just curious, anybody know where or what bank/financial co. our FSM Trust fund is in or is invested in? or what co is managing our Trust Fund?

Interior Transfers Payment of $31 Million to Compact Trust Fund for the People of the Federated States of Micronesia

WASHINGTON (October 11, 2017) – U.S. Department of the Interior’s Assistant Secretary for Insular Areas Doug Domenech has announced the payment of $30,819,840 to the Compact Trust Fund for the People of the Federated States of Micronesia.

As provided for under the Compact of Free Association agreement, as amended (U.S. Public Law 108-188), the Trust Fund was established to contribute to the economic advancement and long-term budgetary self-reliance of the people of the Federated States of Micronesia when annual grant assistance under the Compact expires after fiscal year 2023. This annual U.S. payment to the Trust Fund follows a schedule as per Section 216 of the Compact, as amended.

“These funds represent a continuing commitment of the U.S. Government to the people of the Federated States of Micronesia now and towards the future under the Compact of Free Association,” said Domenech. “The funds were transferred as soon as possible in the new fiscal year to ensure timely opportunities for investment and maximum growth.”

Trust Fund Chairman and Office of Insular Affairs Director Nik Pula noted the value of the Trust Fund for the People of the Federated States of Micronesia as of June 30, 2017, was $543,540,314, a preliminary and unaudited figure for fiscal year 2017.


  • Great news indeed. On a side note be careful because pasting and posting is one of the new don't do in this forum. And it will get you banned.
  • AntiColonialist did I understand it right that there are 2 trust fund accounts established for FSM?
    What are they and which one are you alluding to in this thread please,
  • As I understand it kinen, there are two separate trust funds. The first is the COFA Trust Fund, into which the US will contribute on a declining basis until 2023, when all financial support for the FSM will cease. The second is the FSM Trust Fund, supported, I believe, by fishing revenues, although I am not certain of how the FSM funds its own Trust Fund. The US does not contribute to the FSM Trust Fund.

    It appears that AntiColonialist is referring above to the COFA Trust Fund. The +/- half a billion dollar value is significantly below what was anticipated when COFA 2 was negotiated.
  • Thanks Sarem Chuuk. Was FSM suppose to contribute funds to the COFA Trust?
  • If I recall correctly, the agreement on the Trust Fund required the FSM to pay $30 million into the Trust Fund. I do not recall whether the state contributions were included in that $30 million, or were made in addition to that sum. I do recall that each state and the FSM government itself had to contribute to the COFA Trust Fund, but I just don't recall whether the total sum was $30 million, or whether the state contributions were in addition to the $30 million. Hope that helps.
  • Thanks again. Great help.
  • Thank you Kinen & Sarem Chuuk for the info. My bad..& yes, what ever the name is, I was referring to the or Compact Trust Fund.

    Anyway, I'm interested in the name of the bank or financial co that's managing our trust fund mainly because about $1 million was withdrawn or defrauded from the Marshalls Island Compact Trust Fund and deposited into accounts in Ireland and Malaysia recently.

    If I'm not mistaken, the Executive Administrator for the Marshall's Trust Fund, Anthony Costanzo, is also the same Executive Administrator for the FSM Compact Trust Fund. The bank that released the funds in error is State Street Bank and Trust Company. I do know that the Mercer Investment Mangement and Anthony Costanzo made the last presentation during the last Trust Fund Committe meeting's on September 1st in Honolulu, Hawaii. Next meeting is I believe in November 2017. Let's hope nothing is also defrauded from our FSM Compact Trust Fund.
  • Keep tap on that incident Anti for us micros please otherwise; we will be utiutinpônukon no more money.
  • State Street Bank & Trust is the Custodian and Mercer Investment is still in the same role. You can find the 2016 Annual Report at:

  • on Jan 18 in 2017, US authorities agreed that State Street Corp will pay $64.6 million to resolve U.S. investigations into what prosecutors said was a scheme to defraud six clients through secret commissions on billions of dollars of trades.

