Power

How can Brazil fight corruption without destroying its economy?

corruption
Petrobras was nearly destroyed by corruption and mismanagement.

In October 2019, São Paulo’s benchmark stock index Ibovespa fell almost 3 percent after the Brazilian press reported that the country’s five largest banks were being investigated as part of the anti-corruption Operation Car Wash for their connection to money laundering. Federal Police accused Itaú, Banco do Brasil, Caixa, Bradesco and Santander of laundering some BRL 1.3 billion in bribes received by politicians and business owners.

In one day, the shares of Bradesco, Santander, Banco do Brasil, and Itaú Unibanco fell 3.86 percent, 3.44%, 3.4%, and 2.75%, respectively.

This is just one example of how corruption investigations in...

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