Lt Governor addresses Community Bank of American Samoa’s proposal to purchase TBAS
By: Tosimaeʻa Tupua
Responding to questions about the Community Banks proposal to purchase the Territorial Bank of American Samoa or TBAS, Lt Governor Talauega says the government is concerned about preserving the interests of the Government that went into creating the bank and also the interest in securing FDIC coverage. To operate a bank in any state of OR territory of the US, banks must be FDIC insured to protect and reimburses deposits up to the legal limit of $250,000 in the event the FDIC-insured bank fails.
Lt Governor Talauega said, “The process of securing FDIC is arduous and expensive and I don't think the community bank or anyone with interests have that funding available to secure FDIC insurance”. He continued, “The government will work with CBAS and other interested parties to make sure that whatever decision is made will be done for the benefit of the people of American Samoa”.
The Community Bank of American Samoa has pointed out that the government owned TBAS is unable to secure FDIC federal insurance to protect its customers.
With ANZ leaving American Samoa in September this year, CBAS thinks that the time is now to privatize TBAS so that the process of obtaining FDIC insurance can begin without delay. In a letter to Governor Lemanu on April 26 this year, CBAS said American Samoa will have no FDIC insured bank once ANZ leaves.