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Control of Brazil's Banco Original shifts hands

The control of Brazil's Banco Original SA has been transferred from scandal-hit J&F Investimentos S.A., run by brothers Joesley and Wesley Batista, to their father José Batista Sobrinho, and elder brother José Batista Junior in a central bank-approved operation at the end of last year, Valor Econômico reported.

The move, which bank executives reportedly recommended to 'isolate' it from the crisis surrounding Joesley and Wesley, leaves their father and their elder brother with 51% of the bank, while J&F now holds 49%, down from 100%.

Banco Original CFO Carlos André da Silva reportedly told Valor Econômico that even though the bank always maintained "independence from its owners," that did not prevent the bank from suffering an image crisis.

A contingency plan is now focused on resolving the image crisis especially on mainstream and on social media, the executive told the publication.

J&F Investimentos also owns the scandal-plagued meatpacking company JBS SA. The Batista brothers have confessed to paying out around $220 million in bribes that were used as campaign donations to Brazil's past and present presidents.

In December 2017, Fitch Ratings downgraded Banco Original and maintained its ratings on Negative Watch due to lower but still possible risks of contagion from events surrounding the meatpacker.