Extrajudicial Liquidation of Banco Master: Impacts for Investors, According to Carlos Portugal Gouvêa

The extrajudicial liquidation of Banco Master has generated significant repercussions in the Brazilian financial market, especially among the institution’s investors. In a report published by Capital Aberto, PG Law partner Carlos Portugal Gouvêa analyzed the implications of the measure announced by the Central Bank on November 18.

The extrajudicial liquidation process was initiated following developments from Operation Compliance Zero, which resulted in the arrest of the bank’s owner, Daniel Vorcaro. With the Central Bank’s decision to open the proceeding, an investigative phase begins—one that may last for months or even years, depending on the complexity of the facts and outstanding obligations.

According to Carlos Portugal Gouvêa, the extrajudicial liquidation of Banco Master has immediate and far-reaching effects. He emphasizes that the measure “immediately halts the bank’s operations and freezes all payments,” indicating the monetary authority’s assessment that the institution’s solvency is beyond recovery.

With the decree of liquidation, all clients and creditors become part of the so-called massa liquidanda, meaning they are prevented from receiving any payments directly from the bank—except within the limits guaranteed by the Brazilian Deposit Guarantee Fund (FGC). “From the moment the decree is issued, no one receives anything from the bank except through the FGC. Everyone becomes a creditor of the liquidation estate, and the guiding principle becomes preserving what remains of the assets,” explains Gouvêa.

This context highlights the importance of understanding how the FGC operates and what protection mechanisms are available to investors in cases of intervention or liquidation. The extrajudicial liquidation of Banco Master also reignites broader discussions on governance, compliance, and supervisory practices within the financial system.

For more details on the case and its potential impacts on the market and investors, you can access the full report at the link below:
https://capitalaberto.com.br/gestao/investidores-do-master-terao-longo-processo-para-recebimento/