Brazil’s Wave of Corporate Meltdowns Share One Commonality
Banco Master becomes banco buster.
Photographer: Victor Moriyama/Bloomberg via Getty Images
As financial scandals go, this one has it all: a flamboyant, politically connected executive taking on Brazil’s financial titans with a fast-growing bank built on aggressive tactics and exotic financial engineering; a spectacular collapse amid billion-dollar fraud allegations; and an airport arrest just as the businessman was about to leave the country on his private jet. Call Netflix immediately!
The downfall of Daniel Vorcaro and his Banco Master is now rippling across Brazil’s business and banking circles, the latest major corporate implosion to shake Latin America’s largest economy. And for good reason: The bank’s liquidation has prompted the biggest intervention in the history of Brazil’s financial markets.