'Trump attacked Brazil's financial system, provoked by Bolsonaro and Eduardo,' says Gleisi.
Devaluation of banks in Brazil is "another part of the cost of Bolsonaro," says the minister.
247 - The Minister of Institutional Relations, Gleisi Hoffmann (PT), reacted to the turbulence in the financial market and attributed responsibility for the crisis to Jair Bolsonaro (PL), his son Eduardo and the President of the United States, Donald Trump. In a statement published this Wednesday (20), Gleisi defended the decision of the Minister of the Supreme Federal Court (STF) Flávio Dino, who blocked the automatic application of the Magnitsky Law in Brazil, generating a judicial impasse in the financial system.
“It was Donald Trump who attacked the financial system in Brazil, provoked by Jair Bolsonaro and his son Eduardo. Minister Flávio Dino made a decision in defense of national sovereignty, our laws, and even the banks that operate in our country. He acted in legitimate defense of Brazil. Speculation with the value of bank stocks is yet another part of the 'Bolsonaro Cost,' which has fallen on the country since he allied himself with Trump to avoid prosecution for his crimes,” said the minister.
Shares of the largest banks operating in Brazil suffered a sharp decline on Tuesday, directly impacting the Ibovespa, which fell 2,1% and closed at 134.432,26 points. Banco do Brasil plummeted 6%, Itaú Unibanco fell 3,05%, Bradesco retreated 3,43%, Santander lost 4,88%, and BTG Pactual fell 3,48%. In this trading session alone, the financial sector lost R$ 41,9 billion in market value, according to the portal. E-Investor.
The declines were driven by uncertainty surrounding the application of the Magnitsky Act, which provides for sanctions against foreign officials and was used by the Trump administration against Minister Alexandre de Moraes. Dino ruled that no restrictions imposed by foreign governments have automatic effect in Brazil, which created a legal impasse for banks, which fear billions in penalties from the United States if they do not apply the measures.
Uncertainty in the financial system
An internal report from BTG Pactual revealed that financial institutions are considering unilaterally closing the accounts of clients affected by the sanctions as a way to mitigate risks. The strategy aims to prevent banks from being labeled as "facilitators" in the United States, while simultaneously protecting themselves from legal challenges in Brazil.
