HOW DID THEY LOSE IT?

Banco Filipino College Assurance Plan (CAP)

De Leon, Dela Cruz, Estanislao, Gumabon, Lope, Ronquillo, Roxas

Banco Filipino
Banco Filipino (BF) is a savings and mortgage bank known for property developments such as BF Homes and other subdivisions in Paranaque, Las Pinas and Quezon City. Banco Filipino was ordered closure by BSP twice in its existence, (1) in 1985 and (2) in 2011. First bank to process online transactions in real time, giving customers the ability to deposit in any online BF branch. Major Shareholders:
Metropolis Development Corp. Apex, LBH Inc

Competition: PSBank, Centennial Savings Banks

College Assurance Plans - CAP

Started in 1980, with the birth of its mother company College Assurance Plan (CAP Family of Companies) Expanded to a wide range of businesses
Pre-need Pension Distance Learning Health Maintenance Life Insurance Information Technology Financing Communications, and General Insurance

A Closely held family business Sobrepenas Family

CAP (cont.)
Story Illustration

CAP Investments / Activities Bailed out Fil Estate (FELI) with P1.6B equity Financed Security Service Company Completion of Camp John Hay, Renaissance Condominium projects Investments in Metro Rail Transit

College Assurance Plans CAP

Education CAP Pension
Shelled out P978M in 2004 and P734M in 2003 to CAP
CAP Health Maint. Office
Capital Deficient of P32 M but released P48M for CAP

Life Insurance

General Insurance Financing Information Technology

Distance Learning Communications

CAP (cont.)
Causes of the Companys liquidity problem
CAP provides most (if not all) of the CAP subsidiaries equities. Ownership between subsidiaries were intertwined. Significant shuffling of funds between companies to the extent of salvaging the parent company, CAP. Investments in FELI and MRT did not realized, with market capitalization (FELI) decreasing from P13B to P2B. Mandated contributions to parent company (CAP) to fund outstanding payables, regardless if the contributing company was deficient.

Conclusion