You have commented 339 times on Rantburg.

Your Name
Your e-mail (optional)
Website (optional)
My Original Nic        Pic-a-Nic        Sorry. Comments have been closed on this article.
Bold Italic Underline Strike Bullet Blockquote Small Big Link Squish Foto Photo
Submit your comments on this article
Caribbean-Latin America
Hugo takes control of Spanish-owned bank
2009-07-05
CARACAS, Venezuela (AP) - President Hugo Chavez's government assumed control of Venezuela's third-largest bank on Friday - making the state the largest player in the nation's banking system.
Sorta like Bambi and Timmy seizing the New York banks, but on a smaller scale ...
The purchase of the Spanish-owned Banco de Venezuela gives Chavez's socialist government control over more than one-fifth of bank deposits as he tightens his grip over the economy. The acquisition will "strengthen the public banking system," which favors sectors including agriculture, energy, housing and tourism, Finance Minister Ali Rodriguez said in a statement.
How much of the money gets moved to 'safe' locations?
In May, the Venezuelan government agreed to pay Spain's Grupo Santander $1.05 billion for the bank, ending months of stalled negotiations. At the time, Banco de Venezuela had 3.2 million clients, 10 percent of the country's deposits and 6,000 employees.

Combined with other state banks, the government will now control about 21 percent of deposits and 16 percent of loans, a payroll of 15,000 employees and 651 bank branches.

The deal went into effect on Friday with an initial payment of $630 million. The rest will be paid in two equal installments in October and December.

Like the rest of the economy, Venezuela's banking sector is already highly regulated, with the government dictating just about everything interest rates and commissions.

Under Chavez, Venezuela has nationalized major players in the steel, electricity and other sectors, including four major oil projects, since 2007. The Venezuelan consulting firm Ecoanalitica calculates those nationalizations have cost Chavez's government some $23 billion.
But have provided jobs and graft for all of Hugo's people ...
Posted by:Steve White

#3  Glenmore, it's taken forever to get banking sanctions against the Norks and the Mad Mullahs™, and we're still not there. Good luck trying to get sanctions against Oogo ...
Posted by: Steve White   2009-07-05 10:46  

#2  Put in in a jar under the crabapple tree, Glenmore. That works, so long as you don't sell the house.
Posted by: trailing wife   2009-07-05 09:13  

#1  Doc White, there should not BE any 'safe locations' for such funds. Time for banks and civilized governments to see to it. But I guess that's a hopeless dream with all those big US banks now part of the Obama neo-com (as opposed to the 'evil' Bush neo-cons) administration.
Posted by: Glenmore   2009-07-05 01:21  

00:00