Banco Rural Downsizes

Brazil’s Banco Rural, whose loans to the governing Workers’ Party are under investigation by congress, said it will close branches and cut staff to help stem an outflow of deposits. Rural’s announcement was the first time the bank said its finances were hurt by almost three months of congressional investigations into an alleged scheme by President Luiz Inacio Lula da Silva’s Workers’ Party to pay bribes to lawmakers. The bank is Brazil’s 24th-largest.