BRB Says It Liquidated or Substituted Over R$10 Billion From Disputed Master Deals

Overview

• From R$12.76 billion flagged in Master-linked portfolios, BRB reports more than R$10 billion already liquidated or replaced, with the remainder not a direct exposure to Master.
• BRB says portfolio substitutions and added guarantees were executed under contractual terms and accompanied by Central Bank supervision.
• The bank asserts solvency, citing over R$80 billion in assets, more than R$60 billion in its credit book, and R$518 million in recurring net profit in the first half.
• Internal supervision materials reported by the press say BRB made accounting entries without documentary backing to meet regulatory requirements after buying Master assets, affecting capital ratios earlier this year.
• Banco Master remains under extrajudicial liquidation as its owner Daniel Vorcaro faces investigation, while BRB acts as a creditor and undergoes leadership changes following executive removals.