The Brazilian government says it has seized Banco Cruzeiro do Sul after unspecified irregularities were discovered at the Sao Paulo-based bank.
The Central Bank says the Brazilian agency that protects bank customers and their deposits will take over leadership of the bank. Agency head Antonio Carlos Bueno is quoted by the G1 Internet news site as saying the move stems from the discovery of fraud totaling $630 million.
The Central Bank says the seizure is temporary and will not affect the bank's daily operations. Its statement Monday says Banco Cruzeiro do Sul is a small lender and stresses that the bank's obligations will be honored.