Brazilian Finance Minister Offers Resignation Over Scandal

Brazilian Finance Minister Antonio Palocci, the architect of the country's economic recovery and market-friendly fiscal policy, offered his resignation Monday after becoming caught up in a political scandal, the Finance Ministry said.

Palocci faces accusations he frequented a house in Brasilia where lobbyists held parties with prostitutes and money arrived by the suitcase, possibly for political payoffs.

He denies ever setting foot in the house, but uncertainty about his future in Silva's administration roiled Brazil's financial markets Monday.

Palocci was sending a resignation letter Monday evening to President Luiz Inacio Lula da Silva outlining his reasons, the ministry said in a statement.