Chavez says he will take no more banks

Venezuelan President Hugo Chavez said Saturday that he has no plans to take over more banks at this time, and he urged people not to withdraw their deposits.

Chavez sought to calm nervousness about banks less than a week after the government seized control of Banco Federal, the country's eighth largest bank.

He said there is no reason for anyone to "run to the bank to take out money, scared that Chavez is going to finish off the banks, no." "I don't have plans to intervene in any bank," Chavez said, adding that regulators seized control of Banco Federal to protect clients because the bank was broke.

Bank owner Nelson Mezerhane, a Chavez opponent, has denied that and said the bank takeover was politically motivated.
Earlier Saturday, Vice President Elias Jaua denounced what he called a campaign of rumors by the government's opponents, particularly on the Internet, that he said seeks to set off panicked withdrawals and create a banking crisis.

Jaua, who was accompanied by leaders of the private banking sector, said Venezuela's financial system is in solid shape. In the past seven months, the government has seized control of about a dozen small banks, in many cases saying it was necessary due to financial problems at the banks.