SAO PAULO, Nov 25 (Reuters) - Clients withdrew funds equivalent to less than 1 percent of assets under management at Grupo BTG Pactual SA following the arrest of the investment bank’s top executive on Wednesday, an amount smaller than initially thought, according to a source with knowledge of the bank’s strategy.
BTG Pactual, which has about 230 billion reais ($61 billion) in assets under management, tapped less than 5 percent of its about 40 billion reais in cash reserves to cover those redemptions, said the source, who requested anonymity because of the sensitivity of the issue.
Brazil’s federal police arrested André Esteves, the chief executive and controlling shareholder of BTG Pactual, on suspicion of obstructing the country’s most sweeping corruption investigation ever. The situation sent shares of BTG Pactual into a dive that wiped out a third of its market value.
($1 = 3.7546 Brazilian reais)
Reporting by Guillermo Parra-Bernal; Additional reportnig by Tatiana Bautzer and Aluísio Alves; Editing by Chizu Nomiyama