BB denies executives left because of scandal

- Tuesday, July 12, 2005

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Brazil's largest bank, federally run Banco do Brasil (BB), has denied that the recent departure of two top executives was due to a scandal rocking the bank.

Last week influential daily Estado de S. Paulo accused BB of lending 20.6mn reais (US$8.8mn) to the governing Workers' Party (PT) without demanding any guarantees of repayment or a co-signer.

The executives who left the bank were retail and distribution VP Edson Monteiro and Luiz Eduardo Franco de Abreu, VP of finance, capital markets and investor relations.

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In the statement BB said that local press reports linking the departures to the loan scandal were "absurd" because the exit of the two executives had been known inside BB for two months and they were based solely on personal reasons.

Opposition lawmakers are now investigating BB's loans to the PT.

BB is the largest bank in Brazil and also in Latin America in terms of overall market share.

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