Venezuela: Bankers back closure of troubled banks

[Judi Lynn]

Venezuela: Bankers back closure of troubled banks
Venezuela's banking groups support government's decision to close 4 banks

On 10:16 pm EST, Tuesday December 1, 2009

CARACAS, Venezuela (AP) -- Venezuela's two leading associations of bankers support a move by President Hugo Chavez's government to close four banks after authorities uncovered major financial problems.

The National Banking Council and the Venezuelan Banking Association say the decision this week to permanently close two of the banks, Canarias and ProVivienda, and auction off their assets was "adequate and necessary" to protect clients.

In a joint statement issued on Tuesday, both groups also supported the government's decision to take over the management of two other banks, Confederado and Bolivar.

Authorities have said investors were unable to show the origins of the funds used to buy the banks.

http://finance.yahoo.com/news/Venezuela-Bankers-back-apf-921597883.html?x=0&.v=1

[Judi Lynn]

1. Venezuela probes company linked to troubled bank

December 2, 2009, 2:12PM ET
Venezuela probes company linked to troubled bank
By FABIOLA SANCHEZ

CARACAS, Venezuela

Venezuelan authorities have halted operations at a securities trading company affiliated with a bank that has been closed by the government.

Regulators ordered a shutdown at the U21 company while they investigate its operations.

Clients who showed up at U21's offices Wednesday to check on their investments said employees told them they could not withdraw funds and should wait for further announcements by authorities.

U21 is majority owned by Banco Canarias, which the government closed along with three other banks this week, citing irregularities.

Venezuelan investigators raided the securities company last week, and prosecutors say they seized evidence for pending criminal investigations. Two people have already been arrested in the banking scandal on charges of misappropriating deposits and providing loans to other businesses in which they were investors.

More:
http://www.businessweek.com/ap/financialnews/D9CBBNVO0.htm