The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Why GIC and Temasek bought into BTG Pactual! | Deal insight

Let’s face it. For all the discussions about BRIC exploding into the Top 10 economies ahead of US and Western Europe, Brazil has been troubled for 2 out of 4 comeback years for Emerging BRIC economies, Russia probably 3 and India and China head for grim climes in 2012 after a downtrending 2011. Also investment risch survivors of the 2008 bank crisis had access to Bangladesh, Vietnam, Mongolia, Turkey, indonesia and Mexico to name but a few of the Next 11 Emerging Economies growing at just less than a double digit clip in GDP terms and more pliable to a $2-5 bln round of investment by Wovereign Funds, Investment Banks or other Professional Fund managers across multiple asset classes including the favored Forex trade that is no longer so clear for any of the Emerging BRIC countries

Though Singapore funds, GIC and Temasek maintained investments in Chinese banks yet tentatively, they have been extra vigilant about getting rid of their bank investments while in profit. The UBS opportunity for GIC was also aon the razor sharp line between sense and proifits on one side and continuing the crisis on the other.

However, the Brazilian investment Bank has been establishing its profit record in the same climes in Brazil and Latam is no small destination for Global investment Banks ring fenced in their own countries whether headquartered in New York or London and there is somehow a limitation of organic and inorganic expansion for the Global Banks into LAtam similar to European Banks entering the US or London/ South Africa based groups like Skandia trying to survive even in the post crisis world. Sanntander’s gains have also been limited by its geography and parentage.

Enhanced by Zemanta


This entry was posted on March 8, 2012 by in Financial Markets and tagged , , , , , , , .


%d bloggers like this: