Central Bank Liquidates Banco Master as FGC Prepares Record R$41 Billion Payout

Overview

• Federal Police arrested founder Daniel Vorcaro under Operation Compliance Zero on suspicion of fraudulent management and related crimes, with investigators estimating about R$12 billion in bogus credit operations.
• Roughly 1.6 million customers qualify for coverage up to R$250,000 per CPF or CNPJ per institution, with any amount above that becoming a claim in the liquidation without guarantee.
• The FGC will pay eligible claims via its app or corporate portal after the liquidator EFB Regimes Especiais validates the creditor list, and the fund warns of scams and says it charges no fees.
• The payout equals about 30% of the FGC’s roughly R$122 billion in liquid reserves; President Daniel Lima says the fund can honor guarantees, while noting total disbursements could reach R$48 billion if other Master entities are later liquidated.
• Public pension funds report sizable exposures not covered by the FGC, including a dispute over Rioprevidência’s total (R$960 million per the fund versus R$2.6 billion per TCE-RJ), as municipal plans such as São Roque-Prev (R$93.15 million), Araras (R$34 million) and Santo Antônio de Posse (R$8.2 million) assess impacts.