«Monthly Payola» | The Other Shoe

The corruption case that has been the situation’s cross to bear in recent months — senior leaders found guilty of money laundering and bribery by Brazil’s Supreme Court — now becomes the burr under the saddle of the opposition.

Source: G1

On December 19, chief justice Barbosa ordered that depositions be taken from defense witnesses in the so-called «monthly payola of Minas Gerais» case. Federal judges from three states — Minas Gerais, Pernambuco and Ceará — will take the statements of eight defendants.

The translation «monthly payola» is how State Department report writers, their work revealed by Operation Cablegate, cleverly translated the term

In the same case, former senator and current federal deputy  Eduardo Azeredo (PSDB-MG) is accused of siphoning off public funds and laundering the proceeds as part of an alleged “political slush fund” scheme used in his run for reelection as governor of Minas in 1998.

I believe the governor was also the president of the PSDB and stepped down after the scandal broke.

Broker and Broker | A Lean Year for Intermediaries

Member brokerages of ANBIMA — Brazilian Association of Capital and Financial Market Institutions

Source: Valor Econômico— Portal ClippingMP.
Translation: C. Brayton

Frustrated by growing costs, most Brazilian independent brokerage houses will close out 2012 in the red. In a survey of the 27 largest Bovespa traders not tied to the major banks, 16 lost money in the first three quarters of 2012.  Among the  houses operating in the black, only one reported profits higher than R$1 million — US$500,000.

The year was notable for internal restructuring and new product distribution strategies. With a view to the future, brokers in this sector are searching for partners in order to survive.  The goal is to rationalize and reduce costs to compensate for lesser margins.

Edemir Pinto, of the BM&F: “Brokerage houses need to think about consolidation.”