REACTION

Finance Minister Paula Cox

'The Ministry is pleased that the commercial resolution was concluded in a manner that considerably strengthens the Bank's capital base. The $550 million injection of new capital enables the Bank to de-risk its balance sheet and positions it for a reasonably quick return to profitability.

"The Carlyle Group and the Canadian Imperial Bank of Commerce (CIBC) are brand names in global financial circles. Their partnership with Butterfield Bank is a positive development for Bermuda's financial sector and the equity capital commitment represents a long term vote of confidence in our jurisdiction as an international financial centre."

bma ceo Jeremy Cox

'The Authority has been in active dialogue with the bank on the need to strengthen its balance sheet. The additional $200m in capital provided last year undoubtedly helped the bank to absorb the further losses it has incurred. However, in its discussions with the bank the Authority reached the view that a further capital injection was necessary, given continuing uncertainty in global financial markets — and the anticipated continued adverse impact of the financial crisis on Bermuda's economy this year —to remove any remaining concerns about the financial condition of the institution, and thereby reassure depositors and the markets in which the bank operates.

"We therefore welcome the announcement of an injection of new equity by a number of private investors led by CIBC and the Carlyle Group.

"The subscription of $550 million in new shares will boost the capital position of the bank to a level well in excess of the Authority's minimum capital requirements."