Latin Finance - October 2008 - 4

People BofA Buy Raises Merrill Doubts Merrill Lynch executives daubed lipstick on the pig of a forced sale to Bank of America, but the future of the shop’s growing LatAm franchise is all but certain. “[BofA] highlighted Merrill’s emerging market franchise as one of the things they were interested in,” says an EM banker at the sold entity, citing remarks by Merrill CEO John Thain and BofA CEO Ken Lewis on calls with investors after the mid-September sale. Merrill’s growing platform in LatAm is seen as highly complementary to BofA’s virtual nonexistence in the region. But BofA has shown little appetite for LatAm, least of all investment banking. A LatAm-focused official at BofA says he hopes the commercial bank’s appetite for the region grows with the newly gotten franchise. The banker compares Merrill’s LatAm unit to LaSalle’s trusts business, which BofA initially relegated as low priority following the merger, but slowly came to embrace once it became clear that LaSalle’s institutional and human infrastructure was robust and lucrative. Merrill’s strong US-based support for EM is a big plus, he adds. “It’s going to be up to Merrill to make a case to BofA to keep some businesses,” says a headhunter, referring to structured products, derivatives and LatAm. “BofA recently got rid of their high risk businesses including EM,” she adds. BofA’s banking activity in LatAm is limited to Mexico. The bank sold its BankBoston retail banking units in Brazil, Chile and Uruguay. BofA’s Lewis quipped last year that he had had “all the fun I could stand” in investment banking. It remains to be seen how much stomach he will have for LatAm, particularly on the scale Merrill was building it. Carlos Gutierrez, head of Mexico’s investment banking business, will become chairman of Merrill’s LatAm business. Lehman Close to Extinction Lehman’s opportunistic involvement in LatAm investment banking is set to vanish as the legendary broker-dealer heads into Chapter 11. The shop’s fixed income trading and sales business was heard being dismantled in September, with a number of senior executives including Mo Grimeh, head of EM, already in talks for jobs at hedge funds. In LatAm, the shop was known for bond trading, fixed income research, exotic private placements and a little M&A. It has had a longstanding relationship with Pemex that has yielded several high profile bond trades. Lehman had also begun building a structured products team focused on Brazilian fixed income. But insiders say that business is likely to vanish, with competitors picking off the stronger individual performers, including Brazil sales and trading, and private banking. One headhunter who says he has been flooded with Lehman resumes notes the shop never really committed to EM, though it has good bankers and traders, some of whom are being sought by other institutions. WestLB hires Santander Vet WestLB has hired Fuensanta Diaz Cobacho, a 10-year veteran of Santander and a managing director in charge of North America project finance. Diaz Cobacho will be a managing director in WestLB’s global infrastructure and energy group, covering the Americas including LatAm. She will work on LatAm deals, and will lead projects in the region. Sumitomo Mitsui has expanded its New York-based LatAm project finance team with three new hires. Isaac Deutsch has joined as deputy general manager and group head. The former executive director of LatAm project finance at WestLB had been working as an advisor to AEI after leaving WestLB in its March restructuring. He is joined by Ignacio Aicardi, formerly of Bear Stearns, and Luis Fernando Perdigon, from Standard Chartered, both appointed vice presidents. LF Merrill Elevates Bettamio Before news of the sale, Merrill Lynch said it had tapped Alexandre Bettamio, head of its Brazil investment banking unit, to be its Brazil country head. Merrill is establishing a country head structure in the region in order to better integrate its markets and investment banking division with wealth management. Daniel Gonzalez, country head for Argentina, will assume the same role for Chile, Peru and Uruguay. Alberto Ardura, who covers fixed income, currencies and commodities in Mexico, will become country head there. Andres de Corral and Andrew Gray will be co- heads of the Central America, Caribbean and Andean regions. Separately, UPDATE For daily news of people moves see www.latinfinance.com 4 LATINFINANCE October 2008

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Latin Finance - October 2008

Table of Contents for the Digital Edition of Latin Finance - October 2008