Nearly a year after Banco Master was liquidated, retirees affected by its investments and financial products are still struggling to recover their losses. Some have won court recognition of their claims, individually or through pension funds, but turning those rulings into payments remains difficult, according to an opinion article by Rômulo Saraiva.
The article says retirees with deposits of up to R$250,000 covered by Brazil’s Credit Guarantee Fund (FGC) are an exception, as their reimbursement is guaranteed by the financial system. Thousands of others are still waiting, with cases piling up in the courts.
Saraiva describes two ways the bank reached retirees. Banco Master owner Daniel Vorcaro sought access to state-owned companies’ pension funds and to financial products for public employees. The bank also sold products directly to retirees, including the Credcesta credit card and payroll-deducted loans. Thousands of retirees have challenged charges for services they say they did not formally authorize.
Efforts to secure repayment outside the courts have been slow. The Central Bank appointed two liquidators to manage the bank’s liquidation and creditor payments. According to the article, the change in liquidators delayed a meeting of investors in real estate funds managed by Banco Master, holding up efforts to rebuild investment portfolios. Pension entities and public-sector employee pension institutes are among those investors, and creditors remain unlikely to receive payment until this stage is completed.
Court claims also face obstacles: locating Banco Master’s assets and, in some cases, a lack of action by pension fund managers. Saraiva says several pension entities have yet to sue the bank over their losses. Because their investments exceeded the FGC’s R$250,000 limit, they would need to seek the uncovered amounts through the courts to improve the chances of restoring retirees’ collective reserves.
Retirees who have filed individual civil claims are also having trouble finding assets available to satisfy judgments. The article says Vorcaro has significant investments and financial assets abroad, including in tax havens, making them harder to locate for debt repayment.
Sources: Folha Mercado.