More Venezuelan private banks targeted: Chavez

Reuters ^ | December 2, 2009 | Walter Simon

[UAConservative]

CARACAS (Reuters) - Venezuelan President Hugo Chavez on Wednesday said his government may target more banks for state intervention, sparking investor jitters two days after his government shut four private banks.

Venezuelan benchmark bonds fell by the most in three months and the cost to insure Venezuelan debt shot to its highest since July amid what one analyst called "significant distress" in the financial system.

Authorities closed four small banks on Monday owned by a wealthy businessman with close ties to the government, citing internal irregularities.

That brought hundreds of worried depositors onto the streets, and sparked talk among Venezuelans that more of the nation's nearly 50 banks may also be closed or taken over by the state.

[UAConservative]

Sign of things to come?

Probably, if we don't stop the Marxist tide sweeping the country.

[Prole]