Panamericano Accounting Loss Hits 4.3 Billion Reais

Banco Panamericano SA, the Brazilian lender under investigation for alleged fraud, said its loss from “significant accounting distortions” reached 4.3 billion reais ($2.6 billion), exceeding its initial 2.5 billion-real estimate.

The bank was bailed out in November and January with a total of 3.8 billion reais from Brazil’s deposit insurance fund, FGC, via the bank’s controlling shareholder Grupo Silvio Santos, the Sao Paulo-based lender said in a regulatory filing today. The bank covered the remaining loss by activating a tax credit of 700 million reais. The 200 million reais difference was used by Panamericano Administradora de Cartoes de Credito, the bank’s credit-card company, according to the filing.