The collapse of Banco Master, a mid-sized bank in Brazil, revealed a network of connections involving politicians from different political spectrums and ministers of the Supreme Federal Court (STF), shaking confidence in institutions and highlighting problems of impartiality in the Judiciary and the Brazilian political system
It all began when Daniel Vorcaro took over the leadership of the bank in 2019 and adopted an aggressive growth strategy.
He raised capital by offering certificates of deposit with interest rates well above the market average, which attracted many investors but hid serious liquidity problems.
Vorcaro lived in extravagant luxury: he bought real estate, private jets, a luxury hotel, a football team, and even spent more than US$3 million on his daughter’s 15th birthday party.
The crisis exploded in September 2025, when Vorcaro tried to sell the bank to BRB (Banco de BrasÃlia), controlled by the local government.
The Central Bank investigated the operation and discovered that Master had no real liquidity.
The bank had sold credit portfolios with no real value to BRB for over R$12 billion (equivalent to more than US$2 billion), artificially inflating its numbers.
Vorcaro was arrested while trying to flee to Dubai in a private jet, and in November 2025, the Central Bank decreed extrajudicial liquidation.
The Credit Guarantee Fund (FGC) will have to disburse between R$40 billion and R$50 billion to reimburse depositors-the largest payment in the fund’s history-affecting banks such as Banco do Brasil, Caixa Econômica Federal, and Itaú.
What turned the case into an even bigger scandal was the Federal Police’s access to Vorcaro’s cell phone, revealing contacts and contracts with powerful figures.
The bank signed a US$24 million (approximately R$129 million) consulting contract with the law firm of Minister Alexandre de Moraes’ wife, Viviane Barci de Moraes, with high monthly payments and a vague scope.
Moraes allegedly maintained contact with the president of the Central Bank, Gabriel GalÃpolo, before the liquidation, although he denies any wrongdoing.
Minister Dias Toffoli, the rapporteur for the case at the Supreme Federal Court (STF), placed parts of the investigation under seal, traveled on a private jet with a lawyer linked to the bank, and has relatives with indirect investments in ventures related to Vorcaro’s brother-in-law, Fabiano Zettel.
Toffoli denies any knowledge or involvement.
Politicians from the centrist bloc, such as Senator Ciro Nogueira, attempted to block the investigations in Congress and pressure the Central Bank.
The governor of BrasÃlia, Ibaneis Rocha, defended the purchase by BRB despite the risks.
On the right, Zettel, brother of Vorcaro’s wife, was the largest individual donor to the campaigns of Jair Bolsonaro and TarcÃsio de Freitas in 2022.
Vorcaro also cultivated ties with the current government.
In December 2024, President Lula received Vorcaro at the Palácio do Planalto in a meeting that lasted about an hour and a half, with the presence of Guido Mantega (former Minister of Finance and consultant to the bank, who received R$ 1 million per month), Rui Costa, Alexandre Silveira, and GalÃpolo himself (then nominated for the Central Bank).
This meeting was not on Lula’s official agenda, which generated criticism for lack of transparency.
Furthermore, Banco Master paid R$ 5.25 million (out of a total of R$ 6.5 million) to Ricardo Lewandowski’s law firm after he assumed the position of Minister of Justice and Public Security in January 2024. The previously signed contract remained in effect, with monthly payments of R$ 250,000 for strategic legal and institutional consulting, even though Lewandowski left the firm’s partnership upon assuming the position and claims not to have worked on any cases.
These revelations reinforce the perception that the financial, political, and judicial elites are worryingly interconnected, with attempts to protect the bank before its collapse and questions about conflicts of interest before the Supreme Federal Court (STF).
The president of the STF, Edson Fachin, proposed a more rigorous code of ethics, but the idea was rejected by his colleagues.
The case exposes weaknesses in the system and puts pressure on greater autonomy for the Central Bank and transparency in power relations in BrasÃlia.
Published in 01/28/2026 11h25
Text adapted by AI (Grok) and translated via Google API in the English version. Images from public image libraries or credits in the caption.
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