On Tuesday it was believed that Robert Allen who was the shareholder of Texas Bank was being cross questioned on account of illegally obtaining $ 8 billion from 50,000 investors who were believed to be from Houston area.

The News simply triggered a panic among the customers and most of them started withdrawing their funds from the bank.
Worried customers who had tried to withdraw their cash had beseized two of the banks including Stanford bank in Obario and Punta Pacifica, which worried the cashiers.
So in order to stop the crises, the Bank Superintendent seized all transactions and appointed Ramon Martinez Stagg to investigate the very next day.
The decision was taken on account of the fraud conducted by its share holder as was explained by the bank management.
The Federal Authorities are also looking out for R.Allen Stanford and also visited his house in Houston but he simply could not be traced out.
Yesterday the office was under the control of the Marshals and SEC investigators claiming that Allen and his relatives had in fact defrauded thousands of investors for billions of dollars persuading them for investing in fake certificate of deposit with double returns.
Most of the employees of Houston-based firm also had filed a law suit stating that they were simply forced to resign after the financial impropriety was discovered.
This had affected most of the banking sectors in Panama as the decisions are still being analyzed by the investigators and Superintendents of the bank. However most of the administrators feel that this is just an isolated situation and was a result of the decisions made by the foreign government and not because of the financial crises in Panama.

Ricardo M. Alba who is the banking and economic business consultant had justified the steps taken by the bank Superintendent on legal accounts, especially when the shareholder was accused in US banking fraud case.
He also added that it was in fact necessary to take all of the preventive measures to stop withdrawals.
The superintendent had also refused to may any further statements on this account.
This may continue for a much longer period of time.