Brazil’s Central Bank Was Warned for Years of Banco Master Risks

Brazil’s top financial regulator was warned for years that Banco Master SA, which was liquidated this week amid allegations of fraud, was expanding at an alarming pace while holding opaque assets.

The nation’s deposit insurance system, known as FGC, sent multiple warning letters to the central bank, while executives at the biggest lenders in Brazil, which are FGC’s main financial backers, also contacted the monetary authority to express concern, according to people familiar with the matter.

Roberto Campos Neto

Photographer: Ton Molina/Bloomberg

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