BTG Pactual May Sell BSI To Raise Cash Amid Brazil Scandal - Media

Tom Burroughes

4 December 2015

Swiss private banking firm this year with the transaction ending as recently as September, might be put up for sale by its Brazilian parent as that firm has become engulfed in a national corruption scandal, media reports said.

BTG Pactual declined to comment to Family Wealth Report when asked about the matter today.

According to a report by Bloomberg, BTG Pactual is trying to raise cash following the arrest of its founder, Andre Esteves, last week (as reported here). BTG acquired the Lugano-headquartered private bank for SFr1.25 billion ($1.28 billion) in September.

Esteves resigned as BTG’s chief executive and chairman at the end of November after being arrested on suspicion of trying to thwart a corruption probe. He has denied any wrongdoing. BTG has since announced a raft of senior management changes.

This publication asked BSI earlier this week whether the drama will affect it and the bank stated it was a separate entity, and that there will be no impact.

Bloomberg said its unnamed source gave no details about the financial size of a potential sale.

BTG is divesting “non-essential” assets, BTG’s chairman Persio Arida reportedly said this week.