Lula Demands 'Complete Disclosure' in Banco Master Case as STF Crisis Deepens

President Luiz Inácio Lula da Silva on Wednesday publicly called for the "complete disclosure" of all investigations related to the Banco Master scandal, a demand that elevates the political stakes of the institutional crisis currently engulfing the Supreme Federal Court (STF). Lula described the matter as "the biggest financial crime in Brazil's history" and argued that the move was necessary to halt "selective leaks that impact the electoral dispute".

The president's intervention is a direct response to a mounting crisis within the country's highest court, Brazil’s Supreme Federal Court (STF), which has been marked by a highly public feud among its Justices. The core issue is the fallout from the investigation into the former head of Banco Master, Daniel Vorcaro, which exposed communications he had with STF Justice Alexandre de Moraes—a highly influential figure in the Brazilian judiciary. Vorcaro’s messages reportedly included requests for legal guidance and were followed by the revelation that De Moraes’s wife’s law firm had a substantial contract with the bank.

The scandal, which led to the liquidation of Banco Master in late 2025, centers on a massive financial fraud that Federal Police estimate may have caused a hole of R$12 billion (approximately $2.2 billion) and affected at least 1.6 million people. Investigators allege that Vorcaro’s bank operated a kind of pyramid scheme, promising high returns based on fraudulent securities, and had extensive political connections across Brazil’s political spectrum, which is why Lula’s call for transparency "no matter who it hurts" carries significant weight.

The judicial tension burst into the open after two rival justices—André Mendonça (an appointee of former President Jair Bolsonaro) and Flávio Dino (a recent Lula appointee)—issued opposing decisions on the handling of the police investigation, leading to an open dispute over the integrity of the Federal Police’s leadership. Lula’s move signals that the executive branch views the internal judicial conflict and the selective release of evidence as a threat to national stability as the next presidential election cycle approaches.

What happens next will depend on the STF Chief-Justice Edson Fachin, who stepped in to suspend the conflicting decisions and restore order to the court. Fachin has scheduled a plenary session to analyze reports related to Justice De Moraes's alleged role as an interlocutor for Vorcaro, a session that will determine the immediate future of one of Brazil's most powerful judges.