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Pictures and information for Panel FOSTERING THE FINANCIAL MARKETS IN L.A.:

Disclaimer: These notes below were taken by students during the conference. Any misrepresentation of facts, omission or error of interpretation is unintentional. They are intended to encapsulate the presentations for conference attendees and do not represent the views of MIT Sloan School of Management. 

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Speaker: Roberto Setubal - Banco Itau
Main points

bulletIn Brazil, inflation led to a very high bancarization and efficient transferring systems to move money around the country
bulletA strong consolidation took place in the banking sector
bulletIn contrast to other Latin American countries, Spanish and other foreign banks were not very successful, mainly because the local banks were already large and solid
bulletThe banking system in Brasil is well capitalized and managed
bulletOn the negative side, the unstable economic environment, the high level of public debt and the high loan rates are important. The main issue, nevertheless, is the high credit default rate that banks in Brazil have to face
bullet Challenges: Reduce economic volatility, Reduce public debt, Reduce the cost of financial intermediation (reducing taxes and reserve requirements).

Speaker: John Donnelly - Bank of America
Main points

bulletThank God we had Nafta.
bulletBut unfortunately, we are not taking full advantage of Nafta.
bulletWe made three mistakes: Promoted cheap labor industries, Sold our banks to foreigners and Did not implement complementary reforms, like labor, fiscal and energy reforms.
bulletProblems that President Fox is facing:
bulletNo one party has control over the Congress
bulletImpossible to implement reforms
bulletThe local capital markets are the only rising star in Mexico, although concentration in the hands of foreigners has to be solved. Unfortunately, the government is not helpful.

Wong Auditorium was full

Mr. John Donnelly (Bank of America) and Andreu Cors (Organizing Committee)

Mr. Roberto Setubal - CEO of Banco Itau and the state of banking in Brazil

Mr. John Donnelly talking about Mexico and Financial Markets

Panel - Roberto Setubal, Vittorio Corbo and John Donnelly

Interesting exchange of ideas between Mr. Corbo and Mr. Donnelly

Luis Laguna - MIT Sloan MBA (2004)

Anna Nechitailo (MIT Sloan MBA 2004) asking about securitizing products in Latin America

Mr. Setubal also gave his input on the issues of foreign banks in Latin America

The importance of financial markets for Latin America is clear

Only world class personalities came to the 7th MIT Sloan Latin American Conference

Thank you to the panelists for their contribution

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