Tonight the Superintendent of Banks announced the intervention and shut down of three more banks in Venezuela: Inverunion, Mi Casa and the development bank Banco Del Sol. The first two were associated with Chavista boliburgueses, while I suspect the third one was too, but can to swear that was the case. Inverunion was bought by Gonzalo Tirado, former President and chief strategist of Stanford Bank in Venezuela and Jose Zambrano, another infamous friend of the robolution.
While they are small, they add up to the crisis and FOGADE that is supposed to protect depositors will have to provide the funds for this. Since there are none, the Government will have to contribute, more money printing, more inflation, another failure of the revolution and more banks to come.
Even revolutionary movements like the Carapaicas are somewhat pissed at the “robolution” so Chavez better watch out, there are some baseball games coming up and “You’ve struck out” has hit a chord in Venezuela. How many such banners will show up at the baseball finals?
Since I am home and going on a very personal trip tomorrow, I can’t look up at my database to see what deposits were like at these three institutions. You can bet Mi Casa is not as small as you think it is. However, I do know the Government “plans” to solve part of this crisis by increasing the contribution from banks to FOGADE from 0.5% of deposits to 3% of deposits. Many banks in Venezuela don’t even make 3% of their deposits in profits, so you can bet this is another problem in the works. For those that are subscribed, I recommend Francisco Faracos’ interview in today’s El Nacional, one of the most lucid descriptions I have seen recently on the state of disarray of the Venezuelan economy. God helps us!
And by the way, recall I was accused of being scandalous when this financial crisis began. Well, three more added to the list and still counting, another triumph in management and supervision by the robolution. And Chavez helping the panic at each step of the way!
And these were the friendly guys to the silly Chavista process!
The Devil's Excrement 
January 20, 2010 at 8:51 am
good comment Bill Simpson
January 20, 2010 at 4:00 am
It takes a lot of thoughtful work to impoverish what should be one of the richest countries on Earth, Venezuela. I’m glad that I don’t use much gasoline anymore, because the oil exports might be the next thing someone might find a way to mess up.
The situation in Venezuela is starting to remind me of a quote that I once heard about another country very rich in natural resources, Argentina. Some Argentine politician , when asked why the economy was so bad said , “God put us here, so as to give the rest of the world a fighting chance.”
I guess the government knows that no developed economy can thrive without a functional banking system. We are finding that out here in the USA with the disappearance of the shadow banking system on Wall Street. The economy can’t expand without credit. Hang in there.
January 19, 2010 at 6:16 pm
His house in caracas or in Paris?
I think the oppo should ask time after time qué pasa con Bernal…
but perhaps they don’t do it por rabos-de-paja.
Don’t know
January 19, 2010 at 4:33 pm
Bernal is one of the clesest advisors to HRCh in Miraflores as we speak. Barreto’s depression made him gain an extra 30Kg more of weight, now he can’t fit into the door of his house so he’s locked in.
January 19, 2010 at 2:21 pm
OT: Does anyone know where Mr Barreto is? And Bernal?
January 19, 2010 at 8:31 am
A great feeling of despondency and despair is what´s going on right now to Venezuelans…. not even the devaluation, nor the electricity shortage neither the outrageous financial bank scandals… people are in shocked; it is hard to beleive how far this pseudo-bolchevik loser has gone; more appalling; his truly beleivers,that seems to be blinded as to keep following this ridiculness government.
Chavez is not the only one to blame here, but his followers… the ordinary people that support this to happen; the gov.members, and the silent opposition; that is waiting for the sole opportunity to grab the leftovers to their own benefits: This is Venezuela, as always will be.
January 19, 2010 at 6:33 am
Banco del Sol: 100% sure it has something to do with a well connected bolivarian guy. They also dealt for argentinian bonds to the former MF under Cabezas and Isea.
January 19, 2010 at 12:24 am
If their like the other banks , much of the deposits belonged to the government. Im not surprised that the government does not know how much money it has with it stuck in anything that calls its self a bank. Better yet, these banks seem to buy government bonds, dabble in the exchange market and launder money all with the governments money! What a sweet deal and then they get greedy and screw the whole thing up!!