TCU Signals Support for Central Bank in Banco Master Liquidation Ahead of Monday Meeting

Overview

• A confidential preliminary analysis by TCU auditors found no inaction by the Central Bank in the Master case and stated the court lacks authority to overturn a legally grounded liquidation, according to Valor Econômico.
• TCU president Vital do Rêgo said the Central Bank was correct to liquidate Master, with an inspection now suspended for plenary review and a meeting with BC president Gabriel Galípolo set for Jan. 12.
• BC material sent to federal prosecutors alleges roughly R$11.5 billion in suspect flows using Reag-managed funds, including four funds under probe for links to organized crime, with patterns of rapid fund transfers and inflated asset valuations.
• Investigators cite examples such as a R$459 million loan that cycled through Reag funds and the FIDC High Tower’s revaluation to R$10.8 billion, while Reag says the movements reflect structured credit tied to project milestones.
• The Federal Police is probing alleged paid campaigns to discredit the BC; a councilman detailed a proposal naming Daniel Vorcaro as sponsor, media figure Luiz Bacci posted videos criticizing the BC, and Vorcaro denied hiring influencers in a filing to the Supreme Court.