Banco Master

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Dramatic illustration of former BRB president Paulo Henrique Costa's arrest by Federal Police over a R$146 million property bribery scheme.
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Ex-BRB president arrested over R$146 million property bribe

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Federal Police arrested Paulo Henrique Costa, former Banco de Brasília (BRB) president, on Thursday (16) over a bribery scheme tied to Banco Master. This follows earlier investigation revelations, including a note suggesting Costa's efforts to save the bank through credit portfolio purchases amid potential R$5 billion losses for BRB. Costa allegedly received six properties worth R$146.5 million from Daniel Vorcaro to conceal irregularities. The arrest, authorized by STF's André Mendonça, led to transfer to Papuda prison.

CVM superintendent Daniel Valadão stated that the political appointment process for the agency has drastically reduced the board's productivity, with no processes judged in 2026. The remark came during a Supreme Court hearing on Banco Master frauds. The board currently has only two of five seats filled.

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Brazil's Workers' Party (PT) will discuss a political manifesto at its national meeting in Brasília this weekend, proposing milder judiciary reforms. The initial draft referenced 'promiscuity between judges and businessmen', now shifted to 'self-correction mechanisms'. This adjustment comes amid the Banco Master scandal implicating Supreme Federal Court (STF) justices.

Cláudio Hebdô blog on Folha de S.Paulo published a post on March 21, 2026, questioning the governors most involved in the Master case. The author points to Cláudio Castro of Rio de Janeiro and Ibaneis Rocha of the Federal District, noting they receive little attention.

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The STF's Second Panel ruled 4-0 to uphold the preventive detention of Banco Master owner Daniel Vorcaro on Friday (March 20). Justice Gilmar Mendes sided with rapporteur André Mendonça but criticized the reasoning as using 'porous and elastic' terms. The ruling comes amid Operation Compliance Zero probing financial frauds.

The Senate's Economic Affairs Committee canceled on Monday (9/3) the public hearing scheduled for Tuesday with banker Daniel Vorcaro, controller of Banco Master, who is preventively detained in Brasília. The decision comes amid investigations into financial frauds and mentions of STF ministers in data from Vorcaro's cell phone. Minister André Mendonça authorized unrecorded lawyer visits to the detainee.

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Senator Rogério Marinho (PL-RN), a member of the CPMI on INSS, advocated for a specific parliamentary inquiry commission to investigate the Banco Master scandal following new revelations from the breach of Daniel Vorcaro's secrecy. Marinho argues that the case is complex and exceeds the current commission's scope. The presidents of the Senate and Chamber resist opening the CPI.

 

 

 

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