By Brazil Stock Guide – Federal District Governor Ibaneis Rocha moved to contain turmoil at Banco de Brasília (BRB) after a court ordered the 60-day suspension of president Paulo Henrique Costa. To replace him, the government is expected to appoint Celso Eloi de Souza Cavalhero, a longtime Caixa Econômica Federal executive who currently serves as the bank’s superintendent in Brasília. The move aims to stabilize BRB’s operations as investigations tied to the Compliance Zero operation intensify, focusing on the issuance and trading of fraudulent credit instruments involving BRB and Banco Master.
A rapid shift under judicial pressure
Rocha said the administration has an obligation to maintain “normal service levels” and accelerate internal reviews following the court ruling. In comments to Metrópoles, he underscored the need for BRB to fully brief monetary and supervisory authorities as the investigation advances.
Eloi has been with Caixa since 1990 and currently oversees its Brasília operations. His appointment places an experienced public-sector banker at the center of BRB’s institutional response, at a moment of heightened regulatory scrutiny following the dismantling of Banco Master’s structure earlier in the week.
Governance stress rises at the Brasília state bank
Costa’s suspension adds another layer of uncertainty to BRB’s governance. In March, the bank had announced plans to acquire Banco Master — a deal later vetoed by the Central Bank. As the Compliance Zero operation widens, BRB faces the dual challenge of managing reputational risk while maintaining daily operations under increasing oversight.
BRB’s official statement
In a regulatory notice, BRB said it has always conducted its activities in strict observance of compliance and transparency requirements, regularly providing information to the Federal Prosecutor’s Office and the Central Bank regarding operations involving Banco Master.
The bank added that all services remain fully operational and clarified that no BRB employees were detained on Tuesday morning. According to the statement, the court decision that triggered the Federal Police’s actions determined the temporary 60-day suspension of the president and the chief financial officer.