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Petrobras Link to Sete Could Cause BTG, Santander Losses

A demonstrator holds a flag during a protest against oilfield auctions outside the headquarters of Petroleo Brasileiro SA (Petrobras) in Rio de Janeiro, Brazil, on Oct. 17, 2013.

A demonstrator holds a flag during a protest against oilfield auctions outside the headquarters of Petroleo Brasileiro SA (Petrobras) in Rio de Janeiro, Brazil, on Oct. 17, 2013.

Photographer: Dado Galdieri/Bloomberg
Updated on

A Brazilian executive’s guilty plea on graft charges drew little global attention last week amid the wider corruption scandal at Petroleo Brasileiro SA. It didn’t escape the notice of the nation’s top banks.

Executives from banks including Grupo BTG Pactual and Banco Santander Brasil SA, as well as major pension funds, are holding daily phone conferences to assess any potential damage from the scandal after the former operating chief at rig supplier Sete Brasil Participacoes SA admitted to corruption and implicated his ex-employer and Petrobras, said a person with knowledge of the situation. BTG and Santander Brasil are among shareholders in Sete Brasil.