NEW YORK (TheStreet) -- Shares of Banco Bradesco (BBD) - Get Report are slumping by 1.74% to $6.77 late Monday morning, alongside the Ibovespa after a report implicated a minister of the two-week old government in Brazil's largest corruption scandal, Bloomberg reports.
The Ibovespa is falling by 1.04% to 49,204.68 on Monday morning.
Newspaper Folha de S. Paulo said it had access to recordings in which Planning Minister Romero Juca and a former executive connected to state-owned oil company Petrobras (PBR, PBR.A) talked about how to stop the graft probe called "Carwash" from proceeding, Bloomberg said.
"This is just adding more tension to a situation that's already serious enough," Jason Vieira, chief economist at Infinity Asset Management in Sao Paulo, told Bloomberg.
"We are paying attention to how Temer will solve the first crisis. This wouldn't be happening if he had formed his team with technocrats, as the market had expected," he added.
Dilma Rousseff was forced to temporarily step down as president this month. Michel Temer is the acting president.
The Ibovespa dropped to its lowest in six weeks today.
Banco Bradesco is an Osasco, Brazil-based bank.