BTG Sheds $5 Billion in Value Over Two Days Amid New Allegations
27 Aug 2019

Banco BTG Pactual SA extended a two-day plunge as new allegations added to an ongoing investigation targeting the Brazilian bank.

Shares slumped as much 30% on Monday as local website O Antagonista said Brazil’s police are investigating allegations that the bank had a department advising clients on money laundering. BTG said in a statement that the report was “absurd” and strongly denied any irregularities.

The report deepened concern with the bank, which had already seen its shares fall 15% late last week as police searched the bank’s offices and the homes of its founder, Andre Esteves. The drop has erased 22 billion reais ($5.3 billion) in market cap.

On Friday, BTG said it was cooperating with investigations and that an internal investigation from 2016 found no evidence of misconduct.

By Vinicius Andrade and Felipe Marques, Bloomberg, 26 August 2019

Read more at Bloomberg

Photo: Luiz Prado/ LUZ [CC BY 2.0], via Wikimedia Commons

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