BTG Pactual is considering selling part of its commodities unit to raise capital following the arrest of their CEO and Chairman, Tatiana Bautzer, which we noted yesterday. The bank is now looking to shore up its balance sheet after the arrest prompted clients to pull over $1bn in investments held at the bank's asset management division; the success of the bank's recent venture into commodities makes the unit an obvious choice for partial disposal. However, the bank may encounter difficulty finding a buyer among other banks, which have been reducing their exposure to risk due to tighter regulations.
BTG Pactual is considering selling part of its commodities unit to raise capital following the arrest of their CEO and Chairman, Andre Esteves, which we noted yesterday. The bank is now looking to shore up its balance sheet after the arrest prompted clients to pull over $1bn in investments held at the bank's asset management division; the success of the bank's recent venture into commodities makes the unit an obvious choice for partial disposal. However, the bank may encounter difficulty finding a buyer among other banks, which have been reducing their exposure to risk due to tighter regulations.