Bank runs hit LatAm over Stanford fraud

Billionaire tycoon Sir Allen Stanford gave himself in after F.B.I. agents found him in Virginia. Stanford has been accused of bilking customers out of over $8 billion dollars via his investment fund and other financial entities.

Stanford’s alleged scam led to bank runs in several Latin American countries and forced governments in the region to take drastic actions. Panamanian branches of Stanford bank were closed while Colombian authorities are seeking details over Stanford’s dealings in that country. Mexican officials are looking into Stanford's supposed links with violent drug gangs.

Venezuela’s government quickly intervened to “stem fears of investors”:

Venezuela has seized a local bank owned by Allen Stanford…after panicked investors withdrew millions of dollars worth of deposits.

Ali Rodriguez, the Venezuelan finance minister, said on Thursday that Stanford Bank SA would be sold and the government would back all deposits, after at least $26.5m was withdrawn in two days.

The move comes despite the Venezuelan government trying to reassure depositors that the local bank was healthy.

Image- BBC News
Online Sources- AFP, Reuters, The Telegraph, BBC News, Monsters & Critics, Al Jazeera English