Brazil Regulator Liquidates Bank With Ties to Banco Master (1)

Brazil’s central bank liquidated Banco Pleno SA, a company with ties to the failed lender Banco Master SA that is the focus of an on-going fraud investigation in Latin America’s largest economy.

Pleno had a “deteriorated liquidity situation” and violated central bank decisions, the regulator said Wednesday in a statement. It also liquidated Pleno Distribuidora de Títulos e Valores Mobiliários SA, another company from the conglomerate.

Pleno had 0.04% of Brazil’s financial system assets, the central bank said. Assets from controlling shareholders and management were blocked.

A pedestrian passes in front of the Central Bank of Brazil in Brasilia, Brazil

Photographer: Gustavo Minas/Bloomberg

It’s the latest in the fallout from the probe into Banco Master, ...