Rio de Janeiro-based brokerage Gestora de Recebiveis TettoHabitacao Ltda. sold overvalued government bonds to investorsincluding Banco Bradesco SA and Brazil’s post office employeepension fund Postalis, according to Folha, which said it had access to confidential lawsuitdocuments.
2. The victims: Multiplic’s fund manager (Antonio Jose Carneiro) had purchased these “lemon” bonds and threatened a lawsuit against Caixa Economica. Same thing with the postal workers’ pension fund Postalis.
3. Caixa Economica, a Brazil government-owned bank, is run by two political parties: PMDB and Lula’s PT. The challenge is to know who is the “dirtiest” among the two…
4. Caixa Economica has also been recently involved in another scandal related to Banco Panamericano’s fraud and bailout.
5. The FGTS workers fund might register a loss of R$100 million in this mess.
Anyway, as seen above, the Brazilian public banks are anything but professional. And just remember that many other companies (Petrobras? Vale?) are run by this same government… and unfortunately, the Brazilian tax-payer will take the hit, again.
Next on our list is Banco do Brasil…