Editor’s Note: The pot calling the kettle black. The Fed alleges BIV has “recklessly unsafe and unsound” management.
|Banco Industrial de Venezuela (BIV) branch
© AFP/File Juan Barreto
WASHINGTON (AFP) – The Federal Reserve announced sanctions against a Venezuelan state-owned bank on Friday, imposing fines and telling the bank to clean up its act.
The Fed imposed fines totaling $1.8 million against the Banco Industrial de Venezuela for allegedly “recklessly unsafe and unsound” management.
In addition the bank will not be allowed to make new loans or take on new customers without first getting permission from regulators and imposing reforms.
The Venezuelan government took the bank into conservatorship in 2009 amid allegations of corruption and mismanagement. It rescinded that move earlier this year, but remains the major shareholder.
© AFP — Published at Activist Post with license