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Brazilian markets are getting slammed, and Wall Street firms are hurting

May 18, 2017, 22:51 IST

Demonstrators protest against Brazil's President Michel Temer in Sao Paulo, Brazil, May 17, 2017. The signs read: &quotIt's over Temer! General elections. and Out Temer! Out reforms and General elections."REUTERS/Nacho Doce

Brazil's markets are getting slammed as a political scandal unfolds involving alleged bribery and the country's president.

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And some of the biggest firms in finance are potentially getting hurt.

The biggest exchange-traded fund focused on Brazil is the iShares MSCI Brazil Capped ETF (EWZ), with more than $5.8 billion in assets.

As of mid-day Thursday, the ETF has fallen more than 16%, according to Markets Insider data.

As of March 31, some of that ETF's biggest holders included:

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  • Bridgewater Associates
  • Morgan Stanley
  • UBS
  • Goldman Sachs
  • Credit Suisse
  • BNP Paribas
  • Bank of America
  • State of Tennessee Treasury Department

That's according to regulatory filings analyzed by Bloomberg.

To be sure, these positions may have since changed, and the Wall Street banks are likely holding the ETF as market-makers, which is to say they are providing liquidity for those trading in and out of the fund.

Still, it's a tough day for those trading Brazilian assets.

With assistance from Joe Ciolli.

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