Lula Ally Leaves Senate Leadership Job Amid Ties to Bank Scandal

Renan Calheiros, a key ally of Brazilian President Luiz Inácio Lula da Silva, resigned as Senate leader on May 14, 2024, following a police investigation into his alleged ties to the collapsed lender Banco Master. The Federal Police's investigation, initiated in March 2024, is examining potential corruption and money laundering schemes involving the bank. Calheiros, a senator for Alagoas since 1999, has denied any wrongdoing and stated his cooperation with the investigation. His departure from the Senate leadership position, a role he held for the third time, is seen as a significant political development for Lula's administration, potentially impacting the government's legislative agenda. The investigation into Banco Master, which had its license revoked by the Central Bank of Brazil in December 2023, is also scrutinizing former executives and other political figures. Calheiros' resignation aims to shield the Senate and the Lula government from further controversy as the investigation proceeds. He will continue to serve as a senator.