Luiz Carlos Trabuco will move to chairman of Bradesco, choose successor

Few people in the history of Bradesco, the largest bank in Brazil, have had as crucial an impact and enjoyed as much personal success from it as Luiz Carlos Trabuco. The 67 year old CEO of the firm has been with the company for nearly 50 years. As he moves to the position of chairman of the board, vacating the CEO job that he currently holds, he will continue to be a driving force behind the broad strategic decisions taken at the bank and the tactics with which they are implemented. If the past is any guide, keeping Trabuco on board is one of the best decisions the bank could have possibly made.

Trabuco has proven to be a formidable leader

Despite having a rocky ride as CEO, at least for the first six years of his reign, Trabuco was able to completely vindicate himself with the historic purchase of HSBC Brazil for $5.2 billion cash in 2015. The acquisition was hailed by Isto E Dinheiro as one of the most daring and well-executed purchases in the history of Brazilian business. The deal took the ailing Bradesco from a distant second-place in the Brazilian banking markets to a solid number one, immediately turning the tables on archrival Itau Unibanco and giving Bradesco the firm upper hand.

Now, two years after the historic purchase, Bradesco’s stock price, which had sunk as low as just 20 percent of its all-time high values, is now trading at record levels. But the ability of Trabuco to snatch victory for his firm and its more than 100,000 from the jaws of defeat is far from the first time that his strong leadership and vision has led to successes for his company.

Coming up through the ranks

Trabuco first went to work at Bradesco at the age of just 18. The year was 1969 and the young Trabuco had just graduated from high school. He had dreams of attending college but, being from a relatively poor household, was forced to go to work in order to put himself through the university.

He noticed a help wanted sign in a local bank branch and walked in to apply. After a brief interview, he was hired on as a bank teller, the lowest job at the firm. Over the next year, he proved himself to be a reliable and capable employee. He was quickly promoted to shift manager then branch manager.

Throughout the 1970s, Trabuco slowly rose through the ranks, eventually ending up as a regional manager for a quickly expanding Bradesco. During this time, he was able to put himself through night school, even as he worked up to 60 hours per week at the bank. By the end of the 1970s, Trabuco had achieved a bachelor’s degree in business administration as well as a master’s degree in social psychology.

By 1984, he was among the most well-credentialed and qualified employees of the firm. It was then that he was first tapped for an executive role. Over the next 20 years, Trabuco would head up a total of three departments with the bank, each time making major contributions to the bottom lines of the business units of which he was in charge. By the late 2000s, Trabuco had been responsible for increasing the bank’s profits by billions of dollars. In 2009, he was appointed by outgoing CEO Mario Cypriano to take the place of CEO.

Over his long and successful career, Trabuco has made an indelible imprint on the way that the bank does business and the overall corporate philosophy. As he assumes the role of chairman, it can be expected that his knack for creating value will continue. For more information visit:http://insiders.morningstar.com/trading/executive-profile.action?PersonId=PS00003Y11&flag=Executive&t=XNYS:BBD&region=usa&culture=en-US&cur=

 

Luiz Carlos Trabuco Cappi Brings Knowledge And Expertise To Bradesco As Their CEO

Luiz Carlos Trabuco Cappi is the well-known Brazilian financial figure who heads the bank of Bradesco as their CEO and whose influence is felt throughout the economic life of the country. He has spent four decades with the company and has served in various executive postings which have given him a tremendous range of experience and a deep knowledge of the business culture of Bradesco. He was appointed as their leading officer in 2009 after a wonderfully successful stint as their top manager in Insurance when the performance gains were outsized in their nature.

Trabuco, as he is best known, arrived at Bradesco in 1969 in his hometown of Marília where he started as a clerk. For two years he served on the front lines of the business and got a strong taste of what it’s like serving at a local bank branch. This experience would come in handy in later years when his responsibilities were greater and a keen understanding of the core business was necessary.

The company headquarters in São Paulo was his next stop and his career as a banker was punctuated by continual growth and development of his financial skills and expertise. He managed in several key areas of the bank such as Pensions, Marketing, and Insurance to gain a wide range of experience in primary banking functions.

The CEO position of a financial heavyweight like Bradesco carries with it a weight of responsibility in the light of media exposure and the influential nature of the job. Newspaper and magazine reporters are eager to carry quotes from Luiz Carlos Trabuco Cappi and top business and political leaders find great value as well in his thoughts on weighty economic matters. Trabuco, for his part, fills the role admirably and has demonstrated a modern sensibility regarding interactions with the media and its importance.

One innovation that Trabuco has put forth was the implementation of a corporate university to develop Bradesco’s leadership. This is in line with their tradition of continuity and renewal which helps them develop talented executives like him from within the company itself. Those employees that show great potential for higher leadership are given an opportunity to be promoted and have a greater role in the company.

Luiz Carlos Trabuco Cappi rose to prominence within Bradesco as a result of his excellent performance while managing their Insurance division from 2003-2009. The profits increased considerably during this time. He was an ardent proponent of insurance and considered it to be an extension of the state which promotes the social welfare. Twice he was named as the Insurance Personality of the Year and on the back of this strong performance, he became the front-runner for the job of the CEO which he attained in 2009.

