the

Clarification of Answer by arimathea-ga on 26 Dec 2002 07:47 PST

My research didn't show any of this information.  I did some
additional research this morning and couldn't find anything new.  It
looks very much like GLBX misled their banks.  A lot of banks were
pretty confident during the whole process of the telecom boom that
things would pull up, and I can't say reliably that all of them were
misled or that there was any criminal activity on Bank of Bermuda's
part.  The SEC is digging really heavily into Global Crossing's
affairs, so you may be able to talk to an investigator there and find
out more information - but there have been no published reports and
the media has been watching it like a hawk.  I would certainly report
this information to the SEC and/or to the media and see if they come
up with anything.  All I do know for sure is that

- B of B has an office in the US
- They're traded on NASDAQ as a secondary listing
- They are on the Nasdaq Financial-100 index
- GLBX did not appear to have an account with them
- GLBX and BBDA are both Bermuda companies
- The SEC shows no information relating to this matter

BBDA has been a part of shady schemes before - a Ponzi scheme in 1999,
I believe - and they are certainly the lynchpin of offshore banking
for US customers wanting convenience, besides the Caymans.

Good luck in your continuing search.

Google Answers Researcher

Request for Answer Clarification by 211563-ga on 26 Dec 2002 10:45 PST
Another $50 for a clarification of the ponzi scheme in l999...also, if
you find any relationship between bank of bermuda and global crossing,
I'll pay for the information...I'll also be glad to pay for
information on any shady dealings of the bank..thank you...Randy

Clarification of Answer by arimathea-ga on 26 Dec 2002 13:15 PST

The information on the Ponzi scheme with Bank of Bermuda can be read at:

Information on the Ponzi scheme in general:

If I find anything else i'll leave a comment.
There are no comments at this time.

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