Brazil’s real weakened the most among major currencies a corruption probe that has engulfed the state-run oil giant reached Grupo BTG Pactual, the largest independent investment bank in Latin America.
Andre Esteves, BTG Pactual’s billionaire chief executive officer, was arrested along with the government’s leader in the Senate, Delcidio Amaral, a police press official said, declining to provide details on the specific allegations against either. BTG’s press office said it couldn’t immediately comment, while calls and messages to Amaral’s press officer and chief of staff went unanswered. The real dropped 1.6 percent to 3.7608 per dollar at 9:27 a.m. in Sao Paulo.
“Sentiment is once again negative in Brazil, this is a big issue for the country,” Patrik Kauffmann, who helps manage $11.2 billion of assets at Solitaire Aquila, said from Zurich. “If the result is that corruption is eradicated, the outcome on a long-term basis is positive, but in the short term it’s a big issue with all the business leaders who should manage and grow their business in jail.”
Brazil Energy Insight 
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