BNP Paribas, through its Cetelem subsidiary, bought Banco BGN, a leader in consigned credit in Brazil, at the end of July.
Dresdner Kleinwort is also seeking an acquisition in Brazil, with rumours that it is in talks with Banco BMG. Other foreign banks that have been tipped as looking to buy include Lehman Brothers, Goldman Sachs and Merrill Lynch. One rumour has linked Lehman to Banco Fator, a mid-sized investment bank, which has emerged as a leading brokerage in the country.
At the start of June Société Générale bought the local mid-sized Brazilian bank Banco Cacique. This is its second purchase of 2007 earlier it bought Banco Pecúnia. The French bank hopes to arrange securitizations of payroll deductible loans and auto loans originated by its Brazilian acquisitions.