How the Banco Master scandal injected chaos into Brazil’s presidential race

Brazil's presidential race between incumbent Luiz Inacio Lula da Silva and Senator Flavio Bolsonaro is being impacted by the Banco Master scandal, one of the largest fraud cases in the country's history. The mid-sized lender, Banco Master, was liquidated in 2025 after its owner, Daniel Vorcaro, was accused of financial crimes, leading to a significant payout from Brazil's Credit Guarantee Fund. Senator Bolsonaro is under investigation for alleged corruption and money laundering in connection with Vorcaro, with audio recordings suggesting he solicited funding for a film. While Bolsonaro has denied wrongdoing, polls indicate that voters associate the scandal more with left-wing politicians, potentially affecting Lula's campaign despite his frontrunner status. Both candidates face high rejection rates from voters.

Brazil's presidential election is heading into a tight final stretch on Sunday, with incumbent President Luiz Inacio Lula da Silva and his rival Flavio Bolsonaro engaged in a fierce scramble for votes. The campaign has been characterized by scandals and insults, failing to bridge the deep political divisions within Latin America's largest economy. The closely contested race features the 80-year-old Lula against the son of a former far-right president. Both candidates are employing last-ditch tactics to discredit each other and appeal to voters in what is described as a nail-biter election.

Brazil's final presidential debate before Sunday's election was cancelled after leading candidates Luiz Inacio Lula da Silva and Flavio Bolsonaro withdrew. Lula opted to appear on a popular podcast instead, while Bolsonaro cited "censorship" by the electoral court for his withdrawal, referencing a ruling that prevented the debate broadcaster from keeping Lula's empty seat on stage. TV Globo cancelled the debate due to "legal uncertainty" created by court rulings. Separately, police ruled out a bomb threat outside the Supreme Court on the same day. Polls show Lula with a slight advantage in the first round, with both candidates projected to be close in a potential runoff.