Updated
Updated · Bloomberg · Jun 23
Lula Weighs Replacing Senate Leader Jaques Wagner This Week in Brazil Banking Fraud Fallout
Updated
Updated · Bloomberg · Jun 23

Lula Weighs Replacing Senate Leader Jaques Wagner This Week in Brazil Banking Fraud Fallout

2 articles · Updated · Bloomberg · Jun 23

Summary

  • Lula could decide as soon as this week whether to remove Senator Jaques Wagner as the government’s leader in the Senate, according to a person familiar with the discussions.
  • A police investigation has pulled Wagner into the Banco Master case—described in the report as Brazil’s biggest banking fraud probe—raising concern inside Lula’s camp about damage to his reelection effort.
  • Wagner, a longtime Lula ally, is expected to meet the president on Wednesday, a session that could determine whether he keeps one of the government’s most important posts in Congress.
  • The deliberations show the Banco Master fallout reaching Brazil’s political core, with Lula weighing loyalty to a close ally against the electoral risk of keeping him in place.

Insights

As Brazil's biggest bank scandal hits both political camps, who truly stands to lose?
With top judges implicated in Brazil's biggest fraud, can the justice system save itself?