Decision time for Brazil's top bankers

An investment bank's problems rarely prompt an outpouring of joy. But since Brazilian leader Garantia ran into troubles, triggered by last year's Asian crisis, competitors, ex-employees and even regulators and journalists have been out celebrating. They see Garantia's fall as a punishment for past arrogance and high risk taking.

A group of Sao Paulo traders were the most brazen in their Schadenfreude. They posted "for sale" signs on the cars of their opposite numbers at Garantia, just after it took a staggering hit in the Brazilian Brady bond market last October. Their actions were also prophetic - six months later Garantia is on the block.

After a period of denial, Garantia partners now admit they have held talks about a deal with several overseas banks, including Goldman Sachs. But with Goldman involved in its own debate on whether to go public, this prospect now appears...