Key Facts
- Election margin. Lula won the 25 October runoff with about 51.8% and a lead of about 4.4 million votes.
- Market loss. B3, Brazil’s main exchange, lost about R$734 billion (US$136 billion) in value on 26 October.
- Passports. Flávio Bolsonaro did not hand over his passports to the Supreme Court by its 27 October deadline.
- Bank probe. Federal Police formally implicated 15 people in the Banco Master and BRB case on 28 October.
- Power Index. Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 75.0 points (October 2026 edition).
Three Brazilian stories from one week: a close election and the challenge to it, a one-day stock-market rout, and a bank-fraud investigation.
In Plain English
- TSE: Brazil’s Superior Electoral Court, which runs national elections.
- STF: Brazil’s Supreme Federal Court, the country’s top court.
- Flávio Bolsonaro: A senator and son of ex-president Jair Bolsonaro; he ran for the Liberal Party (PL), a conservative party, and lost the runoff.
- Banco Master and BRB: Banco Master is a private bank that Brazil’s central bank put into liquidation. BRB is the state-owned bank of the Federal District, the territory around Brasília.
- Federal Police: Brazil’s federal police agency, which investigates fraud and runs Operation Compliance Zero, the Banco Master probe.
How Lula Reversed a First Round Deficit
Luiz Inácio Lula da Silva won Brazil’s presidential runoff on Sunday, 25 October, with about 51.8% of valid votes. The Superior Electoral Court (TSE), which runs national elections, declared him elected that night with a lead of roughly 4.4 million votes over Flávio Bolsonaro.
The result reversed the first round, when Bolsonaro led by more than 2.2 million votes.Supreme Court Justice Cristiano Zanin extended voting until 19:00 for voters still in line.Lula’s campaign had asked for more time because of transport problems, and Bolsonaro’s because of rain and flooding.Bolsonaro said he would ask for the result to be annulled.
What Happened to Bolsonaro’s Passports
Supreme Court Justice Alexandre de Moraes ordered Flávio Bolsonaro to hand over his passports by 11:00 on Tuesday, 27 October. The Federal Police cancelled the passports around midday that day.
Allies said Bolsonaro had already left Brazil, while the Federal Police said it had no formal record of his exit. An official of the US State Department told a Brazilian TV reporter on 27 October that Washington would issue him visas.
The official was not named.
How Much Brazilian Stocks Lost in One Day
Brazil’s stock market fell sharply on Monday, 26 October, the first trading day after the runoff. The Ibovespa, the main index of the B3 exchange in São Paulo, closed down 13.88%.
B3’s listed companies lost about R$734 billion in value, from R$5.684 trillion to R$4.950 trillion. That is about US$136 billion at R$5.40 per dollar.
The dollar rose 8.21% against the real to R$5.4029 the same day.
What Police Allege About Banco Master Loans
Brazil’s Federal Police sent a partial investigative report of more than 700 pages on 28 October in the Banco Master case, part of Operation Compliance Zero. It formally implicates 15 people.
Police say operations between Banco de Brasília (BRB) and Banco Master involved about R$17 billion (about US$3.1 billion at R$5.40).Daniel Vorcaro, Banco Master’s founder, and Paulo Henrique Costa, a former BRB president, are both part of what police call the group’s strategic core.
What Links These Stories
These are three separate signals from the same week, not one story. Each one is covered in full in the Rio Times reports listed below.
The market fall and the election challenge both followed the 25 October runoff. The bank investigation is a separate case.
The reports behind this Big Read
What It Means for US Readers
For US investors, a one-day loss of about US$136 billion in listed-company value shows how sharply Brazilian assets can reprice around a contested election. The dollar’s 8.21% rise against the real shows how fast the currency moved with it.
For US policy, Bolsonaro’s visa is a diplomatic question. Washington has said it will issue the visas, while a Brazilian court order on his passports stands.
What to Watch Next
Watch for the Supreme Court’s response to Bolsonaro’s passport case and any further US decision on his status. The Federal Police report also awaits action by prosecutors.
Watch whether the Ibovespa recovers its 26 October losses in the coming sessions.
What Is Not Known
It is not yet clear whether or when Bolsonaro will file a formal request to annul the result.Reports said Bolsonaro arrived in the United States on 27 October; Brazilian authorities have not confirmed where he is.
Sources
The Rio Times, Banco Master and BRB · The Rio Times, market loss · Superior Electoral Court (TSE) · Supreme Federal Court (STF)
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
Brazil runoff, Sunday, October 25: Brazil runoff: date, poll closing times and when results start. Latest: Brazil runoff polls, Flávio 51%, Lula 49%.
Frequently Asked Questions
Did Lula officially win Brazil’s election?
Yes. The Superior Electoral Court declared him elected on 25 October with about 51.8% of valid votes and a lead of about 4.4 million votes.
How much did Brazilian stocks lose after the runoff?
The Ibovespa fell 13.88% on 26 October, and B3-listed companies lost about R$734 billion (about US$136 billion) in market value.
What is the Banco Master case?
Federal Police say operations between Banco de Brasília and Banco Master involved about R$17 billion (about US$3.1 billion). Police formally implicated 15 people on 28 October.