Some say that Millennium Bank is too good to be true and that there must be something shady or wrong about because it just seems too good on paper. The high-flying bank can claim to have CD’s on their books with rates twice that of the market norm. They have assets in hand worth more than $50 billion. Indeed, the Millennium Bank has created quite the buzz and the inquisition by Matt Goldstein has only served to make a tricky issue even trickier. There has been a lot been said about Millennium Bank, both positive and negative. Goldstein’s methodology of analysis itself has been called into question, with many saying that it was very unfair to pit the rates offered by an offshore bank to that offered by an American bank.
Indeed, it is true that offshore banks will always offer higher yields. Millennium Bank itself is a prime example of this, with the interest rates they offer hovering between 6 and 7.5%. Their website makes Millennium Bank seem very likable indeed. So what if they are located in Kingstown, the capital city of St. Vincent & the Grenadines in the Caribbean. If Millennium Bank is to be believed, the global financial crisis has not rocked them. A large part of the problem stemmed from the larger banks that dabbled in sub-prime mortgages. A wholly owned subsidiary of United Trust of Switzerland, everything seems to check out for Millennium Bank. The holding trust company was founded in 1931 and it is listed as a licensed bank the requisite authorities.
But closer inspection leaves things looking a bit shady. First of all, there are the strategies it employs. Just how do they get the kind of returns they do? Millennium Bank them say that the absence of a restrictive regulatory authority means they invest in an array of asset classes, such as stocks, debt, and real estate. But even then, those asset classes aren’t generating the kind of returns Millennium Bank claims to offer. As for the holding trust itself, they are elusive with no web presence. What’s worse, the regulators haven’t even heard of them. You best be wary if you choose to go forward with Millennium Bank.