BRASILIA Aug 2 Brazil's central bank on Friday
declared the liquidation of Banco Rural SA due to its poor
financial situation and lack of viable plan to rescue the
Senior managers of Banco Rural last year were found guilty
of fraud and money-laundering in a vote-buying scandal that
turned into the biggest corruption case in Brazilian history.
Banco Rural had 0.07 percent of the assets and 0.13 percent
of the deposits of the Brazilian financial system, the central
bank said in a statement.
The central bank said it is investigating the causes of the
bank failure and could seek punitive measures against any
executives found responsible. The monetary authority also said
it has frozen the assets of the controlling shareholders and
former managers of Banco Rural.
Brazil's supreme court last year convicted 25 people, many
of them close associates of former President Luiz Inacio Lula da
Silva, for diverting at least $35 million in public money to
bribe legislators to support his minority government after it
took office in 2003.