By Brazil Stock Guide – Paulo Henrique Costa, the chief executive officer (CEO) of Banco de Brasília (BRB), was removed from his post for an initial 60 days as federal investigators deepen a probe into the issuance and trading of allegedly fraudulent credit securities tied to Banco Master. The move follows the arrest of Master’s owner, Daniel Vorcaro, earlier today under Operation Compliance Zero.
Authorities say the investigation points to a scheme involving both institutions, prompting swift action to sideline BRB’s top executive while the case unfolds. Costa has not commented on the allegations, and BRB has yet to issue a formal statement.
The episode adds a new twist to a relationship already under scrutiny. In March, BRB announced plans to acquire Banco Master in a deal presented as a strategic expansion. Months later, the Central Bank blocked the transaction, citing regulatory concerns.
Read more: Banco Master Owner Arrested After Alleged Attempt to Flee Brazil
Brazil Liquidates Banco Master as Federal Police Launch ‘Compliance Zero’ Probe and Arrest Owner
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