Brazil’s Banco Master Collapses: CEO Detained, Regulator Shuts Lender Down
Here’s one that might surprise some New York City voters: it turns out banks don’t seem to prosper under communism. For proof look no further than Brazil where authorities moved Tuesday to shut down Banco Master SA as federal police arrested six people — including CEO Daniel Vorcaro, according to Bloomberg.
The arrests were part of a widening fraud probe. One person said Vorcaro had planned to leave the country that day.
The central bank announced it would liquidate the lender’s assets and appointed an outside administrator, adding that assets belonging to Master’s controllers and former executives were now unavailable. Police said roughly 12 billion reais were frozen and that luxury cars, art, and 1.6 million reais in cash were seized.