Bank Gone Wild in Brazil Distorts Market: Alexandre Marinis

President Luiz Inacio Lula da Silva has transformed Brazil’s state development bank into a key engine of economic growth since his re-election in 2006. Yet Lula’s policy of pushing the bank’s involvement into so many areas of Brazilian life now threatens the momentum of the world’s eighth-largest economy.

The bank, known as BNDES, has tripled lending since 2006, to 150 billion reais ($85.5 billion) for the 12 months ended in May. That’s more than the World Bank’s budget.