NewsWhore
05-02-2006, 02:10 PM
According to former banker Ramon Baez Figueroa, the Banco Intercontinental (Baninter) and Baninter Group's collapse was promoted by market competitors that formed alliances with politicians close to power and by former President Hipolito Mejia himself. Baez makes these accusations in a lengthy legal document, a copy of which he sent to Listin Diario. In the document, Baez explains that the financial system was seriously damaged by interfering politicians who have insisted on controlling it as a way of expanding their control of society and, at the same time, by the actions of bank executives who seek influence in political circles for the benefit of their own business and to protect themselves or eliminate competitors who affect their interests. According to Baez, all local banks engaged in the same operations as Baninter with the "tacit" approval of authorities for more than 40 years, giving the practices the characteristics of the "law of custom". What made the Baninter crisis different from all previous situations was the attitude of the government authorities, said Baez Figueroa. Whereas previous government administrations would seek solutions by agreements of understanding, sales or mergers with other banks, President Hipolito Mejia sought the destruction of Baninter in 2003.
This attitude became apparent when a lawsuit was filed in the case of the credit card that Baninter had issued to Hipolito Mejia, and that was used irregularly by former Lieutenant Colonel Pedro Julio "Pepe" Goico Guerrero who at the time was perceived as the armed forces member closest to Mejia.
This legal action was interpreted as directed at becoming an obstacle for Mejia's reelection, which was already being promoted by his political allies. Baez claims that Baninter was first subject to a campaign of false rumors and later, the decision was made to destroy it, as was announced to him by then President Mejia.
Baez adds that the practice of bank shareholders receiving loans beyond the limits allowed by law was a general practice accepted by the financial authorities. This resulted in the emergence of business groups of enormous social and political influence around the banks. This practice was so common that long after Mejia's administration destroyed Baninter, other banks continued to own companies which they have had to sell off one at a time, not all at once, according to Baez. This is the case of Banco Popular and others that have had serious financial difficulties, such as Banco del Progreso. This opportunity to regularize itself was denied to Baninter, claims Baez.
Link To Original Article (http://www.dr1.com/index.html#9)
This attitude became apparent when a lawsuit was filed in the case of the credit card that Baninter had issued to Hipolito Mejia, and that was used irregularly by former Lieutenant Colonel Pedro Julio "Pepe" Goico Guerrero who at the time was perceived as the armed forces member closest to Mejia.
This legal action was interpreted as directed at becoming an obstacle for Mejia's reelection, which was already being promoted by his political allies. Baez claims that Baninter was first subject to a campaign of false rumors and later, the decision was made to destroy it, as was announced to him by then President Mejia.
Baez adds that the practice of bank shareholders receiving loans beyond the limits allowed by law was a general practice accepted by the financial authorities. This resulted in the emergence of business groups of enormous social and political influence around the banks. This practice was so common that long after Mejia's administration destroyed Baninter, other banks continued to own companies which they have had to sell off one at a time, not all at once, according to Baez. This is the case of Banco Popular and others that have had serious financial difficulties, such as Banco del Progreso. This opportunity to regularize itself was denied to Baninter, claims Baez.
Link To Original Article (http://www.dr1.com/index.html#9)