Brazil's BRB pursues R$8.8 bn bailout after Master bank scandal

Nelson Antônio de Souza, president of Banco de Brasília (BRK), told a Senate economic committee that he does not know how many times Daniel Vorcaro, the owner of Banco Master, visited the BRB headquarters. He confirmed that a group linked to Vorcaró had controlled 23.5% of BRB’s shares, which were later seized by a court order.

Investigations revealed that transactions between BRB and Banco Master moved roughly R$30 bn between 2024‑2025, including about R$12 bn of low‑recoverability loan portfolios. The fallout left the state‑owned bank with an estimated loss of R$8.8 bn. To avoid intervention by the Central Bank, the Federal District government is preparing a capital‑raising package of R$8.8 bn: a R$6.6 bn loan from the Fundo Garantidor de Créditos (FGC) and R$2.2 bn obtained by securitising the district’s debt. The infusion is intended to bring BRB back into compliance with regulatory capital ratios. The plan has been approved by the Supreme Court, though senators raised concerns about the lack of a published 2025 financial statement.