Here is a case with far-reaching repercussions involving the Philippine Deposit Insurance Corp. (PDIC), which allegedly took over the Unitrust Development Bank (UDB) without sufficient legal basis. Heres the worst part: PDIC officials allegedly started dipping their hands into the banks coffers after the takeover, thus sending chilling signals to other banks.
On December 28, 2001, UDB suffered liquidity, or cash-flow problems, which is common in varying degrees among banks. By January 24, 2002, PDIC senior officials Bernadette Sanchez, lawyer Ma. Antonnette Brilliantes Bolivar and lawyer Gilroy Billones declared UDB insolvent, meaning assets were much less than liabilities, former UDB Chairman Francisco Yuseco Jr. says.
Ironically, PDI…
Read the full article at: http://www.businessmirror.com.ph/chilling-signals-from-pdic/