Brazil police open probe into potential fraudulent management at lender BRB, sources say

About this update from Brb Banco De Brasilia Sa

Brazil's federal police have opened an investigation into potential fraudulent management at state-run lender BRB BMFBOVESPA:BSLI3, two sources familiar with the matter told Reuters on Tuesday.The probe deepens scrutiny of BRB following its failed attempt to acquire Banco Master, a deal blocked by the central bank in September. The central bank later ordered Master's liquidation in November amid a liquidity crisis, and BRB executives were removed from their posts.In a statement on Tuesday, BRB said it had submitted a preliminary audit report with "relevant findings" to the federal police and the central bank.The lender added that it has taken a range of institutional, administrative, extrajudicial and legal measures to protect its interests, recover credits and assets, and seek compensation for losses.

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