Brazil's Temer Released After Detention on Corruption Charges

(Bloomberg) -- A Brazilian judge ordered the release of former President Michel Temer after five days of preventative detention on corruption charges, court documents showed.

Federal Judge Antonio Athie accepted Temer’s lawyers’ habeas corpus request and also agreed to the release of former minister Wellington Moreira Franco. Prosecutors accuse Temer of "leading a criminal organization" that received or was promised more than 1.8 billion reais ($471 million) in funds diverted from state-owned companies and public works.

Temer’s arrest on Wednesday sent shock waves through the Brazilian establishment and highlighted the fact that Operation Carwash, the long-running corruption investigation, remains a powerful force in the nation’s politics. His detention clouded the outlook for the government’s economic reforms, as key members of the Bolsonaro administration squabbled publicly over the fall-out. Brazilian assets accelerated gains after news of his release.

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