Brazil Bank to Order Cruzeiro do Sul Intervention, Estado Says

Brazil’s central bank plans to order today the intervention in Banco Cruzeiro do Sul SA, removing the bank’s current management, O Estado de S. Paulo reported, without saying where it obtained the information.

The deposit insurance fund, known as FGC, is likely to take control of the bank, the newspaper said. The Brazilian authority identified 1.3 billion reais ($637 million) in losses in possible frauds similar to those found at Banco Panamericano SA, Estado said.

The talks between Cruzeiro do Sul and Grupo BTG Pactual, which made an offer to acquire the smaller rival, ended on June 2 without an agreement, according to Estado.

To contact the reporter on this story: Telma Marotto in Sao Paulo at tmarotto1@bloomberg.net

To contact the editor responsible for this story: Helder Marinho at hmarinho@bloomberg.net

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