“What is going to happen is that everyone’s deposits will get penned up … (and) pass into the state’s hands and there will be no more money for anyone”

President Hugo Chavez’s threat to nationalize banks caused Venezuelan stocks to fall Friday, while one bank president warned depositors would be worst hit by such a move.

On Friday, Caracas‘ main stock index fell 2.74 percent, while its index of financial stocks fell 3.12 percent.

The decline was led by Venezuelan banks like Mercantil Servicios Financieros CA, Banesco Banco Universal and Venezolano de Credito whose shares are mostly held by local investors. But BBVA Banco Provincial, owned by Spain’s Banco Bilbao Vizcaya Argentaria SA also fell. Read more

Original post by The Associated Press