Central Bank Opens Internal Probe Into Banco Master Oversight as Toffoli Seeks Forum Ruling for Influencers Case

Overview

• The Central Bank confirmed a confidential sindicância ordered by president Gabriel Galípolo to examine its supervision and the liquidation of Banco Master, with supervision chiefs Belline Santana and Paulo Sérgio Neves de Souza stepping down without formal accusations.
• Federal Police inquiries detail rapid, circular transfers through Reag-linked funds that inflated asset values before money returned to Master; Reag DTVM was ordered into liquidation on January 15.
• STF minister Dias Toffoli asked the PGR to indicate the proper court for the separate probe into alleged paid influencers who sought to discredit the Central Bank, and he issued a note stressing lottery assignment, extended investigative deadlines, and the possibility of remitting cases to lower courts after the inquiry.
• Finance minister Fernando Haddad said Lula met banker Daniel Vorcaro in 2024 before evidence of criminal fraud and told him decisions would be technical and up to the Central Bank, adding that Galípolo inherited what may be the system’s largest banking fraud and triggered institutional responses.
• The Credit Guarantee Fund is disbursing about R$40.6 billion to affected investors, with analysts noting likely shifts toward Treasury securities or large banks that could influence liquidity, public financing costs and the interest-rate outlook.