BTG Pactual, one of Brazil’s leading investment banks, and the J&F group, controlled by brothers Joesley and Wesley Batista, approached Brazil’s central bank in October 2025 seeking a comfort letter to facilitate the purchase of assets from Banco Master, according to testimony given by Banco Central’s director of fiscalization, Ailton de Aquino, to the Federal Police.
A comfort letter is not a formal authorization but a document intended to provide reassurance that a regulator does not object to a transaction, thereby reducing the risk that the deal could later be challenged as irregular if the seller entered liquidation. Aquino told investigators that BTG wanted to avoid the possibility that its purchase of Master assets would be questioned as a fraudulent conveyance should Banco Master be liquidated.
The J&F group had previously requested a similar comfort letter for its acquisition of Korv Seguradora, the insurance arm of the Master conglomerate, which it ultimately bought through the fintech platform PicPay. Aquino said that after receiving J&F’s request, the then‑director of fiscalization, Paulo Sérgio Souza — who is now under investigation for allegedly helping Master manipulate data — consulted the central bank’s technical area about issuing a comparable document to BTG.
At the time, Banco Master’s financial condition was deteriorating. Its controlling shareholder, Daniel Vorcaro, was attempting to divest assets to raise liquidity. Both BTG and J&F expressed interest in acquiring parts of the bank’s portfolio. Aquino stated that BTG went on to acquire various assets from Master in transactions that, at that point, totaled about R billion (roughly USD 200 million at recent rates). He added that the October 2025 request would have been BTG’s second operation involving Master assets.
Banco Master was placed into extrajudicial liquidation by the Banco Central on 18 November 2025, halting its operations and placing remaining businesses under a liquidation regime. The liquidation occurred on the same day that Vorcaro was arrested for the first time by the Federal Police. Vorcaro has since become a central figure in police investigations, accused of orchestrating the sale of false credit‑card portfolios to the state‑owned Bank of Brasília (BRB) and of diverting more than R0 billion (approximately USD 1 billion) in Master’s CDBs (bank deposit certificates) to personal and family accounts.
Prior to the liquidation, the central bank had monitored Master’s worsening situation for months. The bank had negotiated a potential merger with BRB, but the deal was blocked because it required central bank authorization, which was not granted. Aquino’s testimony indicates that as Master sought alternatives to raise funds and reduce exposure to certain assets, interest from buyers such as BTG and J&F emerged.
Both BTG Pactual and the J&F group declined to comment when approached by Folha de S.Paulo. The Banco Central also did not provide a statement.
Contextual notes
- BTG Pactual: BTG Pactual is a Brazilian investment bank offering services in wealth management, corporate banking, and capital markets.
- J&F Group: J&F is a privately held conglomerate controlled by brothers Joesley and Wesley Batista, with holdings in food processing, energy, and finance.
- Banco Master: Banco Master was a mid‑size Brazilian bank that was liquidated by the central bank in November 2025 amid allegations of fraud and insolvency.
- BRB: The Bank of Brasília (BRB) is a state‑owned financial institution serving the Federal District.
- Korv Seguradora: Korv Seguradora was the insurance subsidiary of the Master conglomerate.
- PicPay: PicPay is a Brazilian fintech company that provides digital payment services.
- STF: The Supreme Federal Court (STF) is Brazil’s highest judicial body.
- PF: The Federal Police (PF) is Brazil’s federal law‑enforcement agency.
- BC: The Banco Central (BC) is Brazil’s central bank, responsible for monetary policy and financial system stability.
- Comfort letter: In banking regulation, a comfort letter is a communication from a regulator indicating no objection to a transaction, but it does not constitute formal approval.
- CDBs: Certificados de Depósito Bancário (CDBs) are bank‑issued fixed‑income securities popular with retail investors in Brazil.