TCU official announces suspension of Central Bank probe in Banco Master scandal at a heated press conference amid protests and political tension.
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TCU Suspends Central Bank Probe in Banco Master Liquidation Case

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In an update to the ongoing Banco Master scandal, the TCU has suspended its inspection of the Central Bank on January 8, following a preliminary review finding no regulatory inaction and amid public pressure. Opposition pushes forward with a CPMI proposal, while controversies persist over judicial ties and aggressive defense tactics.

Building on prior coverage of the Banco Master's extrajudicial liquidation by the Central Bank and the TCU's initial probe ordered by Minister Jhonatan de Jesus, the tribunal suspended the on-site inspection at the BC. Technicians' preliminary analysis, based on sealed BC responses, concluded continuous monitoring since mid-2024 with no inaction. Minister de Jesus, citing the case's 'public dimension' and collegial needs, accepted the BC's embargo challenging competence and referred it to the plenary.

The suspension followed negative repercussions and colleague pressure, as reported by Valor Econômico. Separately, Deputy Carlos Jordy (PL-RJ) secured 229 signatures for a CPMI to probe politico-juridical-financial links in the Master case, including dealings in Rio de Janeiro, Amapá, Bahia, and the Federal District. The effort faces resistance from PT, Psol, PCdoB, and lacks support from figures like Arthur Lira and Mecias de Jesus, father of the TCU rapporteur.

Escalation includes a R$2 million social media campaign by Vorcaro's defense, with 46 profiles posting 4,560 times against the BC on December 27. Reports highlight trails involving Ciro Nogueira and petistas, alongside STF relatives' prosperity: Dias Toffoli's flight with a Master lawyer and a R$129 million bank contract with Alexandre de Moraes' wife's firm, fueling calls for judicial ethics reforms.

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Discussions on X reflect controversy over the TCU's suspension of its Banco Central inspection in the Banco Master liquidation case on January 8. Opposition figures and users criticize perceived interference by TCU minister Jhonatan de Jesus, demanding a CPMI to probe ties to politicians and judicial figures. Supporters of the BC highlight its autonomy and decry attacks as attempts to protect fraudsters linked to PCC funds. Neutral reports note no regulatory inaction found and ongoing public pressure.

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Illustration of Brazilian Congress gaining broad support across parties for CPIs investigating Banco Master scandal, featuring signed requests and deliberating leaders.
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Banco master cpi gains broad support in congress

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Requests to create CPIs to investigate the Banco Master scandal have support from opposition, centrals, and even Lula government allies. There are three requests with sufficient signatures, but installation depends on Congress presidents' decision. The focus includes BRB negotiations and irregularities in investment funds.

Following the STF confrontation between Banco Master's controller Daniel Vorcaro and ex-BRB president Paulo Henrique Costa, the scandal deepens with TCU scrutiny of the Central Bank and new revelations of political ties and massive fraud risks. Experts urge full transparency to restore institutional trust.

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Deputy Carlos Jordy announced that the request for a Joint Parliamentary Inquiry Commission on Banco Master has 205 signatures, exceeding the required 198. Signed by 177 deputies and 28 senators, the document will only be filed in February after the legislative recess. The move comes amid probes into a billion-dollar fraud involving rotten bonds at the bank.

Brazil's Central Bank decreed the liquidation of Will Bank, the digital arm of the Master group, on Wednesday (21) after it failed to meet commitments with the Mastercard network. The move raises costs for the Credit Guarantor Fund (FGC) to around R$ 50 billion, the fund's largest ever. Customers report difficulties accessing funds and paying bills, as STF investigations into bank frauds face ongoing pressure.

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The Central Bank announced the extrajudicial liquidation of Banco Master and related institutions on Tuesday (18), due to a liquidity crisis. The Federal Police arrested owner Daniel Vorcaro and others in Operation Compliance Zero, investigating the issuance of fake credit titles involving BRB. The scheme includes R$ 16.7 billion transfers from BRB to Master, with at least R$ 12.2 billion in fictitious credits.

The Central Bank approved the transfer of control of Banco Voiter to Augusto Lima, an ex-partner of Banco Master, in July 2025, despite suspicions of fraud in credit portfolios already raised by the agency in March of that year. Lima was arrested in November during Operation Compliance Zero for involvement in a fraudulent scheme linked to Bahian associations. The case highlights contradictions in the BC's regulatory analysis amid ongoing investigations.

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The Federal Police carried out the second phase of Operation Compliance Zero on Wednesday (14), with 42 search and seizure warrants against targets linked to Banco Master, including owner Daniel Vorcaro and businessman Nelson Tanure. The operation led to the temporary arrest of Vorcaro's brother-in-law and the seizure of assets worth millions. STF Justice Dias Toffoli, the case rapporteur, criticized the PF for delays but reconsidered decisions on the evidence.

 

 

 

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