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More evidence that Stanford International Bank is in a tight spot

Howzat?

Two stories from two sides of The World According To Allen Stanford point to the same conclusion; the dude has money issues.

Firstly, Nasdaq quoted Emageon (EMAG) was supposed to merge with Health Systems Solutions (HSSO.ob) with the (already extended) deadline being today. This is connected directly to Stanford International Bank (SIB) because it was the financial entity that had to come up with U$62m to fund the purchase. Unfortunately for all concerned, SIB has failed to deliver the cash, the dealine passed today and there’s no word on reasons why as yet. Now that’s strange when you consider that SIB claimed over a billion in liquid equity in its last client update at end December. Can’t find $62m when you’re supposed to have $1,000m lying around? Hmmmmmmmmmm. Here’s how the news crossed the wires this morning:

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9:02AM Emageon provides update regarding merger transaction; has been informed that Stanford Intl Bank will likely not provide financing necessary (EMAG) 2.51 : Co announces that it has been informed by Health Systems Solutions (HSSO:OB) that it does not expect that Stanford International Bank will provide the funding necessary to consummate the parties’ merger transaction today. The merger was scheduled to close today, Feb 11, 2009, in accordance with the terms of the parties’ amended merger agreement. EMAG is evaluating its options in response to this development.
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And the result is that EMAG is today down 47%, the day’s worst performing stock on the Nasdaq. The other story that points the “got cash?” finger at Allen Stanford is the imminent decision to drastically cut back his headline-making personal sponsorship of international cricket (his beloved and preferred pastime). The UK Daily Telegraph today reports that

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“Stanford and the England & Wales Cricket Board are keen to make an announcement on the match’s future before the start of Friday’s second Test in Antigua.

Giles Clarke, the chairman of the ECB, arrived in Antigua on Tuesday evening. Antigua is Stanford’s home island and it is there that he closed his cricket office at the end of last year.

Stanford’s company have also laid construction workers off on the island and with the credit crunch squeezing the financial markets, he looks set to trim down his lavish outlay on cricket yada yada continues here”

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All this at a time when his bank is reneging on deals and the SEC is renewing its scrutiny of SIB. Gotta make you wonder, hasn’t it?

If I were one of the Latinos with part of the U$3Bn apparently held by people in SIB down here (there’s over $7Bn in total deposits from 131 countries, apparently), I’d be thinking long and hard about what I really want to do with my life savings right now. Not only that, but if I were part of the Colombian Stock Exchange I’d be worried about suddenly losing the volumes created by the 4th biggest player in that market. Just thinking out loud, y’know…..personal opinion and all that……

UPDATE: Check out this no-beating-around-the-bush quote from the author of the excellent original analysis that set off interest in SIB these last few days. English language blog Caracas Gringo has interviewed Alex Dalmady and has him as saying the following:

“It took me less than 30 minutes to confirm that Stanford International Bank is a scam,” financial adviser Alex Dalmady tells Caracas Gringo. “All the data I needed was posted in plain view on Stanford’s web site,” he adds.

“I have only one question for Stanford’s owner,” Dalmady says. “Where is Stanford’s $8 billion portfolio? Where are the $8 billion hidden? Nowhere; they don’t exist.”

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