BTG Pactual SA’s Swiss private bank BSI hired Irish central bank deputy governor Stefan Gerlach as chief economist.
Gerlach, a dual Swedish-Swiss citizen, will become BSI chief economist in January, reporting to the bank’s incoming chief investment officer, Yves Bonzon, he said in an interview. Gerlach said he’s unaware of BTG seeking to sell the Swiss unit as first reported by Bloomberg News on Dec. 3.
BTG is grappling with the fallout from last month’s arrest of then-chairman and chief executive officer, Andre Esteves, amid a corruption probe in Brazil. BTG has put BSI and other assets up for sale to try to shore up its finances, according to people with knowledge of the matter. BTG bought Lugano-based BSI in September for 1.25 billion Swiss francs ($1.3 billion).
Esteves was taken into custody on suspicion of trying obstruct a nationwide corruption probe involving Brazil’s state-owned oil company. He’s denied the allegations through his attorney.
Gerlach, who joined Ireland’s central bank as one of two deputy governors four years ago, said in September he would leave by end of the year to return to Switzerland. He previously worked at the Bank for International Settlements and as chief economist with the Hong Kong Monetary Authority.