Bloomberg News

Cruzeiro do Sul May Post $1.23 Billion in Losses, Estado Says

July 14, 2012

Losses in Banco Cruzeiro do Sul SA may amount to 2.5 billion reais ($1.23 billion) as an audit found irregularities in the bank’s loan portfolio, O Estado de S.Paulo reported, citing an audit.

Cruzeiro do Sul, which was seized by Brazil’s central bank in June amid “serious financial violations,” didn’t have proper documentation for 1.6 billion reais in loans and overestimated some assets by 900 million reais, the newspaper said, citing the audit report from the central bank, Brazil’s deposit-insurance fund, known as FGC, and PricewaterhouseCoopers LLP.

The central bank, the FGC, PwC and Cruzeiro do Sul declined to comment, O Estado said. Cruzeiro do Sul’s press official told Bloomberg News that she couldn’t immediately comment on the report; the central bank declined to comment.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net.

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net.


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