From: "Jeffrey E." <[email protected]> To: Daniel Sabha Subject: Re: FW: Faria:Brazil: No relief on the political front [C] Date: Mon, 09 Mar 2015 20:12:42 +0000 talk tomorw On Mon, Mar 9, 2015 at 4:11 PM, Daniel Sabba fr> wrote: Classification: Confidential Original Message----- From: Isin Sumengen-Ziel (DEUTSCHE BANK AG, LO) [mailto: Sent: Monday, March 09, 2015 7:43 AM Subject: Faria:Brazil: No relief on the political front --- Original Sender: JOSE CARLOS FARIA, DEUTSCHE BANK S.A. B The Supreme Court has released the list of people under investigation in the Petrobras bribery scandal. The list includes 34 congressmen and five former ministers of President Dilma Rousseff. As expected, Lower House Speaker Eduardo Cunha and Senate Speaker Renan Calheiros are among the 34 congressmen. According to newsmagazine Veja, the government believed that the inclusion of both speakers in the list would placate the two politicians and make things easier in Congress, so the news was received with a toast of Champaign at Palacio do Planalto (the government's headquarters). The reality, however, is that the inclusion of Cunha and Calheiros in the list enormously aggravated the political crisis, as the two politicians — especially Calheiros — have decided to retaliate against the government, blocking fiscal measures, installing investigation probes, etc. In our view, as the investigations keep politicians under pressure, it will be very difficult for Rousseff to regain control of Congress. Another potential problem for Rousseff is the inclusion of her former Chief of Staff Antonio Palocci in the list. One of the defendants testifying is a plea-bargain agreement has argued that Palocci — who will be investigated by the regular judicial system, not the Supreme Court — received illegal funds to finance Rousseff's presidential campaign in 2010. It is important to stress that the President cannot be prosecuted for offenses not perpetrated during her curren