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NEW YORK (TheStreet) --Shares of Itau Unibanco (ITUB) - Get Itaú Unibanco Holding SA Report are down by 4.25% to $7.54 in mid-morning trading on Wednesday, as some U.S. traded Brazil-based stocks take a hit from the decline in Brazil's real.

The country's currency tumbled by 2.2% earlier this morning following the arrests of a key ruling party senator and an influential banker, Reuters reports. The arrests spurred concerns that the administration of President Dilma Rousseff will face continuing issues getting austerity measured passed in the country.

Senator Delcídio do Amaral, the ruling coalition leader in the upper house, and the chief executive of Grupo BTG Pactual Andre Esteves were arrested earlier today for allegedly aiding obstruct a corruption investigation into the state run oil company Petrobras (PBR, PBR.A).

"We have to assess how this will develop in terms of obstructing the legislative program...That is the biggest risk for Brazil," Roberto Campos, a partner at Absolute Investimentos, told Reuters.

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