The Scandel at Banco Intercontinental

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BANCO INTERCONTINENTAL (BANINTER)
The scandal
BanInter was the second largest privately held commercial bank in the Dominican Republic before collapsing in 2003 in a spectacular fraud tied to political corruption. The resulting deficit of more than US$2.2 billion was equal to 12% to 15% of the Dominican national gross (LatinNews, 2013).
The bank's main owner, Ramón Báez Figueroa, was accused of operating a secret “bank within the bank” by officials for more than ten years (Economist, 2003).
Dominican Republic, President Leonel Fernández, introduced a number of reforms to the country’s economy. With his approval and the approval of the nation treasury, Banco Central, Daez merged his bank with Banco de Comercio (LatinNews, 2013). The terms of this deal were that, Banco Central would absorb Banco de Comercio’s liabilities, leaving BanInter walked away with the profitable portfolios that belonged to Banco de Comercio.
BANINTER grew quickly into a typical family-run corporation, buying up or controlling smaller companies. The Group managed to control the country's largest media group, the oldest and leading newspaper; four television stations, a cable television company, and more than 70 radio stations, thus making him powerful and highly influential (Wikipedia, 2013 ).
On May the 15th, Baez, along with two other executives, were arrested for embezzling 55 billion Dominican pesos ($2.2 billion) from the family bank. Two-thirds of the money deposited by customers in the bank

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