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Bradesco, Luiz Carlos Trabuco Cappi, And Their Interactions Over The Years

In 2006, he won the Insurance Personality of the Year after thirty-eight years of service for the same financial institution. The following year, he won the same award.

In 2009, he was appointed the President of Banco Bradesco, after serving over forty years the bank, working for Bradesco and Bradesco only throughout his entire lifetime. Six years later, he began negotiations with a top ten Brazilian bank, HSBC Brazil, to purchase its entire assets, including all branches, automated teller machines, and likeness.

That same year, in 2015, Isto E Dinheiro named him the Entrepreneur of the Year in the field of financial services.

Luiz Carlos Trabuco Cappi is one of the most popular bankers in the entire country of Brazil, even though it’s the fifth-most populated nation and has tons of competition in its banking industry. His public image started gaining traction just a handful of years following the turn of the millennium, when Mr. Trabuco was crowned the President of Bradesco Seguros, the formal name of Bradesco’s insurance division. In 2006, just three years after Mr. Trabuco had been appointed as leader of Bradesco Seguros, public knowledge of Luiz started to barrel out into the financial news sphere. While some executives are given awards, accolades, and press for no good reason, or at least not being as deserving as they’re touted to be, Luiz Carlos Trabuco Cappi’s nearly four full decades of service for Banco Bradesco as of 2006 were more than enough to begin winning him acknowledgments.

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Mentions of Luiz Carlos Trabuco Cappi in the press stayed steady for a few years, then increased yet again in March of 2009, when he was appointed the President and Chief Executive Officer of Banco Bradesco. They really began to increase in frequency when he made public the idea of purchasing HSBC Bank’s assets in the middle of 2015. It was around this time that Mr. Trabuco faced criticism for purchasing HSBC Holdings’ Brazilian financial services operations for a whopping $5.2 billion, although he stood tall and endured critics’ lashing out.

Considering that Bradesco piled on about six years’ worth of organic growth – that generated from within, rather than through mergers, acquisitions, or purchases of other organizations’ assets – with the 5.2 billion dollar purchase of everything HSBC-related, hindsight proves that Mr. Trabuco made a brilliant decision to hold true with the purchase. Several ideologies were factored into the purchase of these banking assets, giving way to the exorbitant price tag that included billions of dollars of goodwill – dollars paid in the purchase of an entity that exceed the total fair value of assets being purchased.

Itau Unibanco, the largest bank in Brazil since 2008, was formed as the result of a merger between two entities. Since Bradesco was the largest bank for a number of years prior to Itau Unibanco’s taking over, it made sense for Mr. Trabuco to narrow the gap between the two banks in size. Also, HSBC Brazil had been underperforming for some years, as its parent’s, HSBC Holdings, corporate office was located in London. As such, its executives were largely disconnected from what was actually going on in South America.

These two factors combined, along with the fact another bank outside of Bradesco and Itau Unibanco possibly gobbling up HSBC’s South American assets, spurred Luiz Carlos Trabuco Cappi to move forward with the acquisition of HSBC. The level of growth obtained from the purchase of HSBC made the $5.2 billion purchase price well worth the effort, even though its assets weren’t quite worth $5.2 billion.

Mr. Trabuco is slated to be Bradesco’s President and CEO for the forseeable future.

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