The US Federal Reserve has allowed the Banco Bradesco empire to acquire all the voting shares in BAC Florida Bank, which prides itself on helping Latin American HNWs, families and their businesses establish, preserve and protect their legacies.
Bradesco, with consolidated assets of approximately US$276.5 billion, is the third largest bank in Brazil by assets. It engages in wealth management, insurance and investment banking activities not only in Brazil but also in Argentina, the Cayman Islands, Hong Kong, Luxembourg, Mexico, the United Kingdom and the United States, primarily through a federally-licensed branch in New York. It has a licensed broker-dealer, Bradesco Securities, in New York.
Banco Bradesco, a foreign bank subject to the provisions of the Bank Holding Company Act 1956; Bradesco’s parent companies, Cidade de Deus Cia Comercial de Participações, Nova Cidade de Deus Participações, BBD Participações, and Fundação Bradesco; and a direct subsidiary of Bradesco's, Lecce Holdings, all from Osasco in Brazil, have obtained the Fed’s approval to become bank holding companies under section 3 BHC Act. This allows them to own BAC Florida Bank collectively.
BAC Bank, with consolidated assets of approximately $2.3 billion, is the 423rd largest insured depository institution in the United States, controlling AuM of approximately $1.9 billion, which represent less than 1% of the total amount of deposits of insured depository institutions in the United States. It operates one deposit-taking office in Florida.
Section 3 BHC Act prohibits the Fed from approving a proposal that would result in a monopoly. The proposal has gone ahead because the applicant-firms and BAC Bank do not compete directly in any retail banking market. The order will come into effect sometime in the next three months.