Brazilian Banks Show JPM, Citi and GS Who Really Rules The Markets

Mega IPOs are becoming more common place in Brazil, and guess which major bank is doing them? Not JPM, GS or Citi. It's the big strong and very well capitalied Brazilian banks: Itau

Gerdau did $3.5 billion share sale last month, handled by 3 Brazilian banks.

Magazine Luiza's initial public offering in April that raised $586.7 million, handled by Itau.
Jean-Marc Etlin, vice president for investment banking at Itau BBA, says that  “Brazilian companies and entrepreneurs are learning that they don’t need a foreign bank to help them with their financing needs. Local banks have got what it takes to do even the most sophisticated deal.”

Says Bloomberg: "The strength of Brazilian lenders in investment banking is unusual for emerging markets, said Christopher Harland, head of Latin America for Morgan Stanley, which has 300 people in Sao Paulo, Brazil’s financial hub.

“You don’t find many markets where you have those kinds of strong, well-capitalized, entrenched competitors,” said Harland, who is based in New York.

Brazilian issuers sold a staggering USD $180 billion in stocks and fixed-income instruments in 2010, including the world's biggest IPO ever, Petrobras (USD $70 billion), where Itau acted as joint global coordinator.

Brazil had 143 mergers and acquisitions totaling $84.8 billion in 2010.

Itau trades in New York with symbol ITUB. Bradesco trades as BBD. We track them all live here.