Fachin and Barroso address STF crisis amid Banco Master scandal

STF President Luiz Edson Fachin advocated for judges' impartial distancing and resumed discussions on an ethics code in response to the Banco Master crisis. In an interview, retired Justice Luís Roberto Barroso acknowledged a 'difficult moment' for the court but urged caution in judgments. The scandal impacts ministers like Alexandre de Moraes and Dias Toffoli, with revealed messages and business ties.

The crisis at Brazil's Supreme Federal Court (STF) took new turns with statements from President Luiz Edson Fachin and retired Justice Luís Roberto Barroso on the Banco Master scandal. Fachin, the court's president, emphasized in a meeting with tribunal leaders the need for 'healthy distancing from parties and interests at play,' stating that 'impartiality is not coldness, but a condition for equity.' He warned that justice cannot be 'imprisoned by parochial interests, economic conveniences, or political calculations,' and that decisions must withstand public scrutiny.

Behind the scenes, Fachin has supported rapporteur André Mendonça, with whom he spoke on the night of March 9 about structuring the case. He resumed talks with Justice Cármen Lúcia on the ethics code, announced in February but postponed until after the 2026 elections. Fachin also granted more aides to Mendonça's office and conversed with colleagues like Gilmar Mendes and Alexandre de Moraes to manage tensions.

Barroso, in a March 11 GloboNews interview, said he had 'never heard of' Daniel Vorcaro, the liquidated bank's owner. He acknowledged a 'real critical perception' of the STF, citing newspaper readings and friend conversations, but advocated avoiding 'hasty judgments.' The scandal involves messages exchanged between Moraes and Vorcaro on the day of the latter's first arrest, denied by the justice, and Dias Toffoli's removal from rapporteurship after revealing a stake in a company sold to Vorcaro-linked funds. Barroso praised Fachin and Mendonça, viewed the ethics code sympathetically as a 'societal demand,' and criticized extra pay, admitting irregularities to address.

Fachin stressed that judicial privileges rely on public trust and that the Judiciary cannot emerge 'smaller' from the remuneration debate.

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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.

STF Justice Luiz Fux defended Rio de Janeiro from generalized criticisms by colleagues during a hearing on state elections, citing the Banco Master scandal involving other court members. He stated that good Rio politicians, if they go to hell, will be accompanied by high authorities. The exchange took place in a session on the interim command of Palácio Guanabara.

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STF President Edson Fachin rejected a Senate CPI of Organized Crime's appeal against Justice Gilmar Mendes' earlier suspension of secrecy breaks on Maridt Participações, a firm linked to Justice Dias Toffoli. This keeps the company's banking, fiscal, phone, and telematic records sealed amid probes into financial irregularities and possible organized crime ties.

STF Justice Flávio Dino advocated in an article in Correio Braziliense for harsher penalties on crimes like corruption and embezzlement by justice system members. He proposes immediate removal upon indictment and automatic loss of position upon conviction. The suggestion comes amid debates on judiciary reform.

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STF Minister Flávio Dino suspended, on a preliminary basis, the breach of bank and fiscal secrecy for a businesswoman close to Lulinha, son of President Lula. The ruling prompted the defense of Fábio Luis Lula da Silva to seek the same protection and drew criticism from the INSS CPI, which sees it as an affront to Parliament.

Brazil's Senate rejected Attorney-General Jorge Messias's nomination to the Supreme Federal Court (STF) on Wednesday (April 29, 2026), with 42 votes against and 34 in favor. The vote marks the first rejection of a presidential nominee to the Court in 132 years, since 1894. Messias had been approved by the CCJ committee 16-11 after an eight-hour hearing.

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