15 June 2010

VENEZUELA: 1ST UPDATE: Chavez Takes Over Private Bank; Threatens More Assets.

                                    AP/MIAMI HERALD/UPDATE: 17 June/
The government took over management of the private bank Banco Federal after discovering what it called "serious financial" problems. Bank owner Nelson Mezerhane now in the United States condemned the takeover as retribution against him and the critical TV station Globovision he helped found. Banco Federal is Venezuela's eighth-largest bank with about 2.8% of market share. Customers lined up outside some branches Monday to withdraw money before the shutdown took effect. In the last seven months, about a dozen small banks have been seized. Now about 30% of the banking sector is under government control.
Chavez has also threatened to seize Mezerhane's assets including his minority ownership stake in the Globovision TV channel." He should get on a plane to come show his face," Chavez said.