BRB tried to overturn recommendation against the acquisition of Master made to the Central Bank
The former president of BRB sought to appeal a recommendation to the Central Bank that aimed to prevent the bank's acquisition of Master due to allegations of fraud and manipulation.
Paulo Henrique Costa, the former president of BRB (Banco de BrasΓlia), along with the bank's former legal director, Jacques Veloso de Melo, attempted to persuade the Federal Public Ministry (MPF) to reconsider a recommendation issued to the Central Bank of Brazil (BC) that sought to block the acquisition of the Master bank by BRB. Their efforts were aimed at securing the acquisition of the majority stake in Master, which is a state-controlled bank under the government of the Federal District.
At the time of their request, the MPF had raised serious concerns regarding fraudulent activities, price manipulations, and fictitious operations associated with the bank operated by Daniel Vorcaro, which included uncertainties around the existence of assets. This recommendation, marked as confidential and dated August 20, 2025, adds a layer of complexity to the proceedings and raises ethical and legal questions regarding the conduct of BRB's leadership during the acquisition process.
Attempts to reach out for comments from BRB's advisory team and the defense representatives of Costa and Melo were unsuccessful prior to the publication of the report, highlighting a potential communication gap in the midst of these serious accusations. The implications of this situation could affect both the future operations of BRB and public trust in government-controlled financial institutions in Brazil.