Brazil's Authorities in a Pickle as BTG Spillover Fear Spreads
- Crisis in investment bank comes as Brazil faces deep recession
- Central Bank says it is monitoring situation with BTG
BTG Pactual SA’s Partners Take Control of the Bank
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A week after the arrest of Brazil’s billionaire Andre Esteves, the lack of guidance from Brazilian authorities on the future of his troubled investment bank BTG is exacerbating investors’ nervousness.
Since Esteves was detained on Nov. 25 the only official statement from the central bank the same day was that it is monitoring the situation and that the bank showed solid financial indicators and continued operating normally. President Dilma Rousseff on Monday said from Paris that while she expected some economic impact from the arrest, neither she nor anybody else "had the slightest idea" of its broader implications.