Victor Vargas

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In this Spanish name, the first or paternal surname is Vargas and the second or maternal family name is Irausquin.
Victor Vargas
Victor Vargas Irausquin, vice-president of Banco Occidental de Descuento (BOD)
Born
Víctor José Vargas Irausquín

(1952-03-28) 28 March 1952 (age 72)
Chacao, Caracas, Venezuela
EducationAndrés Bello Catholic University
OccupationBanker
Spouses
Carmen Leonor Santaella Tellería
​
​
(m. 1976; div. 2013)​
María Beatriz Hernández Rodríguez
​
​
(m. 2014; div. 2019)​
Children5, including Marie Marguerite, Duchess of Anjou
RelativesLouis Alphonse, Duke of Anjou (son-in-law)

Victor Vargas (born 28 March 1952) is a Venezuelan banker and businessman, best known for being the former owner and president of the now defunct 14th largest private bank in Venezuela, Banco Occidental de Descuento.

Early life[edit]

Victor Vargas was born into a middle class family in the municipality of Chacao, city of Caracas, Venezuela. His mother was the first woman to serve on the Supreme Court of Venezuela.[1] His father was a doctor.[1] He earned his law degree at Andrés Bello Catholic University.[2]

Career[edit]

Vargas started his career as a lawyer.[3]

In the 1980s, he acquired 2% of CapitalBanc Corp., a bank based in New York City.[1] The bank was closed down in the early 1990s after authorities discovered fraud involving Vargas. He was charged and accused of fraud.[1] He is quoted describing the venture as "the worst business" of his life.[1] He shared his experience in October 2007 when he moderated a panel on corporate governance at a Miami conference of the Florida International Bankers Association and the Latin American Banks Federation.[1]

In 1992 he sold a small bank he founded and owned.[1] He used those funds a year later, in 1993, to buy Banco Occidental de Descuento, based in the oil-rich state of Zulia.[1] Many of his clients are oil investors.[1] Another form of revenue comes from purchasing sovereign debt bonds and re-selling them for profit to investors.[1] As of 2015, it was the 14th largest private bank in Venezuela.[4] He serves as its Vice-President.[5]

Victor Vargas presenting BOD's results and plans

Economic alliances[edit]

In 2014, Vargas and BOD partnered with American Express to provide a new credit product for microentrepreneurs. Microentrepreneurs provide for 15 percent of the Venezuelan economy.[6]

Vargas and BOD’s goal was to expand the American Express card to 300,000 cardholders with access to 46,000 businesses by 2013. The card would offer a 4-year rotating term financing option.[7]

National financial leadership[edit]

In 2010, overall profitability on bank assets in Venezuela fell to 9.7 percent from 20.5 percent in 2009. Venezuelan bankers were concerned that the Venezuelan Central Bank had not changed commission tariffs in over five years. Vargas served as the leader of the National Bank Board and led discussions with the Superintendencia de Bancos. Vargas proposed that the Central Bank create new requirements for giving loans to strategic sectors as opposed to the then-current law requiring compulsory loan portfolios.[8]

Relations with Bolivarian government[edit]

See also: Boliburguesía § Business executives

Mr. Vargas , a dapper, meticulous man, is thriving without even a nod to
Mr. Chavez's socialist nostrums.

— The Wall Street Journal [9]

Vargas and his bank were not successful before Chavez became president of Venezuela. He later helped the Chávez administration raise funds to finance Venezuela's budget. According to the United States Department of State, Vargas was "said to have made a profit off those negotiations" and was described as "a banker whose star has risen greatly during the Chávez presidency".[10] Vargas is alleged to have made background deals with the Chávez government,[11] those close to Vargas denied that he had received special treatment from Chávez.[11][12]

In 2008, Vargas' bank, Banco Occidental de Descuento (BOD), agreed to buy Banco de Venezuela from its then-owner, Spanish bank Banco Santander. Vargas and his bank officials met with the appropriate finance officials in the Venezuelan government, and the officials approved the purchase. Vargas's BOD then put a $700 million down payment toward the purchase. Soon after, President Hugo Chavez went on national TV and announced he was pushing BOD aside and buying the bank himself, on behalf of the Venezuelan government. BOD lost the $700 million deposit. Banco Santander refused to refund it. A Spanish court ordered the refund, but Spain's equivalent of the Supreme Court overturned that order.[13] Through it all, a 2008 Wall Street Journal article characterized Vargas and Venezuela's other wealthy elites as having "durability...no matter who is in power."[9] Vargas was later assisted by the Venezuelan government for abiding by their policies during the Venezuelan banking crisis of 2009–10, when more than a half-dozen competing private banking institutions were closed.[10]

