Chavez has threatened to intervene in more private banks
The Venezuelan President Hugo Chavez announced on Wednesday that his government may intervene in the management of more private banks, shocking investors only two days after authorities closed four banks, officials said. His statement led to the largest decline in government bonds than three months, the local currency fell heavily Bolivar on the black market. On Monday, four banks were closed, owned by businessman Ricardo Fernandez. It brought hundreds of worried owners of deposits in the streets and triggered speculation that more banks may be closed or acquired by the state. Recalling the events of the financial crisis in 1994 which swept half of the banks in the country, opposition television stations, given the histories of worried depositors, despite assurances from the government that will protect deposits in closed banks. “Our radar is aimed at another group of banks,” said Chavez in his speech on Wednesday without giving further details. “Be assured that if we had to intervene in all private banks in Venezuela, I’ll do it,” reassured “the president.
Moreover, there are reports of inspections of public prosecution in brokerage companies.
Tags: bank, banking, banks, Hugo Chavez, private banks, Ricardo Fernandez, Venezuela, Venezuelan President