Brasilia - The possibility of a potential federalization of BRB , directly involved in the Banco Master crisis, is being discussed in the market and is being treated as a thorny issue, generating aversion within Banco do Brasil and Caixa, federal state-owned banks that, in theory, should participate in such a negotiation, should that be the case.
At Banco do Brasil (BB), for example, it's a "non-issue" and a topic avoided in conversations. According to NeoFeed , President Tarciana Medeiros has denied to interlocutors that the matter is on the table or that she has discussed it with the government's economic team.
The bank has maintained discretion regarding the matter and is keeping secret even possible negotiations for the purchase of loan portfolios that have been offered by the BRB president himself, Nelson de Souza. The public bank from Brasília, which is seeking to raise capital after the Federal Police revealed a fraud scheme involving Master estimated at over R$ 12 billion, has already sounded out several private banks.
A source points out that Banco do Brasil (BB) is currently one of the main buyers of payroll loan portfolios in the market, including in negotiations with state and regional institutions, but this possibility has not been discussed within the federal bank. This option would also require approval from the Treasury, which requires guarantees from the states for operations like this, but the fiscal indicators of the Federal District Government (GDF) are also poor.
According to information obtained by NeoFeed , the matter was not discussed among federal banks in general and the government of President Luiz Inácio Lula da Silva (PT). And there is no discussion or decision regarding what is considered one of the most drastic solutions for BRB.
This should also be the line of response that state-owned banks need to send to the Federal Court of Accounts (TCU). On Friday, February 27th, TCU Minister Bruno Dantas gave Banco do Brasil, Caixa Econômica Federal, BNDES, and the Ministry of Finance 15 days to clarify whether there are studies or analyses regarding a possible federalization.
NeoFeed has learned, however, that any questions from the TCU (Brazilian Federal Court of Accounts) involving the disclosure of strategies or commercial data will be avoided by federal banks when responding to these questions.
Dantas responded to a request from the Public Prosecutor's Office to the Court of Accounts. The Deputy Attorney General, Lucas Furtado, requested that the TCU (Federal Court of Accounts) take measures such as: analyzing the technical, legal, and financial feasibility of federalizing BRB; evaluating the fiscal and budgetary impacts on the Union and federal financial institutions; and identifying any potential risks and weaknesses related to the measure.
At Caixa Econômica Federal (a Brazilian state-owned bank), the directive is that the bank, 100% controlled by the federal government, should only make any decisions regarding federalization with the approval of the Ministry of Finance. The president of Caixa, Carlos Antônio Vieira, declared on Thursday, March 5th, that "this conversation is not happening." "Caixa does not have the autonomy to discuss this issue," he stated in an interview with CNN Money .
In agreement with Vieira, the National Treasury Secretary, Rogério Ceron , also reiterated this week that the agency is not discussing the matter, but noted that Caixa continues to monitor the unfolding financial problems related to BRB due to the crisis with Master.
Even the president of BRB himself, Nelson de Souza, has vehemently denied this possibility of federalization. In a meeting with district deputies this week, he also rejected the idea that there is room for privatization, liquidation, or intervention in BRB.
As NeoFeed has been showing, the topic of federalization is a taboo subject even within the upper echelons of BRB, where the top executives of the public bank in the Federal District are categorical in saying that there is no chance whatsoever of federalization happening now.
On Wednesday, March 4th, after much pressure from the opposition and dissenting votes even from allies within the governing coalition, the Legislative Chamber of the Federal District approved a bill submitted by Governor Ibaneis Rocha (MDB), which requests authorization for BRB to take out a loan of R$ 6.6 billion as a capital recovery measure.
For this purpose, nine public properties in Brasília were given as collateral. Now, the priority will be to create a real estate fund with these assets.
