Is the seizure an asset grab?
The Associated Press January 18, 2010, 8:20PM ET text size: TT
Venezuela's gov't seizes control of 3 banks
CARACAS, Venezuela
Venezuela's banking regulator has ordered the takeover of three private banks, citing alleged irregularities.
The decision to seize control of the banks -- InverUnion Banco Comercial, Banco Del Sol and Mi Casa -- came several weeks after President Hugo Chavez's government took over management of eight other private banks and brokerage firms that allegedly violated banking laws.
In a statement issued on Monday, Sudeban, Venezuela's state-run banking regulator, said the takeovers were deemed necessary due to "serious administrative and managerial problems" that put the banks in financial trouble.
Sudeban said more than 95 percent of the deposits held by clients of the three banks would be guaranteed by the government.
