Where to Put Your Money?

Maybe Brazil:

Urban Larson, manager of the F&C Latin American Equity fund, believes Brazilian banks may emerge among the winners from the global financial crisis.

His comments follow the Brazilian Central Bank's approval of the merger between Banco  Itau and Unibanco; Brazil's second and third largest private sector banks.

[...]

"The Brazilian banks learned the hard way about the importance of maintaining strong balance sheets during the country's bouts of hyper-inflation, devaluation and other financial turbulence and could now emerge among the winners in the troubled global financial sector," he says.

Brazilian banks should also be able to capitalise on their competitors' weakness should Citi or other global banks need to pull out of Latin America.

How strong is the merged Banco Itau? About this strong:

Brazilians had something extra to celebrate at carnival this year — the relative health of the country’s financial system. While investors have fled emerging markets, Brazilian banks have held up nicely compared with rivals in the United States and Europe. They might even be able to lend a hand.

Chief among the revelers is Banco Itau. Fresh from its merger with Unibanco, the São Paulo-based bank has emerged as the biggest bank south of the Mexican border. The market value of its parent, at just around $28 billion, is nearly equal to the combined worth of Citigroup and Bank of America.

As is mentioned in the article, speculation is being made that Itau may be interested in Banamex, a Citigroup bank in Mexico. Although, Banco Itau is denying it, I suspect that they will eventually acquire it. Citigroup is anxious to raise capital and potential suitors are so few it would be charitable to call them scarce. Itau is probably seeking to work out its best deal, and at the risk of grotesque understatement, it's a buyer's market.