Banco do Brasil Drifts After CEO Exit; XP Sees Limited Impact

Banco do Brasil swung between gains and losses in early trading Friday after the state-controlled bank’s CEO Andre Brandao resigned.

• The stock fell as much as 0.9% to 30.17 reais in Sao Paulo before reversing losses
• Brandao departed after the lender’s push to reduce costs through branch closures and a voluntary termination program earlier this year drew President Jair Bolsonaro’s criticism
• NOTE: Investors have been pricing in higher risk of political intervention in Brazil, with some fundstrimming their stakes in state-owned companies
• The exit was somewhat expected, but highlights the risk of political interference and puts in check the ...