A Wall Street bank is starting to turn a cold shoulder on Venezuela amid the nation’s political crisis.
Credit Suisse (CS) is banning its bond traders from buying two specific Venezuelan bonds — one from the government and another from the state-run oil company PDVSA, or Petroleos de Venezuela S.A.
It is the first major global bank to bar its employees from dealing with certain types of Venezuelan debt.
Bank officials cited Venezuela’s “political climate” and recent events for its decision. That appears to refer to a vote on July 30 that many say turned Venezuela into a dictatorship.
“Credit Suisse does not want to be involved in any transaction or any action which could be perceived as enabling the current Venezuelan regime to continue to violate the Venezuelan people’s human rights,” according to an internal memo at Credit Suisse sent earlier this week.
Venezuelan President Nicolas Maduro organized the vote, which most nations called a foregone conclusion. It allowed him to replace the opposition-held National Assembly with an entirely new legislature filled with Maduro supporters.
The new legislature, the Constituent Assembly, has already thrown out the Attorney General, a critic of Maduro, while the Supreme Court sentenced another political opponent to 15 months in prison.
Handling Venezuelan debt has become an extremely divisive issue….