Like all governments around the world, the Brazilian government offered assistance to the banks, so they had not any kind of problem, as is happening in the United States and some European countries.

The government, as well as analysts in the financial sector, thought it would be an good idea and prepared a financial assistance of about USD 70 billion in credit. You know what was the response we heard from many banks? “No, thanks.”

The surprising answer given by the largest Brazilian financial institutions was a shock to the government. After all, other business sectors have accepted this type of aid that the government provided for companies to have working capital such as large industrial conglomerates and the builders. But why the banks do not? What would be the reason for this strange refusal: bank denying money?

So you can understand this, you must understand a little of the Brazilian banking system.

Here in Brazil there are no more powerful people than the bankers. Even some large industrial groups have their own bank. It is the case with the Votorantim Group, which owns over 60 thousand employees and is present in the sectors of cement, paper and cellulose, orange juice, energy, mining and steel. It is one of the oldest and most powerful in Brazil and in Latin America.

However, 20 years ago, Ermírio Antonio de Moraes, leader of the group, decided it was time to open a bank. Today, that his bank is among the 10 largest in the country. When asked some years ago that had decided to open a bank, he replied “profit”. What he meant was: no other type of company here in Brazil can compete with banks and since Votorantim had to finance its businesses, it seemed more logical open its own financial institution, not to pay interest as high as pay at other banks.

Can understand how much profit is being banker in Brazil? Interest rates are high places (according to the Central Bank to control inflation), not to mention the fees charged by banks to offer their services ...

During the Cardoso administration (1994 - 2002) the banking sector has undergone a restructuring to become even stronger and more transparent, something that even I have to admit that it was necessary. During the Lula administration, the banks have reached the sky! Last year, the profit of the biggest banks has reached the sum of USD 100 billion.

But is that why they refused the help of government? Do the Brazilian banks are immune to this financial crisis?

Of course not, but the fact is the purpose of large banks is another: they want to increase their power. The banking sector in Brazil is highly competitive and the big banks are hoping that small and midsize institutions passing through difficulties so that they can be bought.

They felt smell of blood in the air and are approaching to their prey.

Fortunately, the Central Bank realized this plan and is acting through state banks to offer help to those who possible need. Let’s see who wins this game.