05/25/09

Banco Industrial de Venezuela broke for the umpteenth time

by Larry Email  134 words

The government doesn't call it bankruptcy, but "intervention" and the brainless people that write the news in the media are content with repeating what the SUDEBAN (National Bank Comptroller) has decreed as the "intervention" of the Banco Industrial de Venezuela. But how can this be if the government is already the owner of the bank, operates it and is its major client? The government pays and gives itself change and notwithstanding all that the bank manage to go bankrupt for the umpteenth time.

In any case, the Industrial Bank has had to be rescued at least five times during the government of Hugo Chávez. The last time, that I followed, was in 2005, when the Banco Industrial needed the injection of 171 million bolivares fuertes (some 79 million dollars at the official exchange rate). In my

For all the depositors of the soon to be nationalized Bank of Venezuela: get a hold of yourselves. The Bank of Venezuela will be progressively destroyed by the banking socialism of the government and in less than a decade we will be hearing news about the "open interventions" at the Bank of Venezuela.

According to the economist Francisco Faraco since 1938, the year of its creation, the BIV has needed to be "rescued" 24 times. In my opinion this bank is a parasite that should be allow to die once and for all, something that could happen once the government takes control of the Bank of Venezuela, as reported by Entorno Inteligente. It makes sense, because from now on the government will have to engage in "rescuing" the Bank of Venezuela.

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