Brazil Bank Gets $1.5 Billion Loan in Possible Fraud Case

A Brazilian bank is getting a $1.5 billion emergency loan from the government to cover what local newspapers say is fraud.

Banco Panamericano - Brazil's 21st largest bank - says in a statement that "accounting inconsistencies" led it to seek an injection of capital from its principal shareholder, Grupo Silvio Santos.

Grupo Silvio Santos then got the emergency loan from the government's deposit insurance fund.

The newspaper Estado de S. Paulo said late Tuesday that the bank's former directors - fired Monday - committed unspecified fraud to improve the appearance of the bank's financial health.

The newspaper cited no sources.

The report came out after the bank closed for the day and calls to the bank seeking comment rang unanswered.