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Bradesco to compensate 3 local pension funds amid probe

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Bradesco to compensate 3 local pension funds amid probe

Banco Bradesco SA will pay more than 111 million Brazilian reais to three local pension funds amid an investigation, known as Operation Greenfield, on alleged irregularities in pension funds, Valor Econômico reported.

The bank's payment to Petros, Funcef and Afeam corresponds to the amount invested in the Enseada investment fund, or FIP, from Dec. 31, 2010, to mid-October of this year.

In signing the agreement, Bradesco also reiterated its previous commitment to provide additional clarifications for the investigation whenever needed. The bank is also required to advise its directors, employees and representatives to do the same as well as promote an independent internal investigation to seek information related to the case.

However, the agreement does not remove Bradesco from any criminal or administrative responsibility and it may have to compensate for damages to institutional investors, Brazil's public ministry said.

Bradesco is reportedly being investigated after two of its subsidiaries, BEM Distribuidora de Titulos e Valores Mobiliarios Ltda. and Bradesco Asset Management SA Distribuidora de Títulos e Valores Mobiliários, acted in the administration and management of the FIP Enseada, which had pension funds as quota holders and in which irregularities were allegedly detected.

As of Dec. 18, US$1 was equivalent to 3.28 Brazilian reais.