China’s $1.7 trillion hangover

China’s $1.7 trillion hangover

Up to 40% of China’s $1.7 trillion LGFV loans are at high risk of default. What’s a panicking Beijing to do?

The money network:

The money network:

Why crowdfunding threatens traditional bank lending

October 1998

Luis Cezar Fernandes, President, Pactual



Luis Cezar Fernandes had planned to retire in two years' time when he turned 55. The founder of Brazilian investment bank Pactual was looking forward to a more leisurely life on his farm. But that was before two crises erupted - the global meltdown that has challenged all Brazilian bankers and the rift inside Pactual that led to staff breaking away to start their own operation and a change in the firm's ownership.

Fernandes is a self-made man who has overcome some long odds to reach his current position. His family was poor and he received...


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