Former head of Banco Santos arrested

The former head of Brazil’s Banco Santos, Edemar Cid Ferreira, has been arrested on suspicion of committing fraud while managing the bank.

Mr Ferreira was arrested at his mansion located in Sao Paulo’s wealthy Morumbi area, Federal Police said.

Creditors who invested in banks owned or connected to Mr Ferreira have seen losses approaching $1bn (£685m).

Mr Ferreira and 19 others have already been indicted for illegal activities such as money laundering.

The Central Bank of Brazil has said that of the total losses to creditors, about $230m was lost in Brazil, and a further $700 from two offshore banks.

Police seized numerous artworks earlier from the home of Mr Ferreira, an avid art collector.

Banco Santos, which Mr Ferreira started in 1989, was taken over in November 2004 by the Central Bank, before being declared bankrupt last September.