Bloomberg reports that Cayman Islands-based Caledonian Bank Ltd. filed for bankruptcy in New York, saying a federal court’s freeze on its U.S. assets triggered a run on the bank by customers.
The U.S. Securities and Exchange Commission sued the bank Feb. 6 over claims it profited from stock sales of invalidly registered shell companies.
The bank has about 1,550 customers and almost 1,900 active accounts. About 51 percent of its assets are in the U.S., according to the filing.
The case is In Re: Caledonian Bank Ltd., 15-10324, U.S. Bankruptcy Court, Southern District of New York (Manhattan).