Pago Pago, AMERICAN SAMOA — ASG is expressing concern over interested parties “securing the first bond” to start a bank in the territory.

Citing that at the moment it is not clear that the American Samoa Community Bank (ASCB) or any other local interests have that funding ability.

Acting Governor Talauega Eleasalo Ale says the governor and the administration is aware of interested parties including the ASCB.

“And [‘we’] are working with them to make sure that there is a way to transfer the [Government-owned] bank to a community bank interest or any other private interest who might be interested in acquiring interest … in the Territorial Bank of American Samoa.”

He made the comments during a press conference with the media yesterday.

Last week the Community Bank of American Samoa issued a statement expressing a strong desire to purchase the Territorial Bank of American Samoa.

The statement was issued three months after CBAS sent a letter to Governor Lemanu Peleti Mauga dated April 26, 2022, citing that with the departure of ANZ, for the first time in fifty years, American Samoa will have no FDIC insured bank.

The CBAS was initially formed more than ten years ago, in efforts to purchase Bank of Hawaii’s operation in the territory, however the bank decided to close instead of selling.

Talauega confirmed the ASCB interest has been in place for quite some time.

“The Government has a concern about preserving and observing the interests of the Government that went into creating the bank.

“And also the interest securing FDIC coverage is a process that is long and it's also very expensive; so securing the first bond to get into the bank as it is — it is a very expensive proposition.

“And at this moment it is not clear that the Community Bank or any other locals’ interests have that funding to secure that,” said Talauega.

Adding there's a lot of interest in this issue.

“The Governor obviously wants to make sure that whatever decision is made, it is made for the benefit and takes care of the interest of our people,” said the Acting Governor.

He confirmed that Governor Lemanu and delegates are also overseas exploring options.

“As you may have heard the Governor and his team have also visited with other options for FDCI or a Credit Union. Options for American Samoa and those discussions and talks will continue. 

“And whatever choice the governor makes it will be made with the full consultation of all the interested parties to ensure that the banking needs of our people are met and taken care of,” said Talauega.

The statement pointed out a government-owned bank is ineligible for participation in the FDIC federal insurance program that protects bank account owners.

For that reason, among others, government leaders have consistently stated their intention is to eventually privatize TBAS.

After the announcement by ANZ that they intend to leave American Samoa later this year, the CBAS board of directors believes the time is right for TBAS to be privatized, so that the process of obtaining FDIC insurance can then be commenced, with a view to ultimately protect local depositors and make loans to local borrowers.

The CBAS was created by present and past local residents to provide American Samoa with a bank dedicated to serving the Territory as its first and only priority.

The current directors of CBAS are Marshall Ashley (Interim Chair), Dave Haleck, Solip Hong, Peter E. Reid Ill, Leilua Stevenson, Gary Ayre, Brett Butler, and Lewis Wolman.