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(Revised from original 2002 version)
Argentina's Financial System: The Case of Banco de Galicia
Describes the development of Argentina's financial system after the "Tequila Crisis" that came about as a result of the speculative attack on the Mexican peso's peg to the U.S. dollar in December 1994. Although Argentina's banking system was strengthened overall due to changes implemented to address the crisis, most of the country's domestic private banks were either taken over by foreign banks or failed. Focuses on how in the year 2000, in an effort to remain Argentine owned, the last remaining large domestic private bank adopts a share offer considered by some--particularly a vocal member of one of the bank's controlling families--to be unfair to minority shareholders.
Banks and Banking;