Brazil Is Not Prepared for the Whole Truth

After Christmas, the Banco Master case grew into a mega scandal. A minister even stated that “Brazil is not prepared to know the whole truth,” suggesting that many facts remain hidden. Thus, the perception is growing that this episode is not only about a bank, but about the limits between power, money, and institutions.

The R$ 12 Billion Hole

The Central Bank, through technical oversight, discovered the hole of more than R$ 12 billion at Banco Master. Consequently, it blocked the operation and liquidated the institution, protecting the financial system. However, the regulator soon became treated as a target, summoned for unfounded hearings, in a move that drew criticism from jurists and experts.

The Million-Real Contract and the Phone Calls

The most sensitive point is the R$ 129 million contract between Banco Master and the law firm of Alexandre de Moraes’s wife. Curiously, the contract foresaw action before the Central Bank, but was never formally fulfilled. On the other hand, reports revealed that Moraes allegedly called Central Bank President Gabriel Galípolo six times to defend the operation — a fact denied by the minister.

Pressure on Institutions

Moreover, reports indicate that not only the Central Bank but also the Federal Police faced pressure. Director Andrei Rodrigues allegedly informed President Lula about Moraes’s actions, receiving the response: “do whatever is necessary.” Thus, the case exposes an environment of extreme institutional constraint.

Historical Patterns

Indeed, this episode is not isolated. In 2018, the Federal Revenue created a list of public agents with incompatible assets, including wives of Supreme Court justices. Consequently, Alexandre de Moraes halted the investigation and removed auditors, turning investigators into the investigated. Therefore, the pattern of institutional protection was already evident.

Controversial Decisions

More recently, Justice Dias Toffoli ordered hearings during recess, against the will of the Prosecutor General’s Office and the Federal Police, in a gesture seen as institutional humiliation. Additionally, the Federal Audit Court (TCU) demanded explanations from the Central Bank about the liquidation of Banco Master, despite clear evidence of fraud. Consequently, the system appears to act under political rather than technical pressure.

The Risk to Democracy

In summary, the Banco Master case is no longer just about a bank. Thus, it reveals the limits between regulation and pressure, between justice and the appearance of justice. Therefore, when institutions seem uncomfortable with facts, the problem is not who observes, but what is being reflected. In conclusion, the episode demands transparency and rigorous investigation to preserve democracy.

CTA: Want to understand how financial scandals and political pressure threaten democracy? Explore other articles by Pedro Freitas and keep your critical eye on the Supreme Court and the financial system.

Sources:

• Reports from Folha, CNN Brasil, and Mônica Bergamo on institutional pressure
• Central Bank – liquidation of Banco Master and identification of fraud
• Federal Revenue history and Supreme Court decisions on family law firms
• Federal Audit Court (TCU) – questions about Banco Master liquidation