Organic growth under Trabuco’s leadership has been the driving force of the business and a large part of their success. However, he is not averse to acquisitions if they make sense and in 2015 a blockbuster deal was engineered by him when Bradesco acquired the Brazilian branch of HSBC. It was a stunning deal that received great coverage in the financial media and it landed Trabuco a prestigious award. He was declared to be the Entrepreneur of the Year in Finance by Istoe Money. With one bold stroke, Bradesco acquired the equivalent of six years of organic growth.

Luiz Carlos Trabuco Cappi is married and the father of three children. His personality is of the reserved type and he forgoes ostentatious displays of wealth and is conservative in his dress as well. He is the fourth CEO in the entire history of Bradesco and is a great example of their continuity and renewal programs to develop company leadership.

Read more on Bloomberg.com

Kyle Bass Gives Current Economic Opinions

Recently Business Insider published an interview with Kyle Bass, who runs a hedge fund called Hayman Capital Management out of Dallas Texas.

Bass has frequently been an expert on business, trading and economic news and commentary shows ever since 2008. Alerted to the poor and declining quality of mortgages in the United States by another guest he met at a wedding in Spain, Bass was one of the few traders who saw the financial crisis coming. Therefore, he made a lot of money by finding ways to short the mortgage securities that were about to burn the entire world. He is still enjoying status as the hedge fund owner who made a large fortune while the rest of the world was engulfed in the Great Recession.

Never mind that his more recent predictions don’t seem to be working out so well. He had predicted a recession for Japan every year since 2010, and it hasn’t happened yet. Or that he defended the crony-socialism of Argentina’s former president Cristina Fernández de Kirchner and her irresponsible economic policies. Also, instead of finding opportunities to profit as he did in 2006, he has been manipulating the markets to make money. He does that by shorting the stock of pharmaceutical companies, and then files phony patent challenges to their drugs. When their stock price goes down, his short trades are profitable.

He now says there’s a 40-50 percent chance the United States will suffer a brief and minor recession in 2017. Bass alleges Trump could be right about that, but for the wrong reasons.  Although, if what UsefulStooges writes is to be believed, take Bass’ predictions with a grain of salt.

He says that negative interest rates make sense in an academic sense, but not in the real world. If the United States goes to negative interest rates, that would lead to a spike in the price of gold. Not wanting to pay banks just to hold their money, people would withdraw cash from banks and buy gold with it.

Asian countries have been building a credit bubble for the past 10 years, and something’s going to happen to it in the next two to three years.

For president of the United States, Bass thinks Hillary Clinton would be the most sane choice to benefit the equity markets, though he describes that as “crazy.”

He makes an interesting point about the Fed’s easy money policies since the financial crisis. The Fed’s policies have increased the prices of assets, and assets are mainly owned by wealthy people, so they are now wealthier than they were in 2006.  Read Kyle’s blog here.

The Investment Banking Risks Taken by Martin Lustgarten

Investment banking is one of the primary drivers of the United States and global economies. There are thousands of investment banks across the globe that assist governments, individuals and companies with raising financial capital or issuing securities. In many instances, investment banks are involved in mergers and acquisitions to offer ancillary services like equity securities, market making, derivative trading and fixed income instruments, currencies and commodities.

Investment Banking Lines of Business
There are two primary lines of business within investment banking: sell side and buy side. Sell side is comprised of trading securities for other securities or cash. The buy side encompasses advice to corporations, governments and individuals who purchase investment services such as mutual funds, private equity funds, hedge funds and unit trusts.
Investment banks are often also split into public and private functions with a wall separating the two business entities to prevent the crossing of information. The public areas manage stock analysis and public information. The private side manages private insider information that cannot be disclosed publicly. All investment banking advisors must be licensed broker-dealers and are subject to the Financial Industry Regulatory Authority (FINRA) and U.S. Securities and Exchange Commission (SEC) regulations.
Martin Lustgarten
Based out of Miami, Florida, Martin Lustgarten is a locally successful businessman who maintains dual-citizenship in Austria and Venezuela. Since 2007, Miami investigators had been keeping tabs on Lustgarten, slowly collecting evidence that he had been laundering multi-millions of dollars for drug traffickers and paramilitary groups in Colombia and Mexico. After eight years of tracking and gathering evidence, Lustgarten was arrested following a grand jury indictment. He was charged with conspiracy to commit money laundering, conspiracy to obstruct an official proceeding and obstruction of an official proceeding. This case exposed the drug money nexus between Venezuela and Miami that is rampant in South Florida.
However, nine months later, the case unraveled and prosecutors dismissed all charges against Martin Lustgarten. This turned out to be a striking setback for United States government efforts to reprimand those who profit from narcotics. Lustgarten operated companies in locations around the world, including Hong Kong, Singapore and Panama. These successful firms approved purchase-order financing and capital loans to Venezuelan firms involved in the international trade. The companies would exchange American currency on the black market for Venezuelan Bolivars at a much higher rate than normal. Through deals with these companies, Venezuelan importers would then have access to American currency to pay for consumer goods being imported into the country. Check out Marin Lustgarten’s Tumblr page for interesting photos and updates.