Deals
Brazil Central Bank Said to Demand BTG Sell Assets, Cut Trading
- Regulators said to have worked closely on FGC negotiations
- Monetary authority said to view BTG steps so far as sufficient
Is Brazil on the Brink of a Depression?
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Brazil’s central bank is demanding Grupo BTG Pactual SA sell assets and reduce equity and derivatives trading to free up collateral as the bank struggles to shore up liquidity after the arrest of its founder last week, according to a person with direct knowledge of the matter.
The monetary authority has been working closely with Sao Paulo-based BTG in its change of management and control and approved the process, the person said, asking not to be identified because the discussions aren’t public. It also played an active role in obtaining a rescue line-of-credit from a privately backed deposit guarantee fund. No direct funds were provided by the central bank, the person said.