Brazil Restricts Pension Funds After Bank Failure
New regulations limit most public pension funds to sovereign bonds after losses at Banco Master. Only 8 percent of funds currently meet the strict standards.
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The fallout from the collapse of Banco Master has triggered a sweeping regulatory crackdown in Brazil, as policymakers move to shackle the investment capabilities of public pension funds. The liquidation of the mid-sized lender, once a significant creditor for various state and municipal retirement schemes, has prompted authorities to impose strict new limits on where these funds can allocate their $73 billion in assets.
