AMLO gives up his plan to buy Banamex on the stock market

At the end of May, Citigroup announced that it had given up selling Banamex directly, so it will now do so through an initial public offering (OPI) in the following months.

President Andrés Manuel López Obrador expressed his interest to participate in the operation through a public-private alliance, since in his opinion the purchase of Banamex is a good deal.

The head of state commented that the government could put up to 3 billion dollars to buy Banamex shares, for the rest it would be available to Mexican shareholders at all levels.

The idea of ​​the Head of State, although it was considered viable, was not viewed favorably by bankers and analysts, among other reasons because the objectives of one and the other are diametrically opposed.

“Commercial banking is about a business, that is, about being a financial intermediary. And the government must have other types of incentives such as giving support to the population and granting credits to some sectors that imply a greater risk”, recently commented Janneth Quiroz, deputy director of economic analysis at Monex.

Serfin, Bancomer, Banco del Atlántico and Banamex itself are examples that commercial banking in the hands of a government is not a good business.