Central Bank Liquidates Banco Master After Fraud Probes, FGC Plans Record Payout

Overview

• The Central Bank ordered the extrajudicial liquidation of Banco Master and parts of its group, triggering Fundo Garantidor de Créditos coverage of about R$41 billion for roughly 1.6 million eligible creditors, capped at R$250,000 per CPF or CNPJ per institution.
• FGC says payments start after the liquidator consolidates creditor data, with a typical turnaround near 30 days via the FGC app, and its president estimates total disbursements could reach up to R$48 billion, roughly 30% of current reserves.
• Federal Police arrested controller Daniel Vorcaro at São Paulo’s Guarulhos airport under Operation Compliance Zero, alleging a scheme that fabricated credit assets and moved roughly R$12 billion while the bank marketed CDBs paying up to 140% of the CDI.
• Judicial records describe at least R$12.2 billion in suspect transfers within R$16.7 billion in flows between Master and public bank BRB, characterized as “pura camaradagem,” as BRB’s president was removed for 60 days and the bank claims it flagged documentation divergences to regulators.
• Rio de Janeiro’s Rioprevidência says pension payments remain secure, reports about R$960 million invested in Master versus a higher TCE-RJ estimate, and notes those letters are not FGC-covered as it negotiates a swap to federal precatórios.