Decision time for Brazil's top bankers
Even the Brazilian press is critical of Garantia because of its secretiveness and past refusals to talk to journalists. Lemann is especially reclusive and, true to form, refused to be interviewed for this article, as did chief executive Claudio Haddad. Seizing their opportunity to retaliate, many Brazilian newspapers have devoted considerable time and energy to coverage of Garantia's troubles. Keeping up the heat the business magazine Exame published in April a three-page story headlined: "He can't bear to hear about Garantia. The problems of Raul Boesel [a Brazilian Formula Indy racing driver] symbolize the hard times at Jorge Paulo Lemann's bank." In the article, Boesel, a popular figure in Brazil, says he lost half of the $3 million he invested in the bank's investment funds and that the risks were not fully explained to him. Garantia counters that Boesel was kept informed of how his money was being invested.
Garantia partner Carlos Castanho, who is responsible for private banking, offers a justification for the bank's approach. "As we were viewed as an aggressive institution we also attracted aggressive and sophisticated investors," he says.