1994 Venezuelan Bank Scandal

Michael Pollak mpollak at panix.com
Thu Sep 9 07:42:43 PDT 1999


Recent articles on the dramatic events in Venezuela have mentioned an enormous banking scandal that seems to have set the stage. Does anyone know where I can find a decent overview article?

except from a Nando [News and Observer, www.nando.com] article:

The two judges provoked an outcry when they dropped charges last

Friday against executives and mid-level employees of four Venezuelan

banks that were caught up in a 1994 scandal that nearly sent the

entire financial system under.

The government was forced to take over 18 banks and financial

institutions - 40 percent of the system's total - and spend $10

billion on a bailout that sent inflation spiraling to record levels

and plunged the economy into a prolonged recession.

About 200 bankers fled the country and have been living overseas as

fugitives. To date, just one has been extradited to Venezuela. The

scandal caused thousands of depositors to lose their money.

Michael

__________________________________________________________________________ Michael Pollak................New York City..............mpollak at panix.com



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