    The six clients, don't know the names or entities. Hope our Trust Fund is not one of them..

    Sorry , below is for only those we wish to read for their own enjoyment or curiosity

    One interesting part is State Street Trust Bank & Co. is a subsidiary of State Street Corporation, one of the main & largest shareholders of the Word's biggest banks ---Bank of America, JP Morgan, Citigroup and Wells Fargo. State Street Corp is also one of the main shareholders of Goldman Sachs, Morgan Stanley and Bank of NY Mellon.

    The eight largest U.S. financial companies (JP Morgan, Wells Fargo, Bank of America, Citigroup, Goldman Sachs, U.S. Bancorp, Bank of New York Mellon and Morgan Stanley) are controlled by ten shareholders and four of them (The Big Four) are State Street, Black Rock, Vanguard and Fidelity.

    The Federal Reserve is comprised of 12 banks, represented by a board of seven people, which comprises of the representatives from the "Big Four,",

    In short, the Federal Reserve is controlled by these four large private companies: BlackRock, State Street, Vanguard and Fidelity. These companies control U.S. monetary policy (and world) without any control or "democratic" choice. These companies launched and participated in past and current worldwide economic crisises and managed to become even more enriched, I guess, including by defrauding their clients.

    Most people assume that the Federal Reserve Bank is federal--that is, part of the united States' government. However, the Ninth Circuit Court put that issue to rest in 1982 when they adjudicated:

    "Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purposes of the FTCA, but are independent, privately-owned and locally controlled corporations." [Lewis vs. U.S., 680 F. 2d 1239, 1241]

    One US congressman said,

    "We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. Some people think the Federal Reserve Banks are U.S. government institutions. They are not government institutions. They are private credit monopolies; domestic swindlers, rich and predatory money lenders which prey upon the people of the united States for the benefit of themselves and their foreign customers. The Federal Reserve Banks are the agents of the foreign central banks. The truth is the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly which operates the Federal Reserve Board." [Congressman Louis T. McFadden, Chairman of the House Banking & Currency Committee, speech on the floor of the House of Representatives, June 10, 1932]

    Remember Executive Order 11110 by Kennedy.

    On June 4, 1963, President John F. Kennedy signed Executive Order No. 11110 that returned to the U.S. government the power to issue currency, without going through the Federal Reserve.
    With the stroke of a pen, Mr. Kennedy was on his way to putting the Federal Reserve Bank out of business
    Five months later, Kennedy was assassinated & the Feds, FBI, CIA were quick to blame Oswald as the lone killer.

    In all, 4 US Presidents opposed the Federal Reserve. Abraham Lincoln, like Kennedy, was assassinated after he opposed the Federal Reserve and starting having the US Treasury printing the Greenbacks currency.

    Interestingly, today is the day the US is supposed to declassify the thousands of classified files on the Kennedy Assassination. I wonder why they still withhold some due to the so-called National Security reasons.

    Anyway, regardless of whether all of the above are true, one thing is true. We, Micronesians, have succumbed to the Western monetary system, the modern day form of slavery. We are in debt like most Americans, and we pay taxes to the IRS, essentially the collection agency of the Federal Reserve cartel. Money is a form of social control and most Americans including us Micronesians are debt slaves.


  • Here's another interesting twist,

    Remember that State Street Corp is one of the major shareholders or owners of Goldman Sachs. The official records of ownership show that, while much of Goldman Sachs´ stock is owned by the public, a controlling share is in private hands, held by a consortium, or pool, of just 221 persons. The chief owner, however, is Lord Jacob Rothschild,/the Rothschild family,

    During Trump's campaign, Trump was critical of Goldman Sachs during his campaign and quick to connect his opponents to Wall Street. He said, "I know the guys at Goldman Sachs. They have total, total control over him,” Trump said of Sen. Ted Cruz (R-Texas) at a rally in South Carolina last year. "Just like they have total control over Hillary Clinton

    But then when Trump became President, he nominated the following former Goldman Sachs execs:

