Two years previously, in 1973, WFC founded a bank in Panama called "Unibank". It received with unusual swiftness Panama's most liberal banking license, a Class One license. Most of the equity was held by WFC, but a total of %24 (8 per cent each) was held by three American banks- Mercantile International Corporation (subsidiary Mercantile Trust Company of St. Louis), First National Bank of Louisville (subsidiary of First Kentucky National Corporation), and Midatlantic International Inc. (subsidiary of Midatlantic Banks of West Orange, N. S.).
Unibank was rather successful- by 1976 it had affiliates world-wide and ~50 million dollars in deposit. Unibank was instrumental in the frauds, as it often diverted loans and loan repayments to WFC, where they typically vanished. Financial fraud was not the only actitiy- it diversified into arms smuggling and circumventing the embargo of Cuba. The deceit could not last forever, and in 1977, the Banking Commissioner of Panama seized Unibank; he had little choice since Unibank was a debtor to the National Bank of Panama, and already $10,000,000 had been lost. Unibank would not be the only bank begun by WFC principals to collapse with great financial loss.
Unibank was rather successful- by 1976 it had affiliates world-wide and ~50 million dollars in deposit. Unibank was instrumental in the frauds, as it often diverted loans and loan repayments to WFC, where they typically vanished. Financial fraud was not the only actitiy- it diversified into arms smuggling and circumventing the embargo of Cuba. The deceit could not last forever, and in 1977, the Banking Commissioner of Panama seized Unibank; he had little choice since Unibank was a debtor to the National Bank of Panama, and already $10,000,000 had been lost. Unibank would not be the only bank begun by WFC principals to collapse with great financial loss.
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