Fachin's strategy for STF ethics code divides supporters

Edson Fachin, president of Brazil's Supreme Federal Court (STF), is pushing for an ethics code that even divides supportive ministers amid an image crisis tied to the Banco Master case. Supporters fear the debate could weaken the court and appear as an admission of faults. Fachin aims to build consensus, potentially delaying discussions until after elections.

Edson Fachin, president of Brazil's Supreme Federal Court (STF), is advancing an ethics code proposal that divides even supportive justices amid an image crisis linked to the Banco Master investigations. Internal assessments show Fachin has backing from most of the court's ten current members, making it a key initiative of his tenure. However, supporters hesitate over the timing, fearing it could undermine the court during a period of vulnerability.

The supportive group includes Cármen Lúcia (appointed rapporteur), Cristiano Zanin, Luiz Fux, André Mendonça, and Flávio Dino, who have diverged on major cases like the conviction of former President Jair Bolsonaro for a coup attempt. Critics, including Alexandre de Moraes and Gilmar Mendes, maintain that the Constitution and Loman (1979 National Magistracy Organic Law) suffice for regulation.

The Banco Master case highlights issues: Moraes' wife, lawyer Viviane Barci, signed a R$3.6 million monthly contract with the bank, per O Globo. Relatives of Dias Toffoli held stakes in a Master-linked fund, as reported by Folha. As rapporteur, Toffoli argued judges can own shares without directorships. Moraes denied personal conflicts and decried the 'demonization' of lectures.

Fachin is considering postponing substantive talks until after elections to build consensus through individual dialogues post-judicial recess. A Fundação FHC study recommends clauses on impartiality, integrity, and extended post-tenure quarantines. The lack of a formal draft fuels skepticism among justices.

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Illustration depicting STF scandal involving justices Toffoli, Moraes, and banker Daniel Vorcaro, as reported by The Economist.
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The economist reports scandal at stf involving banker daniel vorcaro

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The British magazine The Economist published an article stating that the Supreme Federal Court (STF) is involved in a 'huge scandal' due to suspicions of ties between ministers and banker Daniel Vorcaro, owner of Banco Master. The piece highlights close relations of judges like Dias Toffoli and Alexandre de Moraes with the business elite. The publication comes amid investigations and debates on creating an ethics code for the court.

In the ongoing Banco Master fraud probe at the STF—where Justice Dias Toffoli earlier ordered depositions from investigators including banker Daniel Vorcaro—STF President Edson Fachin issued a note on January 22, 2026, defending the court's actions and Toffoli's role. Without naming the case directly, he upheld monocratic decisions during recess, rejected threats to the institution, and warned that attacks on the STF undermine democracy.

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Following his January 22 defense of the STF's handling, President Edson Fachin issued a January 25 statement slamming media coverage of the Banco Master fraud case as an attack on the court's authority and democracy. The move has ignited debate, with columnists decrying it as shielding judges amid reported irregularities like contracts and personal ties.

Supreme Court Justice Dias Toffoli has ordered the Federal Police to take statements from individuals investigated in the Banco Master fraud case and Central Bank directors within 30 days. The action aims to clarify allegations and safeguard the National Financial System. The probe was moved to the STF following a defense request from an investigated party.

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STF Minister André Mendonça reduced the secrecy level of the Banco Master fraud inquiry on Thursday (19), after taking over from Dias Toffoli. The decision grants the Federal Police broader access to seized materials and authorizes ordinary procedures, such as depositions. This reverses prior restrictions set by Toffoli.

In a follow-up ruling, STF Minister Dias Toffoli rejected the Central Bank's embargos to remove Fiscalization Director Ailton Aquino Santos from the December 30 confrontation hearing in the Banco Master case, emphasizing his relevance despite BC not being investigated.

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The Party Novo bench filed a criminal complaint with the Attorney General's Office on Monday (26) against STF Justice Dias Toffoli for alleged atypical interference in the Bank Master inquiry. The party also requested a Federal Police investigation into the judge's actions. Lawmakers are questioning the justice's decisions and family ties to a resort involved in the case.

 

 

 

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