A $10 Billion Bank Collapse Is Now Shaking Brazil’s Election

A Brazilian bank collapse that cost depositors and insurers billions has now reached the country's Supreme Court and presidential election.

Banco Master failed in November 2025 after attracting hundreds of thousands of savers with unusually high returns. Ten months later, allegations around its owner, Daniel Vorcaro, have pulled one of Brazil's most powerful judges into the scandal.

On September 15, the Supreme Court is due to consider whether Justice Alexandre de Moraes should face an investigation over his contacts with Vorcaro. The hearing puts the court in the extraordinary position of examining one of its own members.

Brazil's Biggest Banking Scandal?

Police evidence released this month alleges that the Bank's owner Vorcaro contacted Justice Moraes shortly before his arrest. Moraes' wife's law firm also held a R$130 million contract with Banco Master.

Moraes denies wrongdoing. He has accused Justice André Mendonça, who oversees the investigation, of abusing his authority by releasing the material. The dispute has added a new layer to an already costly banking failure.

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