Brazilian securities commission adopts harsher stance on Americanas
After embattled retailer Americanas admitted last week that its leadership had engaged in years of accounting fraud, throwing former executives under the bus in the process, securities regulators saw an opportunity to fully grasp the extent of the company’s misdeeds.
- João Pedro Nascimento, head of Brazil’s Securities Commission (CVM), told a parliamentary inquiry that he now expects former Americanas executives to come forward and cooperate with investigations, a notable change in tone from months ago.
State of play. In a congressional hearing, Mr. Nascimento reported that the CVM now has 20 administrative proceedings examining the responsibility of each one of those involved in the scandal, not just Americanas. Until last week, the number of proceedings publicly reported by the agency was 14.
- Sixteen of the 20 proceedings are ongoing, and two have turned into official inquiries.
- In one of the inquiries, the CVM listed Sérgio Rial among the accused. The executive was announced as the replacement for former Americanas CEO Miguel Gutierrez, but he did not last a month in that position. He resigned on the same day that Americanas informed the market of inconsistencies in its balance sheets.
Harsher tone. Unlike previous occasions when...
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