Lula targets Flávio Bolsonaro over Banco Master and film fund ties
President Lula launched a campaign attack linking his runoff rival, Senator Flávio Bolsonaro, to a failed bank and a biographical film about Jair Bolsonaro.
The Brazilian presidential race has intensified into financial mudslinging ahead of the upcoming runoff election. During a campaign rally on October 9, 2026, in Ceilândia—a major administrative region near the capital of Brasília—President Luiz Inácio Lula da Silva declared that Brazil "will not be governed by partners of Banco Master" or relatives of its disgraced founder, Daniel Vorcaro. The direct verbal attack targets his runoff opponent, conservative Senator Flávio Bolsonaro, the eldest son of former President Jair Bolsonaro.
The political dispute centers on "Dark Horse," an American-produced biographical drama film about the elder Bolsonaro's political rise and a 2018 stabbing attempt. Federal investigators are examining whether Flávio Bolsonaro solicited millions of reais from Vorcaro to finance the film project. Vorcaro, the former head of the failed lender Banco Master, was arrested in March 2026 under allegations of orchestrating one of the largest banking frauds in Brazil's history.
Brazil's Federal Police have requested cooperation from United States authorities to trace the destination of approximately 130 million reais ($26 million) linked to the film project. Investigators suspect that a portion of the funds may have been funneled to a U.S. account to support Flávio's brother, former federal deputy Eduardo Bolsonaro, who currently resides in the United States. Flávio Bolsonaro has denied any wrongdoing, describing the financial transaction as a private sponsorship opportunity that did not involve public funds.
The escalating scandal has become a central battleground in the tight presidential race. Following the unsealing of Supreme Court documents regarding the Banco Master probe, the Bolsonaro campaign has counterattacked by demanding transparency into the current administration's own dealings. They have pointed to recent media reports alleging that Vorcaro previously negotiated with Workers' Party (PT) figures to access state-controlled pension funds. The Supreme Court's decision to lift secrecy on the investigation ensures that the financial fallout will remain a key driver of political risk as voters head to the final ballot.
What it touches
The ongoing investigation into Banco Master and its associated funding networks directly exposes Brazil's financial sector to heightened regulatory scrutiny and political volatility. While Banco Master itself was liquidated following its fraud scandal, the political fallout continues to pressure domestic capital markets, particularly regional public banks and state-administered pension funds that historically held exposure to the lender's investment vehicles.