Vargas's survival strategy, he says, is to remain "agnostic about politics": "A businessman has to deal with his government, no matter how far to the right or left it is".[1]

In May 2013, it was alleged that Vargas purchased Cadena Capriles,[14] with its criticism of the Venezuelan government declining afterward.[15]

BOD Financial Group[edit]

Vargas owns BOD Financial Group (Spanish: Grupo Financiero BOD), an umbrella company that owns Vargas's businesses. BOD Financial owns companies in three major market sectors: banking, capital markets, and insurance.[16]

Philanthropy and civic activities[edit]

In 2011, Vargas launched the Entrepreneur Program, a non-profit organization that helps people start small businesses. The program targets entrepreneurs who are not able to get funding from traditional banking sources. In its first phase in July 2011, the program selected and trained 100 entrepreneurs.[17] The program provides funding for cultural and educational initiatives targeted at disadvantaged communities. Since 2002, the program has invested $20 million in these initiatives. For example, the program funded the National Youth Orchestra of Chacao, which is conducted by the famous maestro José Antonio Abreu.[18]

As head of the Banking Association of Venezuela, Vargas helped initiate an energy-saving programmed called “Efficient Consumption.” The program calls for companies to install renewable energy technologies at their headquarters buildings. Vargas called on private banks to take charge on spreading the word of the program.[19]

The Enclave Foundation runs a free "Music for All" program that teaches music to over 6,000 public school children. Music for All has run for over 20 years. Children in grades kindergarten through grade school can participate.[20][21][22][23]

Help the Lake" provides resources to study and protect Lake Maracaibo.[20][21][22][23]

Awards[edit]

On June 23, 2015, Vargas was named "Latin America Entrepreneur of the Year" by business magazine The Executive. Concepción Dancausa, one of Spain's delegates to the European Union’s Committee of the Regions, personally gave the award to Vargas at a ceremony in Marid. According to Latin Business Daily, Vargas received the award "for his leadership role in driving economic growth, job creation, and expansion of wealth in Latin America."[24]

Polo[edit]

Vargas co-owns and plays left bench for Lechuza Caracas, a polo club and team.[25][26][27]

On September 1, 2015, Vargas told The Telegraph that he was planning to start a league in the Dominican Republic. Recently, Vargas had moved the headquarters of his club from England to Spain. When asked why, he explained the decision was simple: the rain. "We've played for five weeks here in Spain and had no rain."[28]

On June 21, 2009, twenty-one of his horses died suddenly during a polo tournament in Palm Beach, Florida.[29] The Lechuza Argentine captain, Juan Martín Nero believed the cause to be tainted Biodyl, a vitamin supplement given to horses to ward off exhaustion, as five of the horses that did not receive it were unaffected.[30] Lechuza was runner-up in the 2009 CV Whitney Cup and won the Cup in 2011.[31]

Personal life[edit]

He was married to Carmen Leonor Santaella Tellería,[32] with whom he had two daughters and one son:

They divorced in 2002. Vargas remarried to María Beatriz Hernández later that year.[39] They have two children:

  • Víctor Simón Vargas (born 2012)
  • María Guadalupe Vargas (born 2015). She was born prematurely in a Florida hospital and placed under observation, but was later released.[37]

He owns two houses.[1] One of his houses is in Caracas; another one is in La Guaira.[1] In 2009, he purchased George Lindemann's mansion in Palm Beach, Florida for US$5.7 million.[40] He also owns a plane and a 40' sailboat named "El Gran Guizo".[1] He flies his own Cessna Citation 500.[1]

References[edit]

