Venezuela Bans Stanford Execs From Leaving Country

After panicked depositors began pulling out their money, the OPEC nation this week took over the operations of the bank.

Venezuela on Friday said it has barred directors of Stanford Bank Venezuela from leaving the country days after seizing the bank in the wake of fraud charges against billionaire Allen Stanford, the bank's owner.

After panicked depositors began pulling out their money, the OPEC nation this week took over the operations of the bank, a sister company to the Stanford International Bank, which faces a lawsuit by U.S. authorities.

The government prosecutor's office said in a statement it has approved a "measure prohibiting the exit of the country by members of Stanford Bank Venezuela, as part of an investigation that resulted from the takeover of the bank."

The finance ministry had said Stanford Bank Venezuela, which is not consolidated with the much larger Stanford International Bank, had been in good financial position but was losing cash quickly due to the growing Stanford scandal.

The government plans to quickly auction off the bank.