The rapporteur analyzing the Banco Master liquidation process at the Federal Audit Court (TCU), minister Jhonatan de Jesus, ordered an inspection of the Central Bank, after considering the technical note on the case forwarded to the Court by the financial market regulatory body insufficient.
According to the president of the TCU, minister Vital Rêgo, authorization for the procedure was formalized within technical work already in progress, which “seeks to clarify the technical-legal and operational foundations of the regulatory body’s actions”.
Minister Jhonatan de Jesus welcomed the representation made by the Federal Public Ministry to the TCU that requests the investigation of possible failures in the supervision exercised by the Central Bank of Brazil over Banco Master SA and its subsidiaries, culminating in the decree of its extrajudicial settlement.
After opening space for the Central Bank’s demonstration, the TCU would have received a technical note from the body explaining the history of the process and the grounds and considerations that led the institution to decide on extrajudicial liquidation. For Jhonatan de Jesus, the document was considered insufficient.
“The Technical Note presented was limited, in essence, to the synthetic exposition of chronology and fundamentals, with reference to internal processes and records, without being accompanied, on this occasion, by the underlying documentary collection (parts, internal notes, opinions and deliberation records) necessary for the objective verification of the assertions contained therein”, highlights in the decision.
According to the order issued by the case’s rapporteur, there is a need to “form conviction” that the decision to extrajudicially liquidate Banco Master was consistent with the findings of irregularity and the associated risks.
Minister de Jesus considers the arguments presented by the Federal Public Ministry that there may have been “omission and insufficient timely reaction to signs of financial degradation of the institution” in the case of Banco Master.
This would have increased the risk to the National Financial System, due to the capillarity of Banco Master and the impacts on creditors, investors and depositors, “with possible significant pressure on the Credit Guarantee Fund (FGC)”.
