The BSP decided to place Jade Bank under receivership on Dec. 18 this year on the basis of the findings of the BSP’s department of thrift bank and non-bank financial institutions that the bank "cannot continue in business without involving probable losses to its depositors or creditors."
In a statement, the BSP said "Jade Bank was given enough time and opportunity to reorganize and recapitalize the bank."
As early as July 6, 2000, the Monetary Board, the BSP’s policy-making body, had already directed the BSP’s supervision and examination Sector to conduct a special examination of Jade Bank to look into allegations of wrongdoing on the part of responsible officers of the bank.
On Aug. 11, the Monetary Board imposed monetary penalties on all members of Jade Bank’s board of directors for various violations of banking laws and regulations, including the grant of huge loans to some of the directors, erroneous reporting and questionable transactions like manipulations of accounts and collection of padded expenses.
Luis Co, the bank’s founder and former president, his son Alvin, who was an assistant vice president, and three other key officers were declared permanently disqualified from holding any position in any financial institutions under the supervision of the BSP.
On Sept. 7, the BSP represented by Juan de Zuniga Jr., general counsel and Vicente Aquino, head of the office of special investigation, filed criminal charges of estafa on eight counts against Luis Co, Alvin Co and Myla Jardeleza, a secretary, for conspiring to misappropriate P3.033 million.
The BSP said the amount went to the payment of a security agency for supposed services "when no such services were rendered."
Jade Bank initially came into prominence following news reports about the grant of a loan to dead persons.