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Article: Itau, Unibanco Merger Raises ABS Questions.(Global)
- Article from:
- Asset Securitization Report
- Article date:
- November 10, 2008
- Author:
CopyrightCOPYRIGHT 2008 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Felipe Ossa
An announced merger between Brazilian banking behemoths Banco Itau Holding Financeiro and Unibanco-Uniao de Bancos Brasileiros has reverberated through Sao Paulo's financial sector, as the move would produce the country's largest bank.
As of September, the combined assets of the two giants totaled R$575 billion ($271 million), accounting for roughly 20% of the local banking system.
The merger's impact on securitization is not clear cut. On the cross-border front, it creates a potential giant of diversified payment rights, the collateralization of electronic wire transfers used as a funding tool by banks throughout emerging ...