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JPMorgan pushes on with talks over Gávea

The article reference below highlights an interesting development. I happen to know that Morgan Stanley Private Equity Asian team is much more nervous about the Volcker rule and does not rule out the possibility of having to become independent. JPMorgan, on the other hand, seems to be on prowl to acquire HF/PE firms.

I think there are two points that are worth mentioning in connection with these differences:
1. JPM is much more of a deposit holding bank than MS. As such, it is likely they will be less affected by any looming regulation.

2. Even more importantly IMHO, Brazil is increasingly catching the headlines and claiming the spotlight, in a sense becoming "the next China". And in many respects, for a good reason: it's much less reliant on exports (and when it comes to oil, on imports), the fundamentals look robust, the GDP growth is accelerating and the inflation has been within a reasonable range for years.

I have never had the pleasure of talking to a Brazilian hedge fund, but I will be definitely looking forward to such an opportunity.

JPMorgan pushes on with talks over Gávea:
 "JPMorgan Chase is pushing ahead with talks to buy a large Brazilian hedge fund and private equity group, in spite of impending US legislation designed to limit the involvement of commercial banks in such activities"

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