Shareholders of BRB (Banco de Brasília) have authorized the filing of civil liability lawsuits against former administrators of the financial institution over losses tied to operations connected to the Banco Master case and Reag Investimentos.
The decision was approved at an Extraordinary General Meeting held on Monday. BRB said the measure is an essential procedural step to allow the Federal Police and other investigative bodies to continue their inquiries into responsibility for the losses.
BRB said in a statement that the measure reinforced the bank's commitment to transparency, governance and the defense of shareholders' interests, with the goal of eventual reimbursement for damages to the institution's assets.
Former president jailed since April
BRB's former president, Paulo Henrique Costa, has been held in pretrial detention since April 16. He is under investigation by the Federal Police for allegedly negotiating the receipt of 140 million reais in luxury real estate as a bribe to enable BRB's purchase of Banco Master.
BRB estimates that the financial fraud scheme involving Banco Master could total as much as 12 billion reais. The regional financial institution has not yet released its balance sheet for the 2025 fiscal year, even though the deadline to do so ended on March 31.
Loan talks with S1 banks
The Federal District government is negotiating a 6.6 billion reais loan with a pool of S1-rated banks to help capitalize Banco de Brasília. The district government has faced difficulties closing that deal.
BRB said all decisions related to its investment portfolio followed technical and regulatory criteria and protected the interests of its shareholders and stakeholders, always in line with capital markets rules.
Background
BRB is the state-controlled bank of Brazil's Federal District, the administrative region that includes the capital, Brasília. The Federal Police continue to investigate the alleged fraud scheme surrounding Banco Master and BRB's acquisition of the lender.
