BRB Shareholders Authorize Suits Against Ex-Managers Over Master Deals

Overview

• BRB shareholders approved the authorization in an extraordinary meeting on Monday, Aug. 24, 2026, allowing the bank to file civil liability suits under Article 159 of corporate law.
• The bank now has 90 days to provide a list of former administrators to sue and to quantify individual damages, and any shareholder holding more than 5% may file the action if BRB does not act.
• BRB says negotiations and purchases linked to Banco Master in 2024–2025 totaled about R$30 billion and that at least R$8.8 billion of acquired credits are nonexistent, fraudulent or hard to recover.
• Federal Police investigations, prompted by Banco Central documents, have alleged a coordinated R$12.2 billion operation, led to the arrest of former BRB president Paulo Henrique Costa, and prompted a 60-day extension request to the STF.
• The Federal District government, BRB’s majority shareholder, voted to pursue liability and says it can recover R$2.2 billion now but would need financing to cover an estimated remaining R$6.6 billion, which could affect public programs and payroll services run through the bank.