Warren Demands Big Banks Detail Role in Trump‑Run Venezuela Oil Sales
Sen. Elizabeth Warren and several Senate Democrats have launched a formal probe into how major U.S. banks are helping the Trump administration sell up to 50 million barrels of Venezuelan oil that Caracas’ interim authorities agreed to hand over to Washington. Their letters follow Trump’s Jan. 3 announcement that the oil would be sold "immediately," a Jan. 7 Energy Department statement that 'key banks' must execute and finance the deals with proceeds held in 'U.S.-controlled accounts at globally recognized banks,' and a Jan. 9 executive order declaring a national emergency to shield Venezuelan oil revenue in U.S. Treasury accounts from attachment or lawsuits. The lawmakers say it now "appears" at least some oil proceeds will be held by the Treasury despite being sovereign Venezuelan property and warn that the administration has provided no clarity about which institutions are involved or how funds will be managed, raising red flags about transparency, legality and potential profiteering. They are demanding Bank of America, Goldman Sachs, UBS and other giants disclose any contacts with the Trump team over Venezuelan oil or related military operations, whether they are holding or plan to hold Venezuelan oil proceeds, and all related communications, with initial answers due by the end of January and monthly updates thereafter. The letters put Wall Street squarely in the crosshairs of growing political and legal scrutiny over the U.S. decision to "run" Venezuela’s oil sales after a U.S. raid removed Nicolás Maduro, and they foreshadow a battle over whether those flows serve Venezuelans, fund U.S. objectives, or quietly enrich intermediaries.
📌 Key Facts
- Trump announced that an interim Venezuelan government would transfer up to 50 million barrels of oil to the U.S. for immediate sale, with Trump saying he would control the sale proceeds.
- On Jan. 7, the Department of Energy said those sales would require 'key banks' to execute and finance them and that proceeds would be held in 'U.S.-controlled accounts at globally recognized banks.'
- On Jan. 9, Trump signed an executive order declaring a national emergency to protect Venezuelan oil revenue held in U.S. Treasury accounts from attachment or judicial process.
- Warren’s letters to banks including Bank of America, Goldman Sachs and UBS ask whether they have been contacted or engaged by the Trump administration regarding Venezuelan oil sales or proceeds, what support they have agreed to provide, and whether they hold or plan to hold Venezuelan oil proceeds.
- The senators set a deadline at the end of January for initial responses and request ongoing monthly updates on the banks’ communications with administration officials about Venezuelan oil and military operations.
📊 Relevant Data
U.S. sanctions on Venezuela have contributed to a loss of oil revenue equivalent to 213% of its GDP between 2019 and 2023, exacerbating the economic crisis.
They Are Making Venezuela's Economy Scream: The Eighteenth Newsletter (2025) — Tricontinental: Institute for Social Research
Since 2015, approximately 8 million Venezuelans, representing about 27% of the country's 30 million population, have emigrated due to the economic crisis, with major causes including hyperinflation, food shortages, and low wages.
Decade of Distress Clouds Venezuela's Future — Gallup News
Over 20 million Venezuelans out of a population of 28.8 million live in multidimensional poverty due to economic precarity and poor public services as of 2025.
World Report 2025: Venezuela — Human Rights Watch
The Venezuelan immigrant population in the United States grew by 318% from 2010 to 2023, reaching approximately 845,000, driven by Venezuela's economic and political crisis.
Venezuelan Immigrants in the United States — Migration Policy Institute
U.S.-EU sanctions increase emigration from target countries by 22 to 24 percent on average, as found in a 2024 study examining the impact on migration flows.
Economic Sanctions: A Root Cause of Migration — Center for Economic and Policy Research
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