JPMorgan closes its private banking business in MexicoAccording to people familiar with the subject, wealthy clients in some of Latin America’s largest economies are funneling their money into international financial capital.
The largest bank in the US has signed an agreement to transfer its domestic business to BBVA Mexico, Loneliness is in the country of Banco Bilbao Vizcaya Argentaria, someone said.
still A New York-based company will continue to serve clients in Mexico Through its platform outside the country, one of the sources said.
The decision to halt domestic wealth management services in Latin America’s second-largest economy follows a similar move from last summer in Brazil as JPMorgan shut down its domestic private banking business and referred Brazilian wealth clients to Banco Bradesco.
In recent years, bankers added, wealthy families in Latin America have been searching for money managers in world capitals. In Mexico, President Andres Manuel Lopez Obrador’s policies, including government programs to prevent tax evasion, have prompted some families to divert more wealth abroad.. One person said that offshore accounts account for the majority of GBMorgan’s private banking business in Mexico.
JPMorgan will maintain other companies in Mexico, including Investment banking, trade and treasury services. A company spokesman declined to comment.
GB Morgan is the largest wholesale bank among the world’s giants without retail operations, according to data from the National Commission on Banking and Securities (CNBV). The data stated that the company’s other lines of business are growing, and last year the bank increased its capital by 8 billion pesos (393 million dollars) to 19.5 billion pesos.
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