  1. ^ a b c d e f g h i j k l m n o p John Lyons, Polo-Loving Banker Lives Really Large In Chávez Socialism: Venezuela's Mr. Vargas Has Yachts, and Good Timing; 'I've Been Rich All My Life', The Wall Street Journal, January 29, 2008
  2. ^ "Víctor Vargas Recibe Premio "Empresario Latinoamericano De Referencia"". Banca & Negocios. 25 June 2015. Retrieved 29 June 2015.
  3. ^ Tim Padgett, The Dead Polo Ponies and Their Millionaire Owner, Time, April 23, 2009
  4. ^ El banco venezolano B.O.D.sube 24 puestos en el prestigioso ranking "Los 250 mayores bancos de América Latina", El Economista, April 20, 2015
  5. ^ Alexandra Zendrian, Banking From A Venezuelan Perspective, Forbes, August 30, 2010
  6. ^ "BOD lanzó tarjeta de crédito para pymes". El Nacional (in Spanish). Venezuela: NoticiasFinancieras/Grupo de Diarios America. 26 November 2014 – via Nexis.
  7. ^ "Festejo". El Nacional (in Spanish). Venezuela: NoticiasFinancieras/Grupo de Diarios America. 19 May 2013 – via Nexis.
  8. ^ "Venezuela: Mass fall in profitability on assets in first two months of 2010". El Universal. Venezuela: Esmerk Oy. 25 March 2010 – via Nexis.
  9. ^ a b Lyons, John (29 January 2008). "Polo-Loving Banker Lives Really Large In Chávez Socialism". Wall Street Journal. Caracas, Venezuela. Retrieved 29 September 2015.
  10. ^ a b Reyes, Gerardo; Ocando, Cato (4 August 2013). "Boliburgueses y el encanto del Imperio". Univision. Retrieved 15 April 2015.
  11. ^ a b Padgett, Tim (23 April 2009). "The Dead Polo Ponies and Their Millionaire Owner". Time. Retrieved 3 May 2017.
  12. ^ "Venezuela Sees Chavez Friends Rich After His Death Amid Poverty". Bloomberg. 11 August 2014. Retrieved 29 September 2015.
  13. ^ "The Demise of Venezuela's Banking System". The Bisignis Institute. Washington, D.C. Retrieved 24 June 2015.
  14. ^ "Venta de Cadena Capriles causa especulaciones en Venezuela". El Economista (in Spanish). 4 June 2015. Retrieved 3 May 2017.
  15. ^ Carrillo, Jessica. "This Newspaper's Headlines Have Become Too Much for Many Readers in Venezuela". Global Voices Online. Retrieved 18 January 2015.
  16. ^ "BOD Financial Group harnesses opportunities in Latin America". World Finance. London, U.K.: World News Media. 8 September 2015. Retrieved 15 September 2015.
  17. ^ "Entrepreneurship in Venezuela". CONAPRI. Retrieved 29 June 2015.
  18. ^ Víctor Vargas
  19. ^ "Gobierno negó que se impongan multas por consumo eléctrico". El Nacional (in Spanish). NoticiasFinancieras/Grupo de Diarios America. 29 June 2013 – via Nexis.
  20. ^ a b "BOD apoyó en 2014 a 3200 emprendedores venezolanos". Dinero.com. 11 March 2015. Retrieved 29 June 2015.
  21. ^ a b "Programa Talento Educativo BOD premia la excelencia académica". Informe21.com. 22 March 2015. Retrieved 29 June 2015.
  22. ^ a b "Fundación B.O.D. donó más de 445 mil bolívares al Hogar Clínica San Rafael en Maracaibo". Panorama.com.ve. 8 February 2015. Retrieved 29 June 2015.
  23. ^ a b "Fundación Enclave inició la Navidad con concierto en El Rosal". ElUniversal.com. 6 December 2014. Retrieved 29 June 2015.
  24. ^ "Venezuela's Victor Vargas Awarded Latin America Entrepreneur of the Year". Latin Business Daily. 3 August 2015. Retrieved 3 September 2015.
  25. ^ Good start for Lechuza in USPA Gold Cup, Polo Times, March 13, 2014
  26. ^ Ed Pilkington, The strange case of the dead polo horses, The Guardian, April 24, 2009
  27. ^ Andres Schipani, Polo players regroup in Venezuela after decline under Chávez, The Financial Times, June 13, 2014
  28. ^ Davis, Gareth (1 September 2015). "Sotogrande Polo 2015: Adolfo Cambiaso and Dubai thrill in European season finale against Lechuza Caracas". The Telegraph. Retrieved 29 September 2015.
  29. ^ Alejandra Ocampos, Exclusive interview with Victor Vargas, PQ International,
  30. ^ "The Dead Polo Ponies and Millionaire Owner". TIME. 23 April 2009. Retrieved 17 April 2015.
  31. ^ "Lechuza Caracas wins Whitney Cup". Palm Beach Post. 27 February 2011. Retrieved 29 April 2015.
  32. ^ a b Genealogy.com
  33. ^ Genealogy.com: Maria Victoria Vargas
  34. ^ Element Capital: Board of Directors
  35. ^ José de Córdoba, Judge Dismisses Racketeering Claims Against Venezuelan Businessmen: Ruling Allows Former U.S. Diplomat to Still Seek Damages for Alleged Defamation, The Wall Street Journal, August 19, 2014
  36. ^ Genealogy.com: Victor Jose Vargas
  37. ^ a b Jaime Lopez, Chávez anuncia la nacionalización de los activos del Banco Santander en Venezuela, El Mundo, August 1, 2008
  38. ^ Genealogy.com: Maria Margarita Vargas
  39. ^ Ludmila Vinogradoff, Victor Vargas asegura que no ha perdido su visado en EEUU, ABC (newspaper), April 10, 2015
  40. ^ Arlene Satchell, Trump mansion sells for $95 million, June 18, 2008

External links[edit]

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