Lula replaces head of public bank, caters to center-right parties

Rita Serrano and President Lula. Photo: Ricardo Stuckert/PR

President Luiz Inácio Lula da Silva on Wednesday fired Rita Serrano from her position as head of Caixa, a federal bank that handles the payments of Brazil’s social security benefits and is the country’s largest by customers.

Ms. Serrano will be replaced by Carlos Antônio Vieira Fernandes, a longtime employee of the bank and former head of Funcef, the pension fund for Caixa employees.

The appointment of Mr. Fernandes was reportedly suggested to Lula by House Speaker Arthur Lira. Negotiations to replace Ms. Serrano to make room for someone appointed by politicians of the “Big Center” (a loose association of center-right parties) reportedly began in July.

In June, Lula carried out a small cabinet reshuffle to accommodate Big Center names in his government. In a September interview, Mr. Lira said that the presidency of Caixa and its 12 vice presidencies were under negotiation between political parties and the federal government.

As president of Caixa, Mr. Fernandes will be able to appoint more of Mr. Lira’s allies to positions in the bank.

A recent art exhibit in Brasília sponsored by Caixa featured a panel showing photos of Mr. Lira, Senator Damares Alves, and former Economy Minister Paulo Guedes in a trash can. Pro-Bolsonaro lawmakers denounced the exhibit as a political use of public funds, prompting the bank to cancel it. According to the local press, the exhibit reportedly irritated both Mr. Lira and Lula.