Federal probe sought for Banco do Brasil rumors

In its filing, the AGU cited posts with the potential to “foment a true bank run for the withdrawal of funds” and damage Brazil’s economy. The request was sent to the Federal Police last Friday (22) and disclosed on Monday (25). Spreading false information against a financial institution is considered a crime.

“Since August 19, 2025, several social media accounts have been circulating fake news involving agents of the national financial system, especially Banco do Brasil, in reaction to the bank’s institutional stance regarding sanctions imposed by the U.S. Treasury Department through OFAC [Office of Foreign Assets Control], under the so-called Magnitsky Act,” said the AGU’s National Office for the Defense of Democracy (PNDD), which authored the request.

In a letter sent Friday, Banco do Brasil pointed to posts by federal lawmaker Gustavo Gayer (Liberal Party, PL, Goiás) and lawyer Jeffrey Chiquini, who defends Filipe Martins, a former aide to ex-president Jair Bolsonaro (PL). Both urged clients to withdraw their money from banks. The bank also cited a post by Federal Deputy Eduardo Bolsonaro (PL of São Paulo), currently on leave, claiming BB was headed for bankruptcy.

According to the bank’s letter, Bolsonaro supporters have been misusing a section of BB’s own statement to claim it would not enforce Magnitsky sanctions in Brazil, citing the part in which the bank said it would act “in compliance with Brazilian law.”

The AGU said the circulation of messages encouraging depositors to pull their money out was intended to pressure financial agents and generate “chaos” in the National Financial System. “There is a coordinated campaign of mass postings seeking to terrorize society with the imminent prospect of a system-wide collapse,” the filing read.

The PNDD asked for an investigation into the material facts and their authorship, “which may also overlap with criminal probes already under way under the jurisdiction of the Supreme Court.”

In the formal complaint, the AGU specifically mentioned only Mr. Chiquini’s posts. In a statement, the lawyer denied authorship of the post cited and said his remarks concerned stock investments amid growing “legal uncertainty,” which, he argued, makes the market unpredictable. He said his comments merely anticipated a market movement. “My remarks are far from constituting a criminal offense; they are simply an observation of the reality of U.S. law, which has been widely discussed by jurists worldwide. Just read the Magnitsky Act to understand the obvious,” he said.

In response to the bank’s letter, Mr. Gayer’s office said the lawmaker’s comments did not mention any financial institution directly. “Gayer commented on the consequences of Justice Moraes’ statements, which themselves could lead to a collapse in Brazilian banks,” his staff said. Eduardo Bolsonaro did not respond before publication.

Justice Alexandre de Moraes was sanctioned under the Magnitsky Act in July. Earlier this month, Supreme Court Justice Flávio Dino ruled that foreign laws, administrative acts, and executive or judicial orders should not be automatically applied in Brazil. Shortly after, Moraes warned in an interview that Brazilian banks could face punishment if they enforced U.S. sanctions against Brazilian assets.

Banco do Brasil, which manages payroll for Supreme Court staff, canceled at least one U.S.-branded credit card held by Mr. Moraes, Valor revealed last week.

The sharper decline in some blue chips — including Banco do Brasil — weighed on the Ibovespa on Monday. BB shares closed down 2.20%, while the benchmark stock index finished flat, edging up 0.04% to 138,025 points.

Market participants attributed part of BB’s negative performance to the news that the bank had filed its complaint with the AGU, alleging Bolsonarists were trying to sow “chaos” in the system. “What Eduardo [Bolsonaro] has been saying doesn’t help BB, but picking a fight with Bolsonarists isn’t good either,” one trader said, requesting anonymity.

The sell-off comes at a sensitive time for BB shares, which are already under pressure from second-quarter results and uncertainty about how banks will implement Magnitsky sanctions.

Igor Barenboim, chief economist at Reach Capital, said banks understand the risks of failing to comply with Magnitsky sanctions. He added that there has been a surge in legal consultations to assess the scope of the measure. “Large banks are managed very professionally. As difficult as this situation is, they will find a solution that doesn’t harm their business,” he said. “We see only a remote risk of this going wrong, and we believe shareholder value will remain protected,” he added, noting his firm was holding positions in the banking sector.