Banco Master Probe in Brazil May Take Up to Six Months

Investigation Timeline Extended

Brazilian prosecutors expect to take four to six months to analyze evidence in the ongoing probe into the liquidated Banco Master. The decision on whether to press criminal charges for alleged fraud, market manipulation, and other crimes is unlikely before the second half of the year.

Scope of the Probe

The investigation involves reviewing bank and tax records of 101 individuals and companies, with courts freezing 5.7 billion reais ($1.06 billion) in assets. The bank's controlling shareholder, Daniel Vorcaro, is among those being investigated, though his lawyers state he is cooperating fully and deny the allegations.

Market and Investor Impact

Although a small player, Banco Master's collapse affects investors awaiting payouts from Brazil's deposit guarantee fund for some 41 billion reais ($7.63 billion) in assets. The case places the country's financial safety net under close watch.

Summary

The lengthy legal process will keep Banco Master in the headlines, with market participants monitoring for updates on potential charges and the efficiency of the investor compensation fund.

FAQ

Q: How long will the Banco Master investigation take?
A: Prosecutors estimate the evidence analysis will take four to six months.

Q: How much investor money is at stake?
A: Investors are awaiting payouts from a deposit guarantee fund for approximately 41 billion reais ($7.63 billion).

Source: Investing.com