Banorte or Banco Mercantil del Norte is a major bank in Mexico, based in Monterrey. For other uses, see Bank (disambiguation). ... Monterrey IPA: (Spanish:  ) is the capital city of the northeastern Mexican state of Nuevo León and a municipality of the same name. ...

Company History

Banco Mercantil del Norte, S.A. (known by its acronym Banorte), is the primary subsidiary of Grupo Financiero Banorte, one of Mexico´s largest and oldest financial institutions, which has been present in Mexico since 1899. The Banorte trademark is a well-known mark in Mexico. The web domain name "banorte.com" was created on October 13, 1998. 1899 (MDCCCXCIX) was a common year starting on Sunday (see link for calendar). ...

It is a Forbes Global 2000 company, with more than 30 billion dollars in assets under management, 12,500 employees, and 950 branches. Currently, it is the only major bank in Mexico not owned by any foreign group. Banorte, with total consolidated assets of approximately $15.1 billion, is the fifth largest bank in Mexico.

It was established in 1889 as Banco Mercantil de Monterrey and in 1985 merged with Banco Regional del Norte to form Banco Mercantil del Norte (Banorte). In late 2001, Banorte acquired Bancrecer in US$125 millions. Bancrecer had been taken over in 1999 by IPAB. Bancrecer had itself taken over another bank, Banoro, in 1997. 1889 (MDCCCLXXXIX) was a common year starting on Tuesday (see link for calendar). ... 1985 (MCMLXXXV) was a common year starting on Tuesday of the Gregorian calendar. ... This article is about the year 2001. ... 1999 (MCMXCIX) was a common year starting on Friday, and was designated the International Year of Older Persons by the United Nations. ... 1997 (MCMXCVII) was a common year starting on Wednesday of the Gregorian calendar. ...

In 1992 it was purchased from the Mexican Government by a group of investors headed by the Mexican entrepreneur Roberto Gonzalez Barrera. Banorte expanded their business to leasing services (Arrendadora Banorte) in 1990, to factoring and warehousing services (Almacenadora Banorte and Factor Banorte) in 1991. In 1997, Banorte stablished an alliance with the italian group Generalli, a main European insurance company, to offer insurances, pension funds and Afore's services thru their subsidiaries Afore Banorte-Generalli, Seguros Banorte-Generalli and Pensiones Banorte-Generalli. Also, Banorte has operations in New York (Banorte Securities) and Grand Cayman (Banorte Grand Cayman Branch). 1992 (MCMXCII) was a leap year starting on Wednesday. ... This article is about the year. ... 1991 (MCMXCI) was a common year starting on Tuesday of the Gregorian calendar. ... 1997 (MCMXCVII) was a common year starting on Wednesday of the Gregorian calendar. ... NY redirects here. ... Grand Cayman from space, April 1994 Grand Cayman is the largest of the three Cayman Islands at about 196 km² and contains the capital George Town. ...

In less than 10 years Banorte has transforms itself from a regional bank, based mainly in the northern Mexico, to become one with nation-wide coverage. To achive that Banorte, with a huge investment, bought four mexican banks (among them Banco del Centro, and Bancrecer). In order to set up a financial group with full services Banorte wanted a securities company under his control. Banorte made an agreement to merge Casa de Bolsa Afin in July 1993.

Key numbers for fiscal year ending December, 2004: Sales: USD $2.5 billions One year growth: (3.6%) Net income: USD $165.6M Income growth: (16.1%)

Money Laundry Involvement in US Operation Casablanca

Operation Casablanca was a three-year U.S. undercover investigation, where Americans investigated major Mexican banking institutions for laundering illicit drug profits. Mexican authorities were not informed about the investigation.

This operations led U.S. Customs agents to arrest 22 high-ranking and mid-level bankers from 12 of Mexico's largest banks when they traveled to the U.S. in mid-May while they thought there went to a banking conference. The investigation produced 160 indictments, including 3 Mexican banks and 26 Mexican bankers. The US Justice Department intended to prosecute the banks under US law, with maximum penalties, seizures, and revocation to operate in the United States.

