Foreign investors and big hedge fund managers are always looking for assets that can increase their revenue flow. During the first decade of the 21st century, Brazil was the darling of the hedge fund world. The money didn’t stop coming until the economy fell apart. The money flow from foreign investors disappeared faster than a magician could pull a rabbit out of his hat in 2015, and the largest economy in Latin America went on life support.
China, Brazil’s best trading buddy, hit a snag in their manufacturing sector in 2014. In order to compensate for the slowdown, China put the brakes on Brazilian imports. China wasn’t the only reason Brazil’s economy went to hell, but it was the key reason, according to Brazilian economists.
Even though the country was experiencing one of the worse economic nightmares in its history, Brazilian banks were making money hand-over-fist. The banks were ready for the crippling recession. Most of the banks bought bonds, and they made sure they had insurance to protect their assets. The banks didn’t lend consumers money unless they were sure those consumers could pay it back. And if they lent money, the interest rate was higher than a Georgia pine tree. In spite of the recession, private banks like, Itaú, Bradesco, and the government-controlled banks didn’t lose much during those two years. In fact, Bradesco was able to acquire the Brazilian division of HSBC in 2015. That’s when the recession was turning the country into a poor credit rating nation.
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Bradesco was able to upgrade their internal computer systems and set up new data programs that gave the bank the information it needed to keep its focus on consumers. The bank’s Personas Program was the brainchild of the executive team. Luiz Carlos Trabuco was the leader of that team. Luiz Carlos Trabuco is the man who gave the bank the direction it needed to function during the nasty recession. His people skills and his ability to cut through the bank’s red tape are the reasons Bradesco was able to incorporate the HSBC locations into the Bradesco family so seamlessly.
It’s easy to identify one person for tipping the financial scales in the right direction, but Trabuco doesn’t take the credit for the bank’s success. He’s a team player, and he credits the bank’s more than 100,000 employees for putting the bank on the right course. Bradesco has more than 5,000 branches and thousands of service centers with modern ATMs.
Investment banks like Goldman Sachs know how important good management is in the banking industry. Wall Street is singing the praises of sixty-six-year-old Trabuco and his executive team. Bradesco’s rating went from a “maybe” to “buy” status recently. The bank’s stockholders are enjoying the fruit of a very good year, thanks to the internal strategy that Mr. Trabuco and the team put in place.
Understanding how Luiz Carlos Trabuco does what he does in the banking industry is easy. Luiz is a knowledgeable banking veteran with a philosophy degree from the University of Sao Paulo. Bradesco is Trabuco’s first and only employer. He left school and got a job with the bank in 1969. Mr. Trabuco is the fourth CEO in the bank’s history, and he is the most well-known, not for his ability to crunch numbers, but for his ability to interact with people. Mr. Trabuco has the ability to give people what they want without losing money. His list of accomplishments is long, and the rewards for those accomplishments fill his Sao Paulo office. He may be reaching the end of his banking career in terms of age, but in terms of energy and the ability to get things done, he is still as strong as ever.
Find more about Luiz Carlos Trabuco: http://www1.folha.uol.com.br/mercado/2016/09/1810520-bradesco-quer-manter-trabuco-na-presidencia-por-mais-dois-anos.shtml