Brazil’s October election is now colliding with a financial scandal that reaches deep into Brasília, after tax records reviewed by Reuters showed that Banco Master paid millions of reais to politically connected figures while the bank was trying to avoid liquidation. 
Banker Daniel Vorcaro, who was arrested last month on fraud allegations, reportedly oversaw payments to powerful figures across the political spectrum during the period when Banco Master was fighting for survival. Recipients included former President Michel Temer and a former minister under President Luiz Inácio Lula da Silva, both of whom denied wrongdoing.
Reuters said the money trail touched figures across the political spectrum, which makes it harder for any major bloc to dismiss the affair as a purely partisan attack.
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Vorcaro rose from relative obscurity to become a well-connected lender surrounded by senior political and judicial contacts, even without a traditional banking background. Police files described efforts to use influence to shield Banco Master from regulatory pressure, while federal investigations tied him to alleged bribery and intimidation plots.
It was reported in March that two senior central bank officials allegedly provided clandestine regulatory support to Vorcaro in exchange for benefits, though internal reviews suggested the misconduct was limited to individuals rather than the institution as a whole.
Vorcaro has denied wrongdoing.
Banco Master’s collapse in November 2025 cost Brazil’s Credit Guarantee Fund about 40 billion reais, roughly one-third of its resources, according to Reuters.
With elections coming up later this year, that risk is landing as a needle mover with the race so tight. Reuters reported that President Lula’s lead over Senator Flavio Bolsonaro had narrowed, with recent reports describing them in a technical tie in a runoff simulation.
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