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"We’re not Brazil-centric. We continue to be focused on every market. Colombia and Peru, for example, are smaller economies but are very profitable" |
What is also becoming evident is the growing power of the local banks, especially in Brazil. The biggest move last month was the news that Andre Esteves had quit as global head of fixed income, currencies and commodities at UBS. Esteves, who arrived at the firm in December 2006 following its acquisition of Brazil’s Banco Pactual, will now focus all his energy on running both the group’s and the investment bank’s Latin American franchise.
UBS will hope that Esteves’s move back to São Paulo from London will quell talk of a potential split between Pactual and the Swiss bank. Rumours have grown louder in recent months that Pactual’s bankers are becoming increasingly disillusioned with the union, especially as their business is performing strongly, in stark contrast to the turmoil engulfing the rest of the investment bank.
In March, UBS lost seven of its bankers in Brazil to Merrill Lynch, including Alexandre Bettamio, co-head of investment banking.