Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Venezuela 'takes over local Stanford bank'

Reuters
Thursday 19 February 2009 13:26 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Venezuela took control of a local bank owned by Allen Stanford, who faces US fraud charges, a government source said today as the impact of the American case spread through Latin America.

In recent days, depositors worried the trouble at Stanford International Bank would hurt Stanford Bank Venezuela and withdrew cash from the small local bank even though the companies' assets are separate, industry officials and bank customers said.

The government of President Hugo Chavez had sought to calm depositors' nerves, declaring yesterday the bank was healthy and even saying it was working to prevent a run on the bank.

But late yesterday, authorities decided to take action, the government official with knowledge of the deliberations said.

The Finance Ministry called an unusual early morning news conference to make an announcement, although it did not say what the topic would be.

Chavez, who blames problems in the global banking system on capitalist greed, said last year he would expropriate any bank that failed rather than bail it out.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in