BRB Says It Has Recovered Over R$10 Billion From Disputed Banco Master Deals

Overview

• BRB reports more than R$10 billion of R$12.76 billion tied to Master-linked portfolios has been liquidated or substituted, with the remainder not a direct exposure to Master.
• The bank says the substitutions and added guarantees followed contractual terms and were reported to and accompanied by the Central Bank.
• The Central Bank ordered Banco Master into extrajudicial liquidation on November 18, and Federal Police arrested owner Daniel Vorcaro as PF and MPF probe alleged fabricated portfolios and falsified documents.
• Internal BC supervision documents cited by O Globo say BRB made accounting entries without documentary support and briefly fell out of Basel compliance after acquiring Master assets, with a reversal demanded by the regulator.
• BRB says it is a creditor in Master’s liquidation and has reinforced controls, notes more than R$80 billion in assets and over R$60 billion in loans, yet has not detailed how the recovered amounts were achieved.