District Federal Governor Celina Leão said on April 21 that a new investment fund set up by Banco de Brasília, or BRB, is meant to recover money tied to the bank’s troubled dealings with Banco Master, in what has become one of the capital’s biggest financial and political crises in years.
Speaking in Brasília, Leão said the structure would help bring back resources that had been at risk in the transactions. According to her account, the arrangement already includes about R$4 billion in upfront cash and another R$11 billion in subordinated shares linked to the fund, with proceeds expected to return to BRB as the assets are monetized.
BRB said it signed the agreement with Quadra Capital at a reference value of R$15 billion. Under the memorandum of understanding, roughly R$3 billion to R$4 billion would be paid immediately, while the remaining amount, up to R$12 billion, would be settled through subordinated fund units created to manage and sell the assets. The bank said the deal was approved by its board and is intended to strengthen capital, improve liquidity and streamline the balance sheet.
The transaction is part of an attempt by BRB’s new management to contain the fallout from its exposure to Banco Master. The state-controlled bank has also been seeking a R$6.6 billion loan package involving Brazil’s deposit insurance fund, the Fundo Garantidor de Créditos, and a bank consortium, according to Metrópoles.
The broader backdrop is a scandal involving Banco Master and BRB that has shaken politics in the Federal District. CNN Brasil reported that investigators are examining allegedly fraudulent financial operations linked to Master, with BRB under pressure after the identification of about R$12 billion in suspected fraudulent credit operations. The former BRB president, Paulo Henrique Costa, was arrested last week in a Federal Police investigation into the case.
Leão, who took office as governor on March 30, has tried to frame the BRB turmoil as a contained episode rather than a structural threat to the bank. She has also rejected the idea of privatizing BRB. In comments to CNN Brasil, she further accused the federal government of isolating the lender, saying state-linked banks such as Caixa Econômica Federal and Banco do Brasil were not doing business with BRB even as private banks continued negotiations.
The crisis has spilled into the public administration’s fiscal and political choices. Brasília marked its 66th anniversary on April 21 without the traditional celebrations usually funded by the local government. Leão canceled R$25 million in planned spending for concerts and festivities and said the money was redirected to hire 130 temporary doctors for primary care in family and community medicine, with an additional reserve list for the public health system.
That decision contrasted with last year’s anniversary celebrations, which lasted three days and had a reported budget of R$15 million, partly backed by BRB itself. This year, Leão argued that essential public services should take priority over non-mandatory spending such as festivals.
For now, the BRB-Quadra deal offers the local government a chance to argue that part of the financial damage can still be contained. But the transaction remains subject to conditions in the memorandum, and its success will depend on whether the underlying assets can in fact be sold at values close to those now being advertised.
Sources: Metrópoles; CNN Brasil.
Fonts: https://www.metropoles.com/distrito-federal/recursos-voltam-ao-brb-diz-celina-sobre-acordo-que-cria-fundo https://www.cnnbrasil.com.br/politica/em-meio-a-crise-com-brb-e-master-brasilia-completa-66-anos-sem-festa/
accessed on 21 April 2026