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| A number of Latin banks had credit lines to Refco |
It has happened again.
This time, though, there’s a twist: the banks losing money weren’t taking the deposits, they were making them. Banks across the world, but especially in Venezuela and central America, had accounts at an unregulated Bermuda-based financial institution called Refco Capital Markets.
“RCM is a nightmare for a big part of the financial intermediaries tier of the Venezuelan banking system,” says a veteran Venezuelan financial industry observer.
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