Venezuelan banking scandal widens

[demoleft]

Source: bbc

What began as a seemingly routine government intervention into a small number of failing banks has grown into a corruption scandal in Venezuela which has claimed the political career of one of President Hugo Chavez's most trusted aides.

When Jesse Chacon, the Science and Technology Minister, handed in his resignation to Mr Chavez on Sunday after his brother, Arne Chacon, was arrested over the banking scandal, it must have sent shockwaves through the upper echelons of the Venezuelan government.

After all, Jesse Chacon had been a close ally to Hugo Chavez for almost 20 years, even going to prison with him for taking part in a failed coup in 1992.

Many Venezuelans were left wondering if a man like Mr Chacon was to leave government over the affair, who else could be involved?


Read more: http://news.bbc.co.uk/2/hi/business/8401020.stm

[Octafish]

1. Welly well well. Maybe the Wall Street banksters will be next to see the inside of a prison cell...

If Hugo's best friends can get in hot water...

[Peace Patriot]

2. "...it must have sent shockwaves through...". Colorful, gossipy language at the BBC.

They really are becoming as bad as Rotters and the Associated Pukes, on some subjects--especially Chavez.

"Many Venezuelans were left wondering...". Did a poll, did they? "Many"?

And where did they get this subtitle from: 'Culture of cronyism'?

"Culture of cronyism
"The opposition parties say the whole tangled web of associations, family relationships and apparent white collar crime reveals something they have claimed for some time: that a culture of cronyism, known as the 'Boli-burgesia', exists in the heart of the Chavez government...".

More gossip:

"With elections for the national assembly due next year, it still isn't clear how the scandal could affect...". Then why do they speculate on it, if "it still isn't clear"? This is GOSSIP, not reporting.

-----------------------------

Lulu da Silva survived a very similar scandal, even closer to him than this is to Chavez, early in his tenure as president of Brazil, by acting swiftly, which the Chavez government has done.

The two major private banking associations in Venezuela have fully endorsed the government's actions, and further have spoken to the rock solid stability of the Venezuelan banking system. So all this GOSSIP that the BBC is pumping out, about as yet "unclear" impacts on the economy or politics of Venezuela, is just more corpo-fascist BS, trying to find another way of breaking the elected, socialist government of Venezuela and putting "first world" banksters back in charge of all the resources and labor forces of South America.

The BBC didn't go to the other bankers, or the main private banking associations, with questions about these events, or, if they did, they didn't like the answers they got and edited them out. Instead, look at who they quote on almost every issue in this article. Currrent rightwing politicians and former rightwing government operatives.

Chavez gets NO credit for immediately protecting all depositors, for offering FOURTEEN PERCENT interest on savings deposits at the Bank of Venezuela, for having the confidence of the rest of the banking industry, and for prosecutors and the police acting swiftly to shut down these banks, as they did to the Stanford Bank a while ago (they were the first to do so). This BBC article might as well have been written by rightwing opposition.

[WriteDown]

3. Its amazing he was able to get away with it for so long...

Chavez must be a bad judge of character. :rofl:

[ChangoLoa]

7. Do you understand the meaning of a 14% interest rate in a 25-30% inflation context?

Those who save lose 11-16% of their money's value every year IF they are lucky enough to have a bank account. This regulation results in a transfer of value from the people to the banks. What's your conclusion again?

[EFerrari]

10. In addition to comparing apples and spare tires, you are off topic. nt

[ChangoLoa]

11. Think again. nt

[EFerrari]

9. It probably was. It's days old news and nothing new to recommend it.

Just trying to keep "scandal" in the headlines.

[Braulio]

12. 14 % Interest with 30 % inflation rate.....

buy "Saving for Dummies".

[EFerrari]

4. This is not LBN and has already been posted since, iirc, Sunday?

Edit: I can't remember if the minister resigned Friday or Monday but it's a dupe.

Link to Saturday Story of arrest:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=405x27415

LBN Link to story of minister stepping down:
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=4172959&mesg_id=4174051

[Bacchus39]

5. its fine right where it is n/t

s

[Judi Lynn]

6. It's been done to death, as always. Old story. n/t

[ChangoLoa]

8. Private banks operating with deposits from ministries and state agencies

Public money that amounted for 35% to 55% of their total funds... disappeared. After one and a half years of warnings from the Venezuelan SEC (SUDEBAN)!

The complicity within the state is obvious and should be investigated, as the president of the PCV (communist party of Venezuela) declared. Let's see what happens...

:popcorn: