Change in command generates resistance at Caixa, but also expectations of better management – 09/03/2023 – Market

The change in command of Caixa Econômica Federal, from current president Rita Serrano to former federal deputy Margarete Coelho (PP-PI), divides opinions in the bank. Despite there being resistance to the arrival of a centrão representative at the head of the institution, there is also a view among the members that an experienced policy can strengthen the performance of the state-owned company.

The replacement is part of the government’s rearrangement to include the PP and the Republicans in the governing coalition.

Coelho has no academic background in finance. She is a lawyer by training, specializing in electoral law, and defends the mayor, Arthur Lira (PP-AL) in cases – including actions against the press.

She entered politics in 2010 as a state representative. In 2014, she was elected vice-governor on the ticket of today’s Minister Wellington Dias and, in 2018, she was elected federal deputy.

It gained prominence in Congress at the hands of Lira, who appointed her to report on important projects — among them the one that buried the National Security Law and the one that changes all electoral legislation.

Coelho ended up not being able to be re-elected in 2022 and is now director of Administration and Finance at Sebrae. The support entity for small and micro-enterprises, despite being private, is strongly influenced by the government and the political world.

Serrano, in turn, was the workers’ representative on the financial institution’s board of directors for three terms. In the last election, she had more than 90% of the votes.

The current president took over Caixa at a troubled time in the bank’s history, which suffered from allegations of harassment and electoral use of the institution during the government of Jair Bolsonaro (PL).

She made a career in banking unionism, without accumulating much experience in managing the institution. This weighed in to her internal disrepute. The criticism is that, in addition to the lack of managerial experience, she would not have surrounded herself with high-level people to run one of the largest banks in the country.

One of the points that most bothered Caixa’s career employees during Pedro Guimarães’ management was precisely the appointment of people who were outsiders to the bank or with little experience to key positions.

The two most cited examples are the Vice President of Retail Business, Maria Cristina Farah, and Wholesale Business, Ronny da Costa.

Farah’s top position at Caixa was that of eventual replacement for regional manager in ABC Paulista, a region from which Serrano also came.

Costa is from the same region and reached a position above Farah’s in his career, that of Executive Superintendent, which is also a long way from that of vice president.

When asked to comment on the topic, Caixa informed that it “strictly observes the provisions of the State-Owned Companies Law and the Company’s Bylaws” on filling positions.

“The bank reinforces that its directors are evaluated and fulfill such requirements. The directors mentioned are career employees of the bank, with several years of experience in management, as well as fulfilling all the legal and statutory requirements”, he said.

The internal expectation with the possible arrival of Coelho is that the choices for the vice-presidencies will be of cadres with a successful history at Caixa.

Internally, the view is that, of the 12 vice-presidencies, only two should remain as they are. Housing, headed by Inês Magalhães, and Government, headed by Marcos Bonfim.

In order to try to reduce the damage caused by the loss of control of Caixa, PT supporters defend that the bank’s strategic vice-presidencies remain with the party, especially that of Magalhães. But the União Brasil party is seeking this position, which should generate yet another political dispute.

The structure commanded by Magalhães is of special importance for the federal government. Caixa is the largest bank in real estate financing in the country and through it passes the bulk of Minha Casa Minha Vida, one of the main social programs of the Lula government (PT).

Despite Caixa’s internal expectation that Coelho will make career appointments, the government’s political wing also placed the bank’s vice-presidencies in negotiations with the centrão. The positions must be distributed to nominees from the PP, Republicans and União Brasil.

In the PT, the eventual choice of Margarete Coelho for the presidency of Caixa is seen with reservations. In previous PT governments, the party managed to maintain command of the bank.

Members of the PT summit recognize that the former deputy has a conciliatory profile and stands out for her political articulation, which is considered a positive profile for the management of a bank with such capillarity and in charge of operationalizing government social programs.

However, the PT would prefer to keep a person of trust from the acronym in the state-owned company.

“Of course the party would like more space, but Margarete is very respected in the PT. And, even if she is chosen, the important thing is that the PT continues to formulate social policies”, said PT leader in the Chamber, Zeca Dirceu (PR), when referring to the prospect of Wellington Dias remaining in the Ministry of Social Development, which is coveted by Ciro Nogueira’s PP.

Petistas are divided over Rita Serrado’s performance. One wing criticizes the current president for her lack of experience and political savvy. Another group judges that she has done nothing wrong.

But within the PT there is a unanimous view that the best thing would be for the party to remain at the head of Caixa, despite the praise for the former PP deputy.

Because of the closeness she has with Lira, Margarete Coelho was responsible for reporting controversial topics that the mayor took on in 2021 and 2022. She was rapporteur for the PEC on Parliamentary Immunity, the proposal to loosen the State-owned Law and the new Electoral Code , for example.

Her performance and the dialogue she had with the PT at the time varnished the former deputy’s curriculum, in the view of PT members.

Another mitigating factor, in the party’s assessment, is that Coelho was already aligned with Dias in Piauí and became involved with social agendas in the Chamber.

This, however, does not erase the PT’s memory of the former deputy’s performance alongside Michele Bolsonaro in Bolsonaro’s re-election campaign, in addition to being one of the main allies of Ciro Nogueira, who is from Piauí, chairs the PP and was Bolsonaro’s former minister.