The Economic Times cited Valor Economico newspaper as saying that the losses occurred due to fictitious loans and that the central bank will keep away the Indio da Costa family, controller of Cruzeiro do Sul, from management after the regulator revealed the losses of $637m.
in 2011, Cruzeiro do Sul disposed over $300m of bonds in international markets but that line of approach was shut down due to the prevailing debt crisis afflicting many countries in Europe.
Cruzeiro do Sul reported a first-quarter loss of BRL57m, compared with a profit of BRL32m in the fourth quarter of 2011 and of BRL41m a year earlier.
