Brazil Senate committee to hear Vorcaro on March 10: CNN Brasil

Brazil Senate committee to hear Vorcaro on March 10: CNN Brasil

Brazil Senate Committee to Hear Banco Master Executive Daniel Vorcaro on March 10

The Brazilian Senate committee investigating the collapse of Banco Master will hear testimony from Daniel Vorcaro, the bank's former interim president, on March 10, according to CNN Brasil. Vorcaro is a central figure in the ongoing probe into the financial institution's $12.2 billion unsecured credit portfolios, which are under scrutiny for alleged irregularities and liquidity mismanagement according to reports.

The Banco Master case has become a focal point of Brazil's political and financial landscape, with the Central Bank liquidating the bank in November 2025 amid severe financial deterioration and regulatory violations as reported. Vorcaro's testimony will address the origin of credit portfolios sold to Banco do Brasil (BRB), which he claimed were sourced from third-party originators, not Banco Master itself. This contradicts BRB's assertion that the portfolios appeared to lack proper documentation, raising questions about due diligence and risk management according to a report.

The hearing follows revelations that Supreme Court Justice Dias Toffoli, who oversees the Banco Master investigation, denied receiving payments or having a close relationship with Vorcaro, despite Federal Police data suggesting otherwise as stated. Toffoli's continued involvement in the case has drawn scrutiny, with critics questioning potential conflicts of interest.

The scandal has broader implications for Brazil's fiscal stability. Banco Master's collapse triggered a $40.6 billion burden on the Credit Guarantee Fund (FGC), exacerbating strains on the banking sector. Meanwhile, Banco do Brasil reported a 45.4% drop in 2025 profits, partly attributed to rising agribusiness defaults according to analysis.

Political tensions also escalate as President Lula's administration faces electoral pressures. The Senate inquiry coincides with a polarized electoral calendar, where ministers may resign to run for office, and fiscal reforms remain stalled. Analysts warn that unresolved legal and political risks could heighten market volatility, despite short-term gains in equities and foreign investment inflows as noted.

The March 10 hearing is expected to clarify accountability for the Banco Master crisis, with implications for regulatory oversight and investor confidence in Brazil's financial system.