Case | HBS Case Collection | February 2002 (Revised February 2003)

Argentina's Financial System: The Case of Banco de Galicia

by Rafael M. Di Tella, Tarun Khanna, Huw R. Pill, Alexandra de Royere and Ingrid Vogel

Abstract

Describes the development of Argentina's financial system after the "Tequila Crisis" that came about as a result of the speculative attack on the Mexican peso's peg to the U.S. dollar in December 1994. Although Argentina's banking system was strengthened overall due to changes implemented to address the crisis, most of the country's domestic private banks were either taken over by foreign banks or failed. Focuses on how in the year 2000, in an effort to remain Argentine owned, the last remaining large domestic private bank adopts a share offer considered by some--particularly a vocal member of one of the bank's controlling families--to be unfair to minority shareholders.

Keywords: Finance; Emerging Markets; Macroeconomics; Business Strategy; Banks and Banking; Financial Crisis; Family Business; Acquisition; Banking Industry; Argentina;

Citation:

Di Tella, Rafael M., Tarun Khanna, Huw R. Pill, Alexandra de Royere, and Ingrid Vogel. "Argentina's Financial System: The Case of Banco de Galicia." Harvard Business School Case 702-033, February 2002. (Revised February 2003.)