Fri Aug 2, 2013 6:46pm EDT
BRASILIA Aug 2 (Reuters) - Brazil's central bank on Friday declared the liquidation of Banco Rural SA due to its poor financial situation and lack of viable plan to rescue the institution.
Senior managers of Banco Rural last year were found guilty of fraud and money-laundering in a vote-buying scandal that turned into the biggest corruption case in Brazilian history.
Banco Rural had 0.07 percent of the assets and 0.13 percent of the deposits of the Brazilian financial system, the central bank said in a statement.
The central bank said it is investigating the causes of the bank failure and could seek punitive measures against any executives found responsible. The monetary authority also said it has frozen the assets of the controlling shareholders and former managers of Banco Rural.
Brazil's supreme court last year convicted 25 people, many of them close associates of former President Luiz Inacio Lula da Silva, for diverting at least $35 million in public money to bribe legislators to support his minority government after it took office in 2003.
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