Venezuela takes control of Spanish-owned Banco de Venezuela in nationalization

By The Associated Press

CARACAS, Venezuela - President Hugo Chavez's government has taken control of the country's third largest bank - Banco de Venezuela.

The government agreed in May to pay Spain's Grupo Santander more than US$1 billion for the nationalization announced last year.

The deal was sealed Friday with an initial payment of $630 million.

The transaction makes the state by far the largest player in Venezuela's banking system.