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Despite the SSL scandal, there is no government bailout

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According to Prime Minister Andrew Holness, the government will not be covering the damages suffered by financial institution customers as a result of those companies’ inability to secure their consumers’ money.

According to Holness’s statement from yesterday, “The government will not socialize any debt, and we will not socialize the failure of our banks to be prudential and to safeguard your clients.”

“If we did that, it would send a very poor message to the banks and investment firms that they could be careless and expect the bank (of Jamaica) to make up for their carelessness. That won’t take place.

The socialization of debt, according to the prime minister, “put the country into a catastrophe that took decades to resolve and rendered the entire country destitute.”

On Tuesday evening in Kingston, at the beginning of the 18th Regional Jamaica Stock Exchange Investments and Capital Markets Conference, Holness remarked that Jamaica should take a lesson from the severe fraud epidemic now plaguing the financial industry.

Holness continued by saying that Jamaica should take use of the chance to tighten the laws controlling the industry, as is already being done.

Due in large part to the fact that SSL’s most well-known client, Olympic hero Usain Bolt, is alleged to have lost US$12.8 million in the fiasco, more than one billion Jamaican dollars have vanished from the corporation.

The name SSL was not mentioned by the prime minister. But he said that the nation shouldn’t make the same mistakes again.

Even in this meeting, not everyone agrees with the hard fact that there will be no bailouts, according to Holness.

Although the government has asked the Federal Bureau of Investigations (FBI) in the United States and other undisclosed foreign specialists to assist with the fraud probe, Holness vowed that there would be “no political meddling or political cover.”

In order to make it quite apparent that such offenses will not be allowed, he reaffirmed that the sanctions for financial and white-collar crimes were being reviewed.

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