Supreme Federal Court suspends BRB contract dispute trial

The Supreme Federal Court (STF) has suspended the judgment regarding a preliminary injunction that extended a contract between the Court of Justice of Bahia (TJ-BA) and Banco de Brasília (BRB) for 90 days.

Justice Gilmar Mendes requested more time for analysis, halting the proceedings in the STF's Second Panel. The case involves a dispute over the administration of judicial deposits, administrative funds, and bail money. After the previous contract ended, the Bahia Court chose to hire Caixa Econômica Federal instead of renewing with BRB.

The Government of the Federal District, the controlling shareholder of BRB, filed a lawsuit to extend the contract, arguing that losing the Bahia contract—which brings in approximately R$ 394 million monthly—could jeopardize the bank's liquidity. This comes as BRB faces financial challenges following significant losses related to the purchase of securities linked to the liquidated Banco Master.