BM&FBovespa condemned for the 1999 Real crisis.
Company led by Edemir Pinto accused of administrative misconduct and causing damage to public funds, in a case concerning the massive devaluation of the currency.
247 with agencies - BM&FBovespa was convicted on Tuesday in a first-instance court decision in a lawsuit involving the massive devaluation of the real in January 1999, in which it is accused of administrative misconduct and causing damage to public funds. The information is from Reuters.
The total amount of the judgment is R$ 8,423 billion, but the institution could deduct R$ 5,431 billion from this amount as compensation from the Central Bank.
The company, headed by Edemir Pinto, stated in a press release that, based on the opinion of its lawyers, it continues to believe that these lawsuits that led to the conviction are unfounded. Therefore, it will not provision any amount related to these lawsuits, because it considers the risk of losing its defense to be remote.
The misguided bets made by Marka and FonteCindam banks in the dollar futures market, betting on the stability of the real while other financial institutions prepared for a rise in the dollar, rendered both insolvent.
At the time, the Central Bank's board carried out operations with dollar futures contracts at prices different from the quotation of the then BM&F (Brazilian Mercantile and Futures Exchange), with the objective of limiting losses from dollar futures purchase contracts and avoiding a serious risk of loss of confidence.