Brazil's President Tells Supreme Court To Suspend Corruption Probe Of Brazil's President

Tyler Durden's picture

In a move that will surely light the proverbial lightbulb over Donald Trump's head, Brazilian President Michel Temer, having been officially dragged into Brazil's massive corruption scandal after a record emerged in which he urged the payment of "hush money", said on Saturday he would ask the Supreme Court to suspend its investigation into allegations he was also involved in the carwash corruption scheme, vowing to remain in power.

Speaking during a televised address on Saturday afternoon, Brazil’s deeply unpopular president, who replaced a just as deeply unpopular president last year when Dilma Rouseff was impeached, claimed the recording that implicated him in the scandal was doctored and said he would file a petition with the Supreme Court to suspend the investigation until it could be verified, the WSJ reported.

In the recording cited by Temer, which unleashed a historic crash of the Brazilian stock market and currency on Thursday when news of Temer's involvement broke, the president can be heard chatting with Joesley Batista, chairman and heir of the beef-and-chicken JBS empire, apparently him his approval to pay the jailed former speaker of the House Eduardo Cunha - the man responsible for Dilma Rouseff's ouster last year - to buy his silence. Batista, who made the recording and gave it to prosecutors in hopes for prosecutorial leniency against JBS, said the recording wasn’t edited.

“Our country will not go off the rails—I will continue at the front of the government,” Mr. Temer said in his latest defiant speech about the allegations.

To simplify: Brazil's president just told Brazil's Supreme Court to suspend its probe of Brazil's president which would most likely result in Brazil's president being impeached. Again.

Temer’s statement comes the day after it was revealed that the executives at Brazil’s meatpacking giant JBS told prosecutors they had paid millions of dollars in bribes to the president and his predecessors, Dilma Rousseff and Luiz Inácio Lula da Silva. In documents released by the country’s Supreme Court Friday, JBS executives told prosecutors the company had paid a total of $123 million in bribes to the country’s politicians over recent years, including payments of $4.6 million to the president.

In his speech on Saturday, Temer immeiately attacked JBS, accusing its executives of “damaging Brazil.” Ironically, in a attempt to drag down JBS with him, Temer also highlighted reports that JBS made money from the latest scandal by buying large amounts of dollars before the news broke. The Brazilian real plunged in value against the dollar on Thursday, the first day of trading after a report about the recording was published.

On at least one thing Temer may be right: the alleged incident involving JBS insider trading is perhaps just as amusing as Temer telling the court to stop probing him. On Friday, Brazil's regulator said it launched probes against JBS - i.e., the company at the heart of the latest and greatest Brazilian scandal - and other companies controlled by J&F Investimentos to investigate suspicious trades made before Brazil's markets crashed after the revelation of a plea deal by the company's top executives.  In a statement late on Friday, the regulator CVM said it is investigating "signs of possible insider trading" of foreign exchange futures, derivatives and JBS stock ordered by meatpacker JBS SA, Banco Original SA and FB Participacoes SA, Reuters reported. The regulator is also examining the sale of shares in the company by its controlling shareholders and subsequent acquisitions by the company´s treasury.

The probe emerged after Brazil's Valor Economico reported on the same day that JBS and other companies owned by the Batista brothers bought over $1 billion in U.S. dollar contracts in the local market hours before the plea deal news broke.

In other words, the Batistas are accused of going long the dollar in Soros-sized amount, and shorting their own stock, in frontrunning the market turmoil that they themselves would unleash just hours later after news of the plea bargain and Temer's involvement emerged!

Not even Brazilian telenovellas have this much drama and intrigue, let alone hubris...

Predictably, JBS said denied everything and on Friday said any trades made this week were consistent with the company's strategy of hedging its large dollar-denominated debt. Amusingly, the company said the recent currency swings could have caused more than 1 billion reais in losses. It has yet to be discloed what gains the "currency  swings" generated instead as a result of the corrupt company's insider trading, pardon hedging. The real fell 8 percent against the U.S. currency on Thursday, sustaining the largest losses since the country devalued its currency in 1999.

Meanwhile, taking a page out of the Venezuela playbook, protests are planned across Brazil’s major cities on Sunday against Temer, whose popularity rating was less than 9% before the latest scandal broke.

Somewhere, Donald Trump is furiously taking notes.

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VWAndy's picture

 They caught him at a bad time?

