QCOSTARICA (Bloomberg) — European banks are on the retreat all across Latin America.
Societe Generale SAPhotographer: Jason Alden/Bloomberg
Societe Generale SA announced in February that it’s dismissing more than 1,000 workers while exiting the consumer- finance business in Brazil.
In August, HSBC Holdings Plc sold its unprofitable Brazilian unit, with more than 20,000 employees. Two months later, it was Deutsche Bank AG’s turn. The German lender said it’s closing offices in Argentina, Mexico, Chile, Peru and Uruguay and moving Brazilian trading activities elsewhere. Barclays Plc is shrinking its operations in Brazil too.
The exodus threatens to deepen Latin America’s turmoil, making it harder for companies and consumers to obtain financing. The region already is out of favor as sinking commodity prices drive it toward the worst recession since the