Brazilian prosecutors rejected a cooperation agreement proposed by Daniel Vorcaro, former banker at the centre of a massive fraud. The Prosecutor General’s Office said the proposal failed to meet legal thresholds and offered no new evidence or meaningful fund‑return commitment. Federal police had already turned it down twice, and the move signals prosecutors' willingness to press charges without bargaining.

Vorcaro headed Banco Master, liquidated last year after accusations of fraudulent mismanagement and bribery. The collapse followed a central‑bank finding of a large funding shortfall. The scandal totals nearly 52 billion reais (~$9.3bn), labelled the biggest banking fraud in Brazil. The fallout has already prompted a review of risk controls across the sector and rattles the political establishment ahead of this year’s presidential election.

Vorcaro remains in pre‑trial detention since March; his lawyer is silent. Rejection leaves authorities without a deal that could aid recovery of missing funds. Investors watch for further fallout as the case may tighten regulatory scrutiny on Brazilian banks and influence election dynamics. Analysts warn that prolonged litigation could depress bank stocks and deter foreign investment.