Venezuela arrests bank chief close to government

[Judi Lynn]

Venezuela arrests bank chief close to government
Sun Dec 6, 2009 4:34am GMT

* Arrest in purge of businessmen with government links

* Minister calls for tighter financial regulation

CARACAS, Dec 5 (Reuters) - Venezuela arrested the brother of one of President Hugo Chavez's senior ministers on Saturday, the latest move in a clean-up of the financial system that has closed banks and pointed to corruption close to the government.

Police arrested Arne Chacon Escamillo, president of one of seven small banks seized by the authorities this week, on unspecified charges linked to irregularities in the bank he ran in South America's top oil exporter.

"Chacon Escamillo, the president of Banco Real, was detained in the afternoon of Saturday, Nov. 5, after handing himself in," the attorney general's office said.

The arrest of the banker, whose brother Jesse Chacon has worked with Chavez for nearly twenty years and is now science minister, shows the president clamping down on a new class of businessmen made rich by their connections to the government.

In a turbulent week for Venezuela, the government took control of the seven banks owned by such businessmen, who are known as "Boli-bourgeoise," in reference to Chavez's idol and Venezuela's independence hero Simon Bolivar.

More:
http://uk.reuters.com/article/idUKN0513222720091206?rpc=401&feedType=RSS&feedName=americasRegulatoryNes&rpc=401

[Judi Lynn]

1. Venezuela Arrests Banco Real President, Board Member (Update1)

Venezuela Arrests Banco Real President, Board Member (Update1)
By Steven Bodzin

Dec. 5 (Bloomberg) -- Venezuela arrested the president and an alternate board member of Banco Real Banco de Desarrollo after seizing and shuttering the company as part of a series of probes that has forced the closure of seven banks since Nov. 20.

Arne Chacon, 46, the bank president, will be indicted tonight “for alleged connection with the investigation initiated as a result of the intervention of seven financial institutions,” the country’s top prosecutor said today in an e- mailed statement. Milagros Vivas, an alternative member of the board of directors, will also be charged, according to the statement.

Attorney-General Luisa Ortega said yesterday she had requested 10 arrest warrants and 19 orders to block people from leaving the country in connection with the bank closures, according to the statement.

Ricardo Fernandez Barruecos, owner of four of the closed banks, was arrested for buying a bank with depsitors’ money. Jose Camacho and Caribay Camacho de Castro have also been arrested for alleged misuse of depositors’ money and improper lending, according to the statement.

http://www.bloomberg.com/apps/news?pid=20601086&sid=a3JfalpS0X.E

[EFerrari]

2. I'm glad to see that these people are being dealt with

and at the same time, a little worried about what the consequences will be.