February 8, 2023

Fernando Haddad messes up an interview and turns it into a joke

The Finance Minister’s confusion did not go unnoticed on social media. Understand what Fernando Haddad did

Minister of Finance , Fernando Haddad (PT), got confused with the acronyms during an interview and confused CVM (Securities Commission) and CMN (National Monetary Board). Although they may be somewhat similar, they both designate very different institutions.

The first is an autonomy linked to the portfolio headed by Haddad. The tasks of inspection, regulation, discipline and development of the stock market in Brazil are piling up. The second refers to a higher body of the national financial system.

Its primary responsibility is coin drafting and credit in the country, according to CNN Brasil. Haddad made a misstep while participating in the Bom dia 247 programme. At that time, the interviewer asked the minister if he already had a definition of CVM names.

Fernando Haddad’s confusion

The mechanism for checking risks will go back to what it has always been: planning, treasury and central bank. This form will return, so Simone Tebbit and Roberto Campos and I will be sitting in the seat. This will be the self-assessment mechanism that determines everything: the credit policy, the inflation target, and whatever its internal regulations say,” he said.

After he began his speech, Haddad continued for another six minutes. Then, when he fell silent, one of the presenters warned Labor that he hadn’t really answered his question. The episode took place last Tuesday (3).

“When you said CVM, which is the JSC, I think you understand CMN,” he suggested. Then the interviewer added that the question was really about how to curb speculation in the market, about his role as “market warden”.

Fernando Haddad’s answer indeed

These stock movements from Petrobraswhich goes up or down by 10%,” said the interviewer. Haddad had initial doubts about who made the mistake first, but soon after admitted the misstep and apologized.

Once the misunderstandings are cleared, Haddad explained that when there are speculative movements, the identity verification mechanism can serve to identify potential leaks of information. But he considered that there is still no evidence of this happening.

He believed that “movements in the stock market, and future interests, are explained much more by the fact that people are grabbing figures from the previous government that they did not have, or did not want to see.”

Who runs CVM

Haddad also added that the consultants’ committee has an executive secretary who organizes the meetings, but in reality it is chaired by three members. Still according to the wallet holder, they are the ones who determine the monetary and credit policy in Brazil.

On the social network for videos TikTok, the user cut and edited the excerpt from the program, adding a caption. “When I did not study with T2 and I have to explain the role of CVM.” The article was also circulated on Twitter to mock the minister.

Photo: Alf Ribeiro/Shutterstock