JP Morgan to leave Mexico; refer your customers to BBVA

JP Morgan Chase & Co., a company with a global presence in financial services, stops private banking in Mexico, as some of its wealthy clients in some of Latin America’s largest economies are shifting their assets to international financial capital.

In accordance with Bloomberg, expert people point out that the largest bank in the United States signed an agreement with BBVA to transfer local business to you.

However, the source of said media said that despite the company’s departure from New York, its clients in Mexico will continue to provide banking services through its platform.

According to him, the decision to end local wealth management services in Mexico, the second largest economy in Latin America, has has been linked to a move by JP Morgan in Brazil last summer, in which closed its local private banking business and referred its Brazilian wealth clients to Banco Bradesco SA.

He points out that bankers have seen this in recent years Wealthy Latin American families are looking for money managers in capitals of the world

“In Mexico, President Andrés Manuel López Obrador’s populist policies, including a tax crackdown, have prompted some families to transfer more wealth overseasOffshore accounts represent the majority of JPMorgan’s private banking operations in Mexico, ”said one of the sources Bloomberg.

Despite his withdrawal, JP Morgan will do some business in Mexico, including investment banking, trading and treasury services. The company spokesperson did not answer.

In accordance with BloombergJP Morgan is the largest wholesale bank in Mexico, among other global giants with no retail operations.

It should be remembered that the company indicated that in August 2020 Mexico was no longer considered a “paradise” for investment under emerging markets due to the country’s economic and political conditions.

Nur Cristiani, director of the Department of Equity Analysis and Strategy for Mexico at JP Morgan, went on to explain The land was seen as a haven for investment, but it lost that status.

“Mexico is no longer that paradise, or ‘safe heaven,’ as we call it, of emerging markets.” assured.

“It was one of the markets where you could take refuge, It was the most developed of the emerging countries, today it is not. Due to the size and the conditions and peculiarities of the market and the economic and political conditions of the country, we have become yet another emerging market, ”he added.

The US financial institution indicated that before To turn the situation around, the country must opt ​​for a government policy that attracts investment to the country.

At the time, the US company pointed out that compared to other countries, Mexico looked unattractive, so it estimated that the stock market would generate a lower performance compared to countries that make up the Emerging Markets index and Latin America.

JP Morgan’s history in Mexico goes back more than a century. Since the late 1800s and up to the present day, the company has worked actively and continuously as a financial partner for the Mexican government and the country’s private sector.

MORE ABOUT THIS TOPIC: