Banco Master

Brasília's government authorized a $1.2 billion loan to rescue the state bank BRB, which was crippled by purchasing fake loan portfolios from the collapsed Banco Master. The funds come from the banking industry's deposit-guarantee fund.

Ratings agency Fitch downgraded Brazil’s Digimais, warning of a real possibility of failure. The mid-sized lender is controlled by billionaire Edir Macedo, founder of a global Pentecostal church. Its troubles worsened after the collapse of Banco Master, Brazil’s largest bank.

Brazil's federal police are investigating Senator Jaques Wagner, a close ally of President Luiz Inácio Lula da Silva, for suspected corruption and money laundering linked to Banco Master. The probe involves 18 search and seizure orders, including evidence of a luxury apartment purchase. Wagner denies any wrongdoing, and his team claims the funds were legally obtained.

Brazil's Federal Police rejected jailed Banco Master founder Daniel Vorcaro's second plea deal, keeping the country's biggest bank-fraud case unresolved.

A Bahamas court has recognized the liquidator winding up Brazil’s failed Banco Master, allowing the liquidator to pursue assets in the offshore haven. This decision aligns with support from US and Bahamian courts for Brazil’s bank wind-down efforts.

Brazil police are investigating ex-Bolsonaro minister Ciro Nogueira in relation to the Banco Master probe. The investigation is ongoing and details are limited. Nogueira's involvement is a key aspect of the case.

The Brazil Deposit Guarantor is delaying a BRB loan decision due to risks associated with Banco Master. The situation involves a Banco de Brasilia branch in Sao Paulo, highlighting financial uncertainty in the region.