Chavez Threatens to Nationalize Banks

(AP)  President Hugo Chavez threatened on Sunday to nationalize banks that violate regulations, saying he'll do whatever is necessary to prevent irregularities amid a scandal that already has prompted his government to take over management of four banks.

"I warn the country's private bankers: I'll take away any bank from anyone who slips up," Chavez said during his weekly television and radio program. "Do you want me to nationalize the banks?" Chavez asked, then said he'd have "no problem" ordering state takeovers.

The government took over management four small banks on Nov. 20, citing various irregularities.

The four banks - Canarias, Confederado, Bolivar and BanPro - account for 5.7 percent of Venezuela's banking sector. The banks were purchased in September and October by a group of investors headed by Ricardo Fernandez, who is involved in the food industry and sells products to a network of state-run subsidized markets known as Mercal.

Fernandez and his lawyer Jose Camacho have been arrested on charges of misappropriating deposits and providing loans to other businesses in which they were investors.

The state-run banking agency has appointed officials to oversee operations of the banks. The National Banking Council, a private banking association, has voiced its support for the government takeover, saying the initiative is aimed at protecting depositors.

Since taking office over a decade ago, Chavez has ordered the nationalization of major players in steel, electricity and oil sectors. His government has also seized control of dozens of other private businesses, including coffee processing plants, sugarcane mills and cattle ranches.

[yaneemctrenee]

I love it when Chavez follows in Obamas footsteps. It proves we're on the right path in America every day! Be proud America!!!

[nextgenman09]

Chavez Threatens to Nationalize Banks
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This is one case where Bush, Paulson and the GOP beat him to it.

[justdatrooth]

Chavez is Obama's good buddy. Obama's already screwed up half of our banks so why why shouldn't Chavez, Obama's brother in "the cause", do the same?

[nextgenman09]

No, Bush did that. I'm truly sorry that Glenn Beck lied to you.

[dragon8me]

They should be in this country. Especially the Federal Reserve Bank.

[us_1776]

Chavez, too late. Bush already beat you to it. We nationalized our banks with the Bush T.A.R.P. bailout.

[erichsh]

To brianbwb and all the other socialists out there: since you're all in favor of nationalizing banks, just suppose next election we have another George Bush in office and now HE runs the banks. Still OK with nationalization?

[brianbwb-2009]

Yup, as long as we can vote every four years for the president whose administration will ensure that we, as stockholders, are represented.

Also, my agreement with Chavez is not that he nationalized the banks, as he has not done so yet, but that he blatantly told the crooked bank owners what was in store if they don't shape up.

Our banks need to have the exact same stick held over them, abuse it, you lose it.

I suppose, by your question, that you would rather the banks remain in the hands of incompetent, or crooked people as they are now.

[erichsh]

by brianbwb-2009 November 29, 2009 11:10 PM EST
I suppose, by your question, that you would rather the banks remain in the hands of incompetent, or crooked people as they are now.

No, not at all. My problem with your position is that you seem to assume that the government invariably does a better job at (whatever) than private industry does. But yet the government is responsible for the biggest criminal Ponzi schemes of all - whether it be the borrowing of trillions of dollars with no viable means of repayment, or the Social Security house of cards, etc. And if you don't like the government's way of doing business, sure there are elections, but I'd bet you didn't vote for Bush twice. And as it stands now, if I don't like my bank I can always switch - but if the one-and-only bank is run by the government, as you would have it, then so much for that recourse.

[wyodutch]

Good on Chavez... Here in Murka, the revolving door between Goldman-Sachs and the federal government makes such cleansing action near impossible.
.
And... We, The People respond like dancing monkeys when the Banksters get their multi-million dollar bonuses and we attack the auto workers as "overpaid".

[squidly8]

I was truly disappointed by Chavez and the writer of this article. We is the condemnation and blame of the US and GWB?

[brianbwb-2009]

It is already obvious, and therefore not germane to addressing the problem.

[brianbwb-2009]

"I warn the country's private bankers: I'll take away any bank from anyone who slips up," Chavez said during his weekly television and radio program. "Do you want me to nationalize the banks?" Chavez asked, then said he'd have "no problem" ordering state takeovers."

Now that is the kind of guts we need in the US, use it right, or lose it tonight!

[YerSooWrong]

Chavez can solve Venezuelas finacial problems overnight by printing more money. The kind with his face on one side and his rear on the reverse side. They'll become collector's items after the hanging.

[wyodutch]

We could do a lot worse than following Chavez' example on how to deal with the Shylock banking industry.

[bozworth4]

Kinda sound familiar?? Except in USA we reward bank execs that are crooks.
It has happened here several times in the last year. So what? Big brother at work. Orwell was a little off with his book!
Now if let the politician greed take over, some bank crooks would be put in jail!!! Politicians would own and run everything sooner than it is happening NOW! Fall in line sheep.