TCU minister seeks clarification from BC on Master’s liquidation as it prepares for legal battle

The decision was taken as a precautionary measure by the minister, as part of the investigation process into a possible omission of the BC in the operations of Banco Master.

Behind the scenes, the BC was already awaiting decisions in this direction from the judiciary and organizations such as the TCU. As this is a delicate case, the directors and technicians of the monetary authority involved in the settlement have documented all the processes.

These documents will be used by the Central Bank in what is expected to turn into a legal battle. According to the managers involved, judicialization has already taken place in other liquidation cases, with a history favorable to banks in these processes.

In this Friday’s decision, Minister Jhonatan de Jesus determines that British Columbia must provide documents on:

• technical and legal foundations of the extrajudicial liquidation decree of November 18, 2025, indicating the main stages of the decision-making process.
• analysis of less restrictive alternatives provided for by law, such as market solutions or reorganization, and the reasons for their adoption or rejection.
• schedule of negotiations ahead of settlement, including private proposals, FGC participation and a possible acquisition offer close to decision.
• possible divergences between internal technical areas and how these positions were handled within the Central Bank’s governance structure.
• indications on how British Columbia will make documents available for analysis of the file within the framework of legal privilege.

This Thursday, the TCU decided to impose secrecy on the process. Parts that could previously be viewed – including decisions already published – have been removed from the system, leaving only procedural movements. The court said the case was classified as reserved because it contained banking data protected by tax secrecy.

At the beginning of December, the Minister of the Federal Court (STF), Dias Toffoli, ordered the secrecy of the investigations involving the banker and the institution. A day later, Toffoli decided that the STF would take over the case, withdrawing the investigation from the Federal District Court.

Shortly after, the minister ordered the deletion, from the INSS CPMI, of data from Vorcaro’s cell phone, the secrecy of which had been broken. In November, the businessman was arrested by the São Paulo Federal Police as part of Operation Compliance Zero, which is investigating the issuance of fake credit securities by institutions that are part of the national financial system. Eleven days later, TRF-1 granted the banker freedom by requiring the use of an electronic ankle bracelet.

The PF investigations began in 2024, following a request from the Federal Public Prosecutor’s Office to investigate the alleged creation of unsecured credit portfolios. According to the police, these securities had been sold to another financial institution and subsequently replaced with assets without adequate technical evaluation after inspection by the Central Bank. Among the crimes investigated are fraudulent management, reckless management and criminal organization.

In response to Minister TCU’s decision, the Brazilian Federation of Banks (Febraban) defended the Central Bank.

“The Brazilian Federation of Banks (Febraban) has full confidence in the decisions of the Central Bank, in all its areas of activity: from the point of view of regulation, supervision, monetary policy and exchange rate policy. It is essential to guarantee the institutional independence and authority of the Central Bank,” writes the institution.

The Brazilian Association of Banks (ABBC) highlighted the importance of BC supervision for the financial system.