Brazil Takes Over Cruzeiro as ‘Serious’ Violations Found
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Brazil’s central bank took control of Banco Cruzeiro do Sul SA and said it found “serious” financial violations at the payroll lender, 17 months after the bailout of Banco Panamericano SA.
The country’s privately owned deposit insurance fund, known as FGC, will manage Sao Paulo-based Cruzeiro do Sul for 180 days, the central bank said in a statement today. Signs of apparent fraud were found in a 1.3 billion-real ($633 million) portfolio owed by the bank, which is being prepared for sale, said the head of FGC, Antonio Carlos Bueno.