Banco do Brasil Battles Misinformation Amid U.S. Sanctions Drama

Banco do Brasil has called on Brazil's solicitor general to take legal measures against misleading allegations suggesting the bank is at risk of U.S. sanctions. This is due to ties with a judge sanctioned under the U.S. Magnitsky Act, according to documents viewed by Reuters on Friday.

The state-owned financial institution emphasized the need for swift action to prevent any "undesirable consequences" as these misleading social media posts, including some by federal lawmakers, could severely impact the National Financial System by inciting panic.

In a strong response, the solicitor general has involved federal police to investigate the spread of this misinformation. Banco do Brasil underscored the severe penalties under Brazilian law for spreading false financial information, seeking to shield its reputation amidst U.S.-Brazil tensions heightened by recent sanctioned actions involving Brazilian entities.