Brazil’s Central Bank Faces Court Scrutiny Over Bank Liquidation

Key Highlights

• The central bank found evidence suggesting attempted fraud in the proposed sale of Master to Banco de Brasilia SA, an institution owned by the Federal District government.
• The findings were forwarded to the federal police and the federal public prosecutor’s office, which sought the arrest of Vorcaro and other executives on Nov.
• 17.
• It is the first time a decision falling under the central bank’s exclusive jurisdiction has come under scrutiny by Brazil’s highest courts, underscoring the challenges policymakers face in navigating Brasilia’s web of political connections — terrain that Vorcaro has long been adept at exploiting.
• The central bank didn’t respond to a request for comment.