Banco Master CEO Arrested as Brazil Regulator to Liquidate Firm

Banco Master SA Chief Executive Officer Daniel Vorcaro was arrested Tuesday in a federal police fraud investigation as Brazil’s central bank moved to liquidate the struggling firm.

The fast-moving sequence of events opened a new chapter in the saga of the financial company’s high-flying ascension and sudden downward spiral. Regulators and competitors have said Banco Master has exposed the need for better oversight and tighter rules.

The Central Bank of Brazil

Photographer: Ton Molina/Bloomberg

Federal police said Tuesday that they arrested six people, without identifying them. A person familiar with the matter confirmed Vorcaro was among the arrests, and another person said he had been planning to ...