Banco Master Liquidated With R$41 Billion FGC Payout as Probe Hits BRB

Overview

• Brazil’s central bank decreed Banco Master’s extrajudicial liquidation and triggered the FGC to cover eligible clients up to its limits, with an estimated R$41 billion to be disbursed to about 1.6 million creditors.
• Federal police arrested controller Daniel Vorcaro in Operation Compliance Zero, alleging about R$12 billion in fraud tied to fake credit portfolios and high-yield CDB issuance.
• Court and investigative records say BRB transferred roughly R$16.7 billion to Master since 2024, with at least R$12.2 billion flagged as suspect, and a judge suspended BRB’s president for 60 days.
• Internal central bank documents state BRB made accounting entries without documentary support after buying Master portfolios, while the BC froze assets of controllers and halted any sale of the bank.
• Investigators will scrutinize Master’s sale of non‑FGC‑covered notes to public pension funds, including about R$1.867 billion in placements and significant exposure at Rio’s Rioprevidência.