Opposition politician demands probe of Venezuelan state bank

[naaman fletcher]

he Federal Reserve on Friday announced fines totaling $1.8 million against the Venezuelan government bank and its agencies in Miami and New York.

The Federal Reserve also announced an order restricting the bank from "making new loans or taking on new customers" without the approval of U.S. banking supervisors.

U.S. authorities said in the order that the Venezuelan bank had engaged in "recklessly unsafe and unsound" banking practices in the United States, including operating with insufficient capital and failing to have adequate management or oversight.

Venezuelan banking authorities in 2009 intervened to address problems in the bank's management after detecting $88 million in losses in two years. That measure by Venezuelan regulators was lifted in January.

http://www.vheadline.com/readnews.asp?id=101753

What a farking joke. The US banks just lost what? hundreds of billions? And did they have enough capital to absorb the losses? No, the taxpayers had to bail them out. I wouldn't be surprised for a second if the Venezuelan bank engaged in reckless behavior, and I wouldn't be surprised if it was used for cronyism, but at the same time I would bet money that it is/was more sound than Citi/JP Morgan, etc.