Creepy_Azz_Crackaah's picture

Except, unlike Billy Bob, he has a hot, cankle free, wife.

mikelongisland's picture

WHERE is James Comey's memo on this ?

serotonindumptruck's picture

Yeah, but c'mon, it's Brazil!

The exceptional ones on the Potomac need not concern themselves with such petty trivialities as "corruption".

dirty fingernails's picture

Did he use the Jedi mind trick or just try to bluff

nmewn's picture's true, it is kind of like Hillary trying to do an Obi-Wan mind fuck in explaining her justification for deleting government emails... 

"It was all done under the supervision of a government official. I was that government official." 

Beans's picture

In their minds (people like him) it's always the Jedi mind trick. In everyone else's mind, it's really just a 50/50. Could go either way.

land_of_the_few's picture

Oh, the TEMERITY of him :P

Mr.BlingBling's picture

Hey you corrupt whores at the NYT, WaPo, CNN, et al . . . "THAT'S attempting to influence!"

Dilluminati's picture

Is that Comey and Hillary in Brazil?

Sounds like Bill on the tarmac.


Sabibaby's picture

'm going to ask the prosecutor to stop investigating me next time I get arrested.

bluez's picture

Carwash Corruption? Chicken Empires? WTF?

G-R-U-N-T's picture

It wasn't but a few years ago Brazil was one of the hottest emerging markets until the politicians began looting them into destitution. Won't be long until they'll be selling assets like Greece and Venezuala to the lowest bidder, then comes more and more austerity until half the population dies of starvation.

Socialism/Communism/Fascism, the next Utopia for the good of the people. However their is a caveat, perhaps they'll be exporting some of those beautiful Brazilian women.

nmewn's picture

I notice Escrava is no longer posting now that Obama is out of office.

Prolly just a coincidence ;-)

peddling-fiction's picture

I miss Escrava's crystal clear logic and common sense... /S

smacker's picture

Indeed. Well spotted. She may have come back to Brazukaland to help Dilma count her share of the spoils ;-)

smacker's picture

"It wasn't but a few years ago Brazil was one of the hottest emerging markets [...]"

This is true, although the adoration was misplaced because a lot of its new found GDP wealth was from minerals/soya/etc exports to China which has now been massively reduced. Instead of investing the increased tax revenues on improving the nation's appalling infrastructure, .gov spent it on hand-out social programs to keep Lula and then Rousseff in power.

The greatest sadness in this huge scandal is that Petrobrás is now financially on its knees having had many billions embezzled by its top management and the political elites, allegedly including Lula, Rousseff and now Temer.

You really couldn't make this up.

smacker's picture

"Not even Brazilian telenovellas have this much drama and intrigue"

Possibly true, but don't put it past TV Globo from making a novella with giant .gov scandals as its theme.

Although they'd probably need to have the scripts carefully laundered by a team of lawyers before it went out.

Chhelo's picture

Wow! Slightly less rotten than here in the US.

indygo55's picture

If the Brazialian people allow this to happen they deserve everything that they get. 

Aristofani's picture

tRumpy can forget it. Courts only suspends real investigations of corruption.

Wild E Coyote's picture

I am fairly sure that nobody here would acknowledge that under leftist President Lula, Brazil's economy was actually growing and under this so called market oriented President, market manipulating scandals are emerging. 

When will people understand that there is no magical universal system of growth. Let the countries be. let them learn and improve, or allow them to choose the path of chaos and poverty because they choose to do so. 

Arrest Hillary's picture

(Venezuelan) Socialism .... a universal template for poverty and chaos ?

LA_Goldbug's picture

Yes, before Chavez came to power Venezuela was prospering and ALL Venezuelans were doing great. Once he got in all hell broke lose and the place went to Hell called Socialism.

Well, one parameter you are forgetting is that the price of oil has been DRIVEN down for Geopolitical reasons. Main target was Russia but the rest were effected as well. Venezuela is basically a one product economy, Oil.

Yen Cross's picture

 If you can't PROVE it!!! Just go, "full" Erdogan.

East Indian's picture

Easy come, easy go.

Temer did not get that position through free and fair elections. Now he is dragged out through the same drain he crept into through.

mikelongisland's picture

WHERE is James Comey's memo on this dinner meeting ?

Yen Cross's picture

 BTFD -destruction

roadhazard's picture

Sounds like Trump.

Sizzurp's picture

Don't probe me bro.