Brazil’s Congress And Supreme Court Slide Into A Trust Breakdown

Key Points

1. Banco Master’s liquidation has morphed into a test of judicial ethics.
2. A “dosimetria” bill could sharply reduce sentences tied to January 8, 2023.
3. Protests branding Congress an “enemy” are amplifying fragility.

Banco Master’s failure turned political fast. After the Central Bank ordered extrajudicial liquidation, attention first went to deposit protection: coverage up to R$250,000 ($46,000).

Published reporting said a law office linked to Justice Alexandre de Moraes’s family held a contract described as worth R$129 million ($24 million), with monthly payments of R$3.6 million ($667,000) that reportedly stopped after the liquidation.

Reporting also said Justice Dias Toffoli traveled on a private jet with a lawyer connected to the case before later becoming its rapporteur.

Congress opened a second flashpoint on December 10, when the Chamber of Deputies approved the “PL da Dosimetria,” changing how judges calculate sentences for crimes linked to the January 8, 2023 invasion of Brazil’s federal buildings in Brasília.

The Senate still must vote, and President Luiz Inácio Lula da Silva has indicated he would veto it. Supporters say it fixes sentencing math; critics say it weakens deterrence.

Jair Bolsonaro’s Supreme Court conviction for an attempted coup set a 27-year, three-month sentence. Reporting on the bill’s mechanics has suggested the revised calculation could cut that to a little over two years, depending on application.

On December 14, rallies by left-leaning parties and unions attacked Congress, revived the “enemy of the people” slogan, and demanded a code of conduct for Supreme Court justices.

Reporting put the crowds at about 15,000 in São Paulo and 20,000 in Rio de Janeiro. Mistrust is reinforced by parallel corruption and self-protection fights.

On December 12, Federal Police executed searches in a probe into suspected misuse of parliamentary amendments, targeting an aide linked to Arthur Lira; Justice Flávio Dino authorized the warrants.

Earlier in 2025, lawmakers advanced a “shield” proposal criticized as making investigations harder, though a Senate committee later rejected a version.

Outside Brazil, the signal is simple: when courts and legislatures lose legitimacy together, rules become harder to trust, policy becomes harder to price, and volatility rises.