BTG Pactual under Investigation for Brazil

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The Federal Prosecutor office and the Federal Police served BTG Pactual Bank with a search and seizure warrant yesterday on suspicion that the bank obtained sensitive data on changes in the basic interest rate. The warrant is based on the whistleblower testimony of former PT minister Antonio Palocci. The Copom meeting leaks allegedly occurred between 2010 and 2012. Brazil's central bank holds Copom meetings to determine the country's monetary policy. According to Palocci, the then Finance Minister Guido Mantega informed Andre Esteves, a BTG partner, about the interest rates. He also communicated the the unexpected fall of Selic in August 2011, with Esteves. In exchange, Esteves paid bribes to Mantega and the PT. BTG bank denies wrongdoing.