UPDATE 1-Brazilian bank Fator taps Bologna as CEO, source says
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NEW YORK, March 25 (Reuters) - Marco Bologna has been tapped as Brazil's Banco Fator SA's new chief executive officer, a source with direct knowledge of the situation said on Wednesday, as the lender concluded a three-year reorganization plan that set its focus toward mid-sized corporate borrowers.
Bologna will start at the São Paulo-based lender effective April 1, said the source, who is not allowed to discuss the issue publicly.
Earlier this month, Bologna announced a decision to step down as president of airline TAM SA, the Brazilian unit of LATAM Airlines Group SA's, and become its chairman.
Prior to joining TAM in 2001, Bologna worked in Brazil's financial industry for more than 20 years. He replaces Venilton Tadini, a 20-year Fator veteran who led a restructuring plan that downsized some of Fator's business areas to refocus on more profitable areas such as financial advisory and structured lending.
Fator's media office declined to confirm Bologna's appointment.
Wholesale and investment banks in Brazil are grappling with slumping confidence and feeble demand for credit and financial advisory services as Latin America's largest economy is expected to shrink this year at the steepest pace since 1992. Preliminary data by Thomson Reuters showed that the value of mergers and acquisitions deals for the first quarter in Brazil is so far the lowest in 11 years.
Tadini and Walter Appel, the bank's controlling shareholder, had agreed that Tadini would join Fator's board once the reorganization plan was completed, the source said. Tadini, who for most of his career worked in mergers and acquisitions at Fator, became the bank's CEO in 2011. (Reporting by Guillermo Parra-Bernal; editing by Chizu Nomiyama and G Crosse)
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