Banorte was among the banks and bankers which were busted in money laundry according to the Operation Casablanca. From June to July 1998 issue of Money Laundering Alert, Banorte was suspected to have forfeited $7,323,103.51 US dollars, so Banorte faced civil penalty lawsuit under Title 18, USC Sec. 1956(b) and civil forfeiture action under Title 18, USC Secs. 981 & 984.

On July 1, 1999, a U.S. federal judge in Los Angeles dismissed with "extreme prejudice" a $7.3 million forfeiture case against Banorte. No criminal charges were filed and U.S. authorities gave them back $1.4 million seized in the operation.

As result to its involvement with money laundry, Banorte implement anti-money laundering policies and procedures. These polices and practices enabled Banorte to defend money laundering charges, and regain $1.4 million that had been seized by the U.S. government during the operation.

Banorte entering to the US banking market

In 2006, Banorte, the fourth-largest bank in Mexico and the only Mexican-owned bank, announced the acquisition for $259 million of 70% of the stock of INB Financial Corp, the Inter National Bank's parent company. The transaction is expected to be completed by the end of 2006. Banorte will have the option to acquire the remaining 30% for $370 million.

Inter National was founded in 1983 in McAllen. INB holds $940 million in deposits and employs 278 people at 16 branches in McAllen, Edinburg, Mission, Weslaco and El Paso

Until now, Inter National Bank will continue to operate in the US, and no significant strategic changes are anticipated.

Executive Board

Designed on the General Ordinary Stockholders' Meeting of April 28, 2005

Roberto González Barrera (major stockholder) Chairman

Rodolfo Barrera Villarreal Vice President

Bertha González Moreno Patrimonial

José G. Garza Montemayor Patrimonial

David Villarreal Montemayor Patrimonial

Magdalena García de Martínez Chavarría Patrimonial

Francisco Alcalá de León Independent

Eduardo Livas Cantú Independent Adviser

Eugenio Clariond Reyes-Retana Independent

Herminio Blanco Mendoza Independent

Ricardo Martín Bringas Independent

Antonio Chedraui Obeso Independent

Jacobo Zaidenweber Cvilich Independent

Javier Vélez Bautista Independent Adviser

Luis Peña Kegel CEO of Grupo Financiero Banorte, S.A. de C.V.

Refrences

Banorte http://www.banorte.com

INB Bank http://www.inbweb.com

Banorte Securities International Ltd. http://www.banortesecurities.com

Grupo Financiero Banorte and Banorte USA http://federalreserve.gov/boarddocs/press/orders/.../200610132/attachment.pdf

Narco News, "Operation Casablanca". http://www.narconews.com/casablanca1.html

Drug Trafficking in Mexico: A First General Assessment. http://www.unesco.org/most/astorga.htm

Mexican bank, Banorte, challenges U.S. and prevails in Casablanca http://www.moneylaundering.com/ArticleDisplay.aspx?ID=961

Kroll's Notable Cases. http://www.kroll.com/about/history/notable/

Mexico bank gets back funds seezed in U.S. sting http://www.powmadeak47.com/mex/mex99dwbanks.html

http://cupcake.freeshell.org/profile2006/hh3newsprt.cgi?hh3news/web-060329-citibank-confia-acqusition.html

http://www.wipo.int/amc/en/domains/decisions/html/2000/d2000-1215.html

Adrian E. Tschoegl. "Foreign ownership in Mexican Banking: A Self- Correcting Phenomenon". The Wharton School of the University of Pennsylvania, Philadelphia, PA 19104, 23 October 2006.

TAEKO HOSHINO. PRIVATIZATION OF MEXICO’S PUBLIC ENTERPRISES AND THE RESTRUCTURING OF THE PRIVATE SECTOR. The Developing Economies, XXXIV-1 (March 1996) http://www.ide.go.jp/English/Publish/De/pdf/96_01_02.pdf

www.freerepublic.com/focus/f-news/1567731/posts