by Tyler Durden
Time when former President Michel Temer
is approached by the Federal Police
Photo: Reproduction / TV Globo
The latest shock to Brazilian politics makes for a new bizarre
Pretty much every former Brazilian president still
living has either been impeached or went to prison, leaving open the
question of if there is really any politician left in Brazil who has
not been tainted by the multiple years running so-called 'Car Wash
scandal' that has long rattled and decimated the Brazilian
As Latin American
journalist Filipe Domingues
"Now Brazil has a
record of 2 impeached presidents + 2 former presidents in jail:
Lula and Temer."
Brazil’s former president
Michel Temer been arrested on Thursday as part of the
sweeping and years-running 'Operation
Car Wash' anti-corruption probe, regional media reports
say, after the predecessor to Jair Bolsonaro left office on
Temer has reportedly been
sought by police, who reportedly have been trying to trace him since
he left office.
Temer, who served as president from 2016 to 2018 after the
impeachment of Dilma Rousseff, has consistently denied any
wrongdoing when he was first named as one among the dozens of
politicians and business executives rounded up and convicted as part
of the multi-billion dollar corruption scandal dubbed Operation
Car Wash - named so because it was first uncovered at a car wash
The allegations first
came against Temer during his presidency in 2017, but which were
blocked by allies in Brazil's congress.
The sprawling investigation, involving at least 6.4 billion reals
($2.0 billion) in bribes for contracts with state-run enterprises,
has charged 200 people and convicted more than 80 executives and
Former Brazilian President
Temer's long-time-in-coming arrest happened Thursday morning in a
police raid on his house in Sao Paulo, after which he was
transferred to federal police headquarters in Rio de Janeiro.
Brazilian news portal
Globo further reports former energy minister Moreira Franco
is also being sought by federal police, who is also facing graft
Per Reuters Brazil's currency slipped as much as 1% on the news,
with the Bovespa stock index quickly falling 1.5 percent.
president Michel #Temer arrested under corruption charges. He
was Ms Roussef's vice-president and took office after supporting
her impeachment. Now Brazil has a record of 2 impeached
presidents + 2 former presidents in jail: Lula and Temer
March 21, 2019
What is 'Operation Car
Since 2014 Brazil has
been gripped by a scandal that started with a state-owned oil
company and grew to encapsulate people at the very top of
business - and even presidents.
On the face of it, it is a straightforward corruption scandal -
albeit one involving millions of dollars in kickbacks and more
than 80 politicians and members of the business elite.
But as the tentacles of the investigation dubbed Operation Car
Wash fanned out, other scandals emerged.
It has led to some of those who have found themselves accused
claiming they are the victims of political plots, designed to
bar them from office.
have told international
media outlets that their charges against
former president Temer have centered on alleged graft in the
nuclear plant Angra 3.
Meanwhile two former presidents who have found themselves under
investigation since 2014 - close allies Dilma Rousseff and Lula -
were also famously brought down over Operation Car Wash and similar
corruption-related charges, with the former impeached and the latter
spending time in prison.
* * *
After jumping yesterday following the Fed's dovish doubling down,
the Brazilian Real has sold off hard on the report, although as
Bloomberg suggests, the kneejerk reaction will soon reverse as Temer,
"doesn't have much
credibility left to lose, and his party has just 34 of 513 seats
in the lower house, so it's not obvious that this would hurt
pension reform efforts."
However, according to
Bloomberg's Sebastian Boyd, markets should be more concerned
about a recent Ibope poll showing that President Jair Bolsonaro's
approval rating fell 16% since January, which is
"to have more effect
than Temer's legal problems."