Bank Fraud Case Casts a Shadow Over Brazil’s Powerful Top Court

The collapse of a small but politically connected Brazilian lender is pulling the country’s Supreme Court into what is shaping up to be its most serious credibility crisis since the return of democracy more than four decades ago.

After a months-long investigation into alleged financial fraud, the central bank liquidated Banco Master SA in November, triggering shockwaves through Brasilia. The lender’s chief executive officer, Daniel Vorcaro, had spent years cultivating ties to powerful politicians and public officials in the nation’s capital, turning the bank into a fixture of its political and business circles. While it remains unclear how many ...