Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com -- Banco Master SA’s controlling shareholder has agreed to inject 2 billion reais ($364 million) into the company to help secure regulatory approval for a merger with Banco de Brasília SA, according to Bloomberg, citing a person familiar with the matter.
Chief Executive Officer Daniel Vorcaro’s capital increase is part of a plan negotiated between the companies and Brazil’s central bank, said the person, who asked not to be identified because the discussions are private.
The central bank approved the first tranche of 1 billion reais this week, with the second tranche expected to receive approval in the coming days, the person said.
The source indicated that Vorcaro funded part of the capital injection through asset sales made to Banco BTG Pactual SA (BVMF:BPAC11) in May.
The capital infusion appears designed to address regulatory concerns about the proposed merger between Banco Master and Banco de Brasília, commonly known as BRB.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.