Half a million mexicans could lose their savingsBy Elliot Bullman
583 thousand Mexicans face losing their entire savings owing to poor management.
The National Commission for the Protection and Defense of Users of Financial Services (Condusef) reported that 97 savings banks throughout the country are at risk of bankruptcy and with that, of causing the 583 thousand users in the country to lose their savings.
The Commission revealed that these Cooperative Savings and Loan Societies (SOCAP) are not in a position to operate due to poor resource management.
According to the opinion issued on Condusef’s website, they are in a clear situation of insolvency or potential bankruptcy, or they did not allow to be evaluated in a timely manner in the terms established in the Law, so they cannot operate or capture resources from their partners.
Most of these Cooperative Savings and Loan Societies operate in places where there is no access to a bank and are mainly located in Jalisco, Oaxaca, Michoacan, Veracruz and Puebla.
In Mexico City there are only two institutions that are unable to continue operating: Caja Solidaria Jilotepec and Popbox.
Condusef’s head Mario Di Constanzo says the only way to protect people’s money is to ensure that the savings banks that are bankrupt are absorbed by larger institutions.
- North Korea threatens to cancel Trump summit
- AMLO’s win could be a landslide with congressional majority: UBS
- Google and Facebook, big winners after ban on sports betting was overturned
- Would you pay your ex a 'break-up fee'?
- Why Trump suddenly reversed course on sanctions against Chinese tech giant ZTE
- Are you ready for retirement? Here’s how to know.
- Tariffs on steel for Mexico and Canada will depend on NAFTA: Ross
- Sergei Skripal reportedly briefed European intelligence agencies about Russia
- The EU's billion-dollar deals at risk in the Iran nuclear deal
- Pompeo: U.S. firms could invest in North Korea and Kim may get ‘security assurances’
- 'Unauthorized transfers' siphon funds from Mexican banks: central bank
- RBS is swallowing a 'milestone' $4.9 billion fine for its role in the financial crisis — and shares are going up