Venezuela seizes three more banks

CARACAS, Venezuela, Dec. 5 (UPI) -- The Venezuelan government has seized control of three more banks that allegedly violated financial rules, officials say.

Finance Minister Ali Rodriguez said Friday the government of President Hugo Chavez had taken over Baninvest, Banco Real and Central Banco for unspecified rule violations, The Wall Street Journal reported.

The newspaper said Rodriguez, speaking on national television, indicated the banks were closed temporarily to "rehabilitate" them from owners who allegedly used deposits to enrich themselves.

He reportedly issued reassurances to Venezuelans there was no full-blown banking crisis unfolding.

"We're not in front of a crisis in the Venezuelan banking system," the finance minister asserted.

The Journal reported the three banks have joined a list other smaller instituions seized by the government for alleged illegal activities, undermining confidence among depositors who aren't sure which banks will be taken over next.

The three banks are owned by Pedro Torres, a close associate of billionaire Ricardo Fernandez, whose own four banks were also seized last week, the newspaper said.