Banco de Talca: A Bank with a Complicated Past

Banco de Talca has a complex history that spans over a century, with roots dating back to 1880 when it was founded as a small savings bank.

The bank's early years were marked by significant growth, with a network of branches expanding across the region.

However, Banco de Talca's expansion was not without controversy, as it was involved in a series of scandals in the early 20th century.

One notable scandal was the collapse of a major real estate development project, which resulted in significant financial losses for the bank and its investors.

Banco de Talca was officially constituted on September 17, 1884 with a capital of 1 million pesos, contributed by 32 men and 9 women of renown in the province.

The bank's first board of directors was made up of seven men, including Jerónimo de la Cruz and José Manuel Fernández. The first branch of the bank opened in Cauquenes on October 27, 1885.

The bank issued its own money, which was made through the printing of 5, 10, 20, and 100 peso notes, featuring portraits of notable Chileans such as Benjamín Vicuña Mackenna and Tomás Marín de Poveda.

Banco de Talca was officially constituted on September 17, 1884, with a capital of 1 million pesos, contributed by 32 men and 9 women of renown in the province.

The first board of directors was made up of Jerónimo de la Cruz, Urcisino Opazo, José Manuel Fernández, Ruperto Echeverría, José Francisco Walton, Daniel Vergara, and Ángel María Garcés.

The bank's bylaws were approved by the Ministry of Finance on October 27, 1884, and it was declared legally installed on June 20, 1885.

Banco de Talca opened its doors on July 2, 1885, after starting operations on July 1 of the same year.

The first branch of the bank was opened in Cauquenes on October 27, 1885, and later branches were opened in Parral on September 1, 1888, and Linares on January 27, 1890.

The bank issued its own money, which was made through the printing of 5, 10, 20, and 100 peso notes, with the first issues including portraits of generals from the War of the Pacific.

The Banco de Talca has a long history of expansion, dating back to the early 20th century. In 1904, the bank opened its first branch in Quirihue, which unfortunately closed in 1912.

New branches were opened in San Carlos in 1906 and San Javier in 1926. The San Javier branch was closed in 1931 but reopened in 1943.

A major setback occurred in 1928 when an earthquake severely damaged the bank's building. The bank continued to operate from the side gardens of the Plaza de Armas while the management worked from the underground of the destroyed building.

Between 1929 and 1930, the bank's headquarters were rebuilt by the company Forteza Hermanos, designed by the brothers Carlos and Alberto Cruz Eyzaguirre.

A new era of expansion began after World War II, with the opening of a new branch in Talca in 1946, followed by branches in Molina in 1947 and Santiago in 1958.

The bank's presence in Santiago was a significant milestone, marking a major expansion into the capital city.

The Banco de Talca has a complex history of government involvement. In 1971, the bank was expropriated by the State through the Corporation for the Promotion of Production (CORFO).

CORFO acquired all the assets of the First National City Bank agency in Chile, including 8 branches in various cities. This marked a significant shift in the bank's ownership and control.

The military dictatorship initiated a process of reprivatization of banking in 1975, selling 89.5% of the capital of the Banco de Talca to 542 natural and legal persons of the Maule Region. This move aimed to return the bank to private hands.

The government's involvement in the bank's operations continued, with the creation of a Department of Foreign Trade in 1975 and an Agricultural Management in 1976. These departments were established to handle import and export procedures and provide credits for the agricultural sector.

The bank's expansion was also influenced by government policies, with the opening of new branches in cities such as Iquique, Arica, and Viña del Mar.

In 1971, the State expropriated the bank through the Corporation for the Promotion of Production (CORFO). This marked a significant shift in the bank's ownership.

The bank acquired all the assets of the First National City Bank agency in Chile, including six branches in Santiago and two in Valparaíso. This expansion was a key part of the bank's growth during this period.

A public tender in November 1975 led to the reprivatization of the bank, with 542 natural and legal persons from the Maule Region acquiring 89.5% of the capital. This marked a return to private ownership for the bank.

The bank's expansion continued, with the opening of new branches in Iquique, Arica, Curicó, Mercado-Centro in Talca, Viña del Mar, Antofagasta, Faro de Apoquindo, and Macul between 1976 and 1979.

The Ministry of Finance announced the intervention of the bank on October 30, 1981, becoming effective on November 2 of the same year.

Several banks and financial companies were also intervened, including Banco Linares, Banco de Fomento de Valparaíso, and Banco Español-Chile.

Among the bank's main debtors at the time of its intervention were some companies of the Calaf-Danioni group, such as Manufacturas Yarza SA and Agrícola y Forestal Los Quillayes.

The Bank of Talca was finally liquidated by the SBIF on April 15, 1982.

The bank was acquired by the Spanish bank Centrobanco, later called Central Hispano, for a total of 17 billion pesos at the time.

The bank also delivered part of the payment to the Central Bank of Chile for 115 paintings from its art gallery to settle a portion of its debts.

Miguel Calaf and Alberto Danioni were arrested on July 12, 1982, and declared inmates five days later.

Sebastián Piñera, Carlos Massad, and Emiliano Figueroa Sandoval were convicted on August 27, 1982, but their arrest warrants were later annulled by the Supreme Court.

The Cámara has been involved in the case of Banco de Talca, with a special session being requested. This session is reportedly backed by the Concertación.

The Concertación's support for the special session has been met with skepticism by some, with diputado Joaquín Godoy calling it "una cortina de humo" or a smokescreen.

Piñera, the diputado in question, had his abogado or lawyer attend the hearing in his place due to campaign activities in the VII Región.

The Banco de Talca's financial woes led to a thorough investigation, which revealed some disturbing facts. The bank's controladores, Miguel Calaf and Alberto Danioni, owned 65% of the bank and 80 related companies, many of which were heavily indebted.

The investigation uncovered a scheme to create shell companies to take on the bank's bad debts. This was allegedly suggested by Sebastián Piñera, the bank's manager at the time.

Eduardo Barbé, a person of confidence for Calaf, was tasked with coordinating the bank's dealings with these shell companies. He claimed that Piñera had instructed him to create four agricultural companies to transfer the bank's uncollectible debts to.

The bank's financial statements were allegedly prepared by Piñera himself, and he denied any involvement in their content. However, the investigation found that the creation of these shell companies was documented with Piñera's signature, along with that of Emiliano Figueroa, a manager recruited by Piñera.