The first official statement from the administration concerning the Community Bank of American Samoa’s (CBAS) interest in acquiring the Territorial Bank of American Samoa was made last week by then-Acting Governor Talauiega Eleasalo Ale.
He said the administration is working with CBAS to make sure there’s a way to transfer the bank interest to CBAS or any other private group interested in TBAS.
He said, the government wants to preserve its interests that went into setting up TBAS adding that obtaining FDIC overage is a long, arduous and expensive undertaking,
Talauega said, “it’s not clear that CBAS or other locals” have the funding to secure FDIC coverage.
Following his comments, KHJ News asked the Chairman of the CBAS Board of Directors Marshall Ashley for reaction.
“CBAS continues to pursue a dialogue with the ASG which could lead to a win-win-win outcome which meets the needs of the ASG, the Community Bank investors, and (most importantly) the local economy,” responded Ashley.
“We strongly believe that the best solution to American Samoa’s banking needs would be a locally-owned and FDIC-insured bank because history has demonstrated that off-island banks have higher priorities than serving the needs of our remote and unique American Samoa economy.”
The CBAS chairman added, “We are confident that local investors can provide the needed capital to fairly compensate ASG for TBAS, to obtain FDIC insurance, and to operate a full-service bank. However, raising the necessary funds can only happen if prospective investors are presented with a sound and profitable investment opportunity. We have also had indications of interest from more than one financial institution wanting to explore ways that they could assist us, thus enhancing the prospects for CBAS’s success.”
“However, it is impossible to confirm these potential investors and industry partners without first agreeing to a basic outline of the proposed transaction with the ASG following collaborative dialogue and negotiations.”
“We look forward to beginning that dialogue and negotiation whenever the ASG is ready, and soon.”
KHJ News also asked Ashley, how their Board addresses the presence of Leilua Stevenson on, both, the TBAS Board and CBAS group.
He explained, “Leilua Stevenson has been a director of CBAS for more than 11 years; she has been on the TBAS board for less than three years. She is aware of the potential for a conflict of interest and has been careful to avoid disclosure of any confidential TBAS information.”
Ashley went on to say, “It is the Governor, not the TBAS board, who is responsible for negotiating a potential sale of ASG’s interests and therefore Leilua has been able to avoid a conflict of interest. The Community Bank board is confident that Leilua will fulfill her professional and legal responsibilities to both boards.”
