SHARE THIS ARTICLE Share Tweet Post Email

Grupo BTG Pactual SA’s clients took 4.2 billion reais ($1.1 billion) out of some of the bank’s most liquid fixed-income funds in the two days following the arrest of controlling shareholder Andre Esteves.

The withdrawals on Nov. 25 and 26, which can be seen in the latest available data on the securities regulator’s website, represent about a third of the combined net assets of the 10 fixed-income funds listed on the bank’s website. Net assets stood at 12.7 billion reais on Nov. 24, the day before the Brazilian billionaire was detained. BTG had 155.6 billion reais in assets under management at the end of October, according to the country’s capital market’s association.

A BTG Pactual official contacted late Friday had no immediate comment about the withdrawals.

Esteves was arrested Nov. 25 on allegations he teamed up with Senator Delcidio Amaral to interfere with the testimony of a former Petroleo Brasileiro SA executive who was jailed in January in the nation’s biggest corruption scandal. Esteves has denied the accusations through his lawyer.

BTG Pactual interim Chief Executive Officer Persio Arida said in a letter to clients on Friday that the bank isn’t under investigation or accused of any wrongdoing and that the company’s financial position is solid. The Financial Times reported Friday that withdrawals at BTG had been smaller than expected, citing an interview with Arida.

BTG’s shares have lost 26 percent since Wednesday. Concerns about BTG Pactual’s funding and liquidity prompted Moody’s Investors Service and Fitch Ratings to say this week that they were reviewing the bank’s credit rating for a possible downgrade.