The Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) scandal has impacted the shares of BTG Pactual. The current market value of the banking firm is $6.1 billion and the revenue on bonds that were due for maturity in 2020, also reached 12%. Reportedly, Andre Esteves who is the CEO of BTG Pactual and Senator Delcidio do Amaral were arrested for being part of the Petrobras $2billion scandal.
The current arrest followed a statement of former Petrobras head Nestor Cervero, who was arrested in January 2015. Esteves tried persuading Cervero to keep his name out of the case and this was found by the authorities and landed the former in trouble.
Dilma Rousseff is Former Chairperson of Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR)
Another major development in the case is the alleged involvement of Brazil’s President Dilma Rousseff as he was the chairperson of Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR) at the time of the scandal and this may tumble the government. Even as Rousseff’s government has contributed immensely to the economy of the country, the fresh claims can help opposition demand the president’s impeachment.
The involvement of Rousseff is suspected because of his close association with the Senator. Even as billionaire Esteves has denied any involvement in a statement through his lawyer, the stakes are high on this one. BTG Pactual’s 23 million shares buyback plan has also been impacted by the arrest of its CEO. Persio Arida, a board member has been made the interim CEO of the company and buyback of the shares in next 18 months was submitted in a regulatory filing.
Economy to Tumble?
The country’s economy to stands to be impacted by the oil scandal as major stocks and currency that have just stabilized will again tumble. The market has seen its worst dip since 2012 and the fears of recession are looming on the country owning to the political imbalance that may occur if the president’s involvement in the scandal is confirmed.
Due to the worst scandal of the decade, the country’s political and economic stability has been put in danger and the opposition attack may incur a huge blow on the country, according to market analysts. It remains to be seen how the oil company scandal will turn out in coming months.
This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.