    Stephen Bannon, Chief Strategist Whitehouse - now removed.(former Goldman Sachs executive, Merges & Acquisitions Banker)

    Steven Mnuchin - Treasury Secretary (former Goldman Sachs executive)

    James Donovan - Deputy Treasury secretary (a Goldman Sachs Managing Director)

    Gary Cohn - Director of the White House National Economic Council. (former Goldman Chief Operating Officer)

    Dina Powell - White House Senior counselor for Economic Initiatives (Goldman’s Head of Impact Investing)

    Damn, State Street Corp's power is all over I guess. They better not mess up our Trust Fund.
  • Wow, one rich family playing Volleyball with international economy. Interesting.
    Thanks again Anti.
  • Regarding RMI's electronically stolen 1 million dollars, it is scary given that a lot of strict protection were put in place to prevent such unauthorized withdraws.

    First, it's my understanding that the $1 million was stolen from the account which requires the signature of the Dept of Interior's Office of Insular Affairs (OIA). This is the same office that has been pounding on FAS countries on the issue of accountability of Compact Funding; and at times to the extent of withholding Compact funding in order to ensure compliance.

    It sounds that one of the accounts require local authorized signatures to withdraws the funds. The other bigger funds require authorization of OIA Director--to ensure that local government people would not be tempted to withdraw from this second/bigger account.

    It seems what happened is this: the hackers were able to make copies of the local signatures and provided them to withdraw funds from the more restricted funds that only the OIA Director is signatory. And the problem is that the representatives of the Custodian did not very the signatures; and allowed the funds to be withdrawn.

    If this is true, then, OIA is liable so as the Custodian of the RMI Trust Fund. They should be responsible to go find the hackers and the money; and return the funds to the appropriate account.

    What is scary about this is that even with the best protection in place, the hackers were able to get their hands on the funds; and make several withdrawals for about a million dollars. Let's hope that more care, even on the part of OIA, will be exercised in the future.
  • From the news article in the Marianas Variety:

    “State Street has taken total responsibility for the lapse in their procedures leading to the account’s loss,” said Frank Armstrong, who is President of the Florida-based Investor Solutions, Inc., which manages the D Account for the Marshall Islands. “State Street is well along in the process of making the accounts whole, pending only receipt of original affidavits from the government. They are acting with the highest level of integrity to correct the situation.”
  • FM, thanks for the update. It's good to hear that the firm that's managing this account is taking responsibility to make the accounts "whole". I am assuming it means all the lost funds will restored without cost or loss or charges to the RMI Fund.

    A couple of lessons to note:

    1. Make sure that whoever is managing your big fund (endowment, retirement, etc.)and it's custodian do have the financial backing plus insurance to cover this kind of loss.

    2. DOI's OIA as well as other federal agencies which serve as gatekeeper or overseeing these kinds of funds need to improve and keep improving their protocols against hacking and other impacts by bad actors. If it is not done yet, I think OIA should evaluate itself whether or not it is capable of preventing these kinds of hacking.

    We depend on the wisdom of OIA Director and his staff to protect the COFA funds; so it needs to review its procedure and bring in the very best in hacking prevention to help out. Since this hacked account that was under OIA's oversight--requiring his signature--the $1 million loss should have been detected by OIA officials.

    3. I hope all Micronesians who are responsible for overseeing different Funds will attend the upcoming APAFS conference in Manila where lectures and presentations focus on investment schemes and fiduciary responsibilities. I also hope the Manila conference will make a presentation regarding hacking, loss of funds, and ways and strategies to avoid these kinds of unlawful and unauthorized transfer of funds.
  • Funds illegally withdrawn from the RMI trust fund fully restored

    By Press Release | Posted on Oct 30 2017

  • That's a good news and is a relief for those managing big funds--in the millions. It's good news for RMI and DOI's OIA. This is a wake-up call; and it probably will not be the last. Scary!
  • imageoh that's good to know but they're bastards doing it!!
  • Who did it, radada? The thieves haven't been caught yet.
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