Thursday, 12 March 2009

Brazilian Securities Regulator Says Petrobras Purportedly Leaked Details of Its Quarterly Results

The CVM notified Petróleo Brasileiro SA of irregularities on its release of the fourth-quarter results report in recent days (this week.) The release of a ''relatório financeiro´´ -- sort of a leaflet with some key financial information -- was seen by the CV as a briefing of the results, which should only be unveiled until after the market closes.

One of the many irregularities in the Brazilian stock markets is the systematic leakage of price-sensitive information, transactions and the use of insider trading by key executives and shareholders. The Brazilian government is making a great effort to correct this, but the success has been limited by a restricted budget and the lack of qualified staff at the regulatory agency to detect these problems.

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