Money-Laundering Report Gives Argentine Leader a New Woe
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Just as President Fernando de la Rúa was starting to recover from a series of political setbacks, a report from Washington on money laundering has created a new crisis for him. The report, issued today by a Senate subcommittee, found that several Argentine financial institutions laundered money from drug dealing and bribery. Senior members of Mr. de la Rúa’s coalition are using the report to strengthen their claim that the president of the central bank, Pedro Pou, has concealed information on money laundering since 1996. They insist that he must be fired. Mr. Pou denies wrongdoing. President de la Rúa has supported Mr. Pou so far. Bankers and investors see the attacks as a guise for the real target: the linking of the Argentine currency to the dollar. Breaking that link could cause a devaluation. But in supporting the central banker, Mr. de la Rúa has put some distance between himself and some high-placed allies who want tougher measures against corruption. A preliminary report from Washington, from the Democratic staff of a Senate subcommittee on investigations, implicated two institutions, the Mercado Abierto and Banco Republica, in illicit transfers of money through the United States banking system. More : query.nytimes.com |