Brazil’s Central Bank Liquidates Banco Master as FGC Prepares Payouts

Overview

• The Central Bank placed Banco Master, Master de Investimentos and Letsbank into extrajudicial liquidation, froze assets of controllers and former administrators, and appointed EFB Regimes Especiais de Empresas as the special administrator, halting any pending sale talks.
• The deposit guarantee fund said the three institutions have about 1.6 million creditors with roughly R$41 billion in deposits and investments eligible for coverage, with no specific payout timeline.
• Eligible customers will request payment through the FGC app after the creditor list is received, completing identity checks and signing a subrogation term, and any amounts above the cap become unsecured claims in the liquidation.
• Police arrested owner Daniel Vorcaro on Nov. 17 at Guarulhos Airport as he sought to fly to Malta, and investigators allege R$50 billion in high-yield CDBs and a poorly documented R$12.2 billion credit deal involving BRB and credits tied to Tirreno.
• Healthcare group Oncoclínicas reported R$760 million in Master CDBs and booked a 40% provision of R$217 million, after prior funding linked to Master was invested in the bank’s own CDBs.