Shadow of a Stout

Bradesco Undergoing Leadership Changes

Jan
12

Banco Bradesco SA is at the center of the Brazilian banking sector. It is not only the second largest private bank but also a market leader in various banking aspects. Bradesco pioneered the use of credit cards and internet banking in Brazil. Presently, the bank’s assets are estimated at $413 billion. While many factors have favored Bradesco’s steady expansion, the bank credits its forward-thinking leaders—chairpersons, presidents, etc.

Bradesco’s Leadership

The chairman of the board of directors and the bank’s president CEO are the notable faces of Bradesco. Although Bradesco is approaching its eight-decade in existence, the bank has had a handful of chairpersons and presidents. The serving chair, Luiz Carlos Trabuco, who also is the president of the bank, is the third chairman and fourth CEO of the bank. Amado Aguiar established Bradesco in 1943 and became its first chairman and CEO. He stepped down as CEO in 1981, and Lazaro de Mello Brandao occupied his place. Aguiar passed on ten years later. Once again, the bank appointed Brandao to preside over the board of directors.

Brandao took the leadership mantle at the time when Bradesco was experiencing exponential growth. After eight years doubling up as chairman and president, Brandao abdicated his duties as president; the third CEO, Marcio Cypriano, assumed office according to terra.com.br. Brandao and Cypriano joined forces to expand the bank’s presence in both Brazil and the whole of Latin America. It is during their tenure that Bradesco commenced operations in Buenos Aires, Argentina. In addition, Bradesco acquired ten smaller banks operating in Brazil. Among Bradesco’s acquisitions were the BBVA’s Brazilian subsidiary and American Express subsidiary.

Read more: Bradesco begins selection of new president


Other banks watched and learned as Brandao and Cypriano focused on inorganic growth strategies. In 2008, Itaú and Unibanco announced that they would merge to create Itaú Unibanco according to valor.com.br. The merger meant that Bradesco would no longer be the largest private bank in Brazil. Meanwhile, Cypriano’s tenure in office had elapsed. He resigned, and Luiz Carlos Trabuco took his place in 2009. Brandao remained the chair of the board.

Brandao was unhappy with Itaú Unibanco overtaking Bradesco. He was willing to fire every bullet in his arsenal for Bradesco to regain market leadership. Although Luiz Carlos Trabuco was equally distressed by the occurrence, he convinced the board that quality service delivery is a better measure of an institution’s performance than market leadership. Luiz Carlos Trabuco went on to establish Unibrad Corporate University to train Bradesco’s staff, including management, on aspects of quality service delivery.

However, Luiz Carlos Trabuco was alive to the fact that the only strategy for Bradesco to overtake Itaú Unibanco was through a merger or an acquisition. In 2015, an opportunity for an acquisition arose, and Luiz Carlos Trabuco seized it. He convinced Bradesco to acquire the Brazilian branch of HSBC for $5.2 billion. The board, led by Brandao, approved the purchase that put Bradesco ahead of Itaú Unibanco in three banking related aspect: branch network, number of account holders and total investment funds.

This year will Luiz Carlos Trabuco ninth year as president of the Osasco based bank. Although many wish that he continue as president of the bank, Bradesco’s bylaws prohibit him. Luckily, with the resignation of Lazaro de Mello Brandao on October 11, 2017, a vacancy arose in the board of directors, and the bank appointed Luiz Carlos Trabuco to fill the space left by Brandao.

Starting March, Bradesco will have a new president. Although the bank has not yet named Luiz Carlos Trabuco’s successor, some heads of departments and subsidiaries such as

• André Rodrigues Cano,
• Octavio de Lazari,
• Marcelo de Araujo Noronha,
• Josué Augusto Pancini,
• Domingos Figueiredo Abreu,
• Alexandre da Silva Gluher, and
• Mauricio Machado de Minas
are seen as the frontrunners in the succession contest.

Search more about Luiz Carlos Tarbuco: http://www1.folha.uol.com.br/mercado/2017/10/1926243-proximo-presidente-do-bradesco-saira-da-diretoria-do-banco-diz-trabuco.shtml

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Equities First Holdings

Jan
01

Equities First Holdings is revolutionizing financing with its stock-based and margin loans. Even in the current unstable economic state of affairs where most financial institutions are more rigid on their qualifying procedures and implementing increased interest rates on loans, Equities First Holdings is offering an alternative for borrowers. This type of loan is especially a financing option for borrowers who struggle to gain the financing through the typical loan qualifying process using credit checks. Stock-based and margin loans are also a solution for those requiring the funds immediately.

EFH was founded by Al Christy, Jr. He determined that using stocks as collateral provided borrowers with a working capital quickly, efficiently, and with reasonable risk. These types of loans are usually fixed on percentage rate with a typical rate of three to four percent and have a higher loan-to-value ratio than regular loans. As Christy explains, “During a typical three-year loan term, market fluctuation is inevitable, but stock-based loans provide a hedge because the borrower is lowering his or her investment risk in a downside market.”

As Christy reminds individuals, any loans or financial transactions come with some risk, but stock-based loans are usually overlooked as a borrowing option. Stock-based loans are not a common form of borrowing because unethical institutions have conducted immoral transactions and left borrowers on the losing end. These types of dishonorable acts have left consumers wary of such loans. EFH prides themselves in conducting each and every transaction in an ethical manner with the customer’s best interest in mind. The goal is to always provide each customer with the maximum benefit without a lot of risk.

EFH’s global company offers funds to customers against publicly traded stocks. This method of supplying capital to borrowers is nothing new, but it is being revolutionized with integrity through EFH.

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