Navigate this market better. Subscribe for FREE stock alerts and information.

Wednesday, March 2, 2011

Brazil's Caixa CEO may quit over bank buyout-report

The chief executive of Caixa Economica Federal, Brazil's largest mortgage lender, will likely step down because of her role in the purchase of a stake in troubled lender Banco PanAmericano (BPNM4.SA) last year, newspaper Folha de S. Paulo reported on Wednesday. Caixa CEO Maria Fernanda Ramos Coelho is "uncomfortable" after the deal, in which the bank paid 739 million reais ($445 million) for 49 percent of PanAmericano's voting shares, drew tough scrutiny from investors, Folha said, without saying how it obtained the information. Months after Caixa unveiled the purchase, PanAmericano had massive losses related to accounting fraud. Caixa has faced strong criticism from PanAmericano share and bondholders for failing to spot the irregularities before central bank auditors demanded an outright capitalization of the lender in November.

Source