Cruzeiro do Sul May Post $1.23 Billion in Losses, Estado Says

Losses in Banco Cruzeiro do Sul SA may amount to 2.5 billion reais ($1.23 billion) as an audit found irregularities in the bank’s loan portfolio, O Estado de S.Paulo reported, citing an audit.

Cruzeiro do Sul, which was seized by Brazil’s central bank in June amid “serious financial violations,” didn’t have proper documentation for 1.6 billion reais in loans and overestimated some assets by 900 million reais, the newspaper said, citing the audit report from the central bank, Brazil’s deposit-insurance fund, known as FGC, and PricewaterhouseCoopers LLP.