Vesper
ENESFRTR
Charts
Articles:SportsHealthHistoryTech
South America

Brazil: jailed Banco Master founder Vorcaro fails second plea-deal bid

In Brazil, a second attempt by jailed Banco Master founder Daniel Vorcaro to strike a plea bargain has been rejected after he failed to name accomplices or provide conclusive evidence. The probe is shaping up as one of the country's biggest financial scandals, potentially implicating major figures in the business elite.

Courthouse exterior columns under grey overcast morning sky
Courthouse exterior columns under grey overcast morning skyPhoto: Brett Sayles / Pexels
El País English14 h ago
ShareWhatsAppTelegramLinkedIn

A second attempt by jailed Banco Master founder Daniel Vorcaro to strike a plea bargain with Brazilian prosecutors has been rejected, El País reports. The court ruled that Vorcaro had failed to name accomplices or to provide conclusive evidence regarding the alleged multimillion-dollar fraud. He has been held in jail since March.

Banco Master was a fast-growing mid-tier Brazilian lender known for high-yield deposit products. The Brazilian Central Bank placed it under intervention in November and triggered the country's deposit-insurance fund (FGC) to cover an estimated 14 billion reais (~$2.4 billion) of depositor balances — one of the costliest pay-outs in Brazilian banking history.

The probe is being closely watched because Vorcaro's network is alleged to extend into Brazil's business elite. Federal prosecutors are still insisting that any plea must include naming co-conspirators. The Bovespa banking sub-index has shed about 0.8% since Monday, and credit-default swap spreads on Itaú and Bradesco have widened by roughly 7 basis points.

BankingRegulationM&ASouth AmericaEl País English
Source: El País English
ShareWhatsAppTelegramLinkedIn
This article is an AI-curated summary of the original story published by El País English. The illustration is a stock photo by Brett Sayles from Pexels and is not from the original story.

Read next