Banco Master’s failure has expanded from a costly banking collapse into a dispute involving Brazil’s Supreme Court and presidential election campaign. The bank failed in November 2025 after attracting hundreds of thousands of savers with unusually high returns, including CDBs paying as much as 140% of Brazil’s CDI benchmark, a reference rate for bank funding. Brazil’s central bank cited a severe liquidity crisis and serious violations when it liquidated the institution, while the country’s deposit guarantee fund has paid about R$40.2 billion to 722,000 clients linked to the group. Allegations involving owner Daniel Vorcaro have drawn Justice Alexandre de Moraes into the scandal. The Supreme Court postponed a decision on whether to open an investigation into Moraes after Justice Flavio Dino requested more time to review allegations that Moraes advised a banker accused of leading a multibillion-dollar fraud scheme. The session ended while justices were voting on procedural matters, before they formally considered the allegations’ merits. Police evidence released this month alleges that Vorcaro contacted Moraes shortly before his arrest, while Moraes’ wife’s law firm held a R$130 million contract with Banco Master. Moraes denies wrongdoing and says Justice André Mendonça, who oversees the investigation, abused his authority by releasing the material. João Luiz, managing partner at J. Pereira Advogados, said proven misconduct would not automatically erase Moraes’ judicial record, although defendants in individual cases could have stronger grounds to challenge decisions if they establish a lack of impartiality. The scandal has also entered the election campaign. Senator Flávio Bolsonaro has called for Moraes’ removal and said that voting for current President Lula da Silva means supporting the controversy. Bolsonaro himself faces questions about financing linked to the bank for a film about his father and denies wrongdoing. The collapse has therefore become a broader fight over trust in Brazil’s courts, regulators and political system.