Credit Suisse Institutes Trader Ban on Venezuela Bonds

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Credit Suisse is banning its traders from dealing with a batch of Venezuelan bonds, fearing any potential reputational fallout from being seen to support the increasingly autocratic government of Nicolás Maduro, the Financial Times reported. Goldman Sachs was earlier this year lambasted by the country’s opposition for its asset management arm’s purchase of $2.8bn worth of Venezuelan bonds issued by the state oil company, PDVSA, which opposition members said amounted to a financial lifeline for the authorities. Nomura also reportedly bought a smaller chunk of Venezuelan bonds at about the same time as Goldman. But Wall Street is increasingly concerned about the reputational risks posed by the degenerating situation in the oil-rich but stricken Latin American country, where the government has forcefully cracked down on the opposition amid a mounting humanitarian crisis. The US imposed sanctions on more than a dozen Venezuelan officials and President Donald Trump has branded Mr Maduro a “dictator”, but the government has continued to tighten its grip on the country. Read more. (Subscription required.)