A broker watches his screens at a brokerage firm in Sao Paulo, Brazil, Thursday, May 18, 2017. Brazilian federal police are searching the office and homes of Neves, a top senator and presidential contender.
Temer denied the accusations and after much speculation told an audience on Thursday in the capital Brasilia he would not resign.
"If Temer doesn't fall, he will lead a walking dead administration", said Claudio Couto, a political science professor at Fundacao Getulio Vargas, a Sao Paulo-based university and think tank.
Traders aren't convinced. Brazil's stock market fell by 10% in early trading this morning, wiping out nearly all of the year's gains in a matter of minutes.
Brazil's Real currency lost 8% of its value against the United States dollar in the first half of Thursday. The court failed to grant prosecutors' requests for a warrant to arrest Neves, who lost the 2014 presidential election to Rousseff by a thin margin.
Despite all the calls for his head, the veteran centre-right politician - who took over previous year after the impeachment of leftist president Dilma Rousseff - came out swinging.
If confirmed, the allegations could prove devastating for Mr Temer, whose administration has lurched from one crisis to another since he took office just over a year ago.
Rousseff and her leftist allies accuse him of having engineered her impeachment and his own rise to power past year in what they say amounted to a coup d'etat. Cunha was later imprisoned on a 15-year sentence for corruption.
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According to the report, the president discussed the matter with Joesley Batista, an executive from the meatpacking giant JBS, on March 7. According to the Globo report, Batista secretly recorded the conversation with Temer and gave it to justice officials as part of plea bargain negotiations.
"Michel Temer is like that boyfriend who doesn't know it's over", one Twitter user said.
JBS representatives did not respond to an email sent by The Associated Press late Wednesday seeking comment. The following are the threats he faces: FORCED TO QUIT If his coalition allies abandon him, as some have started to do, Temer would no longer have enough support to govern Brazil and pass austerity measures badly needed to bring a gaping budget deficit under control. Since launching three years ago, the "Car Wash" probe into billions of dollars in kickbacks has put several top businessmen and politicians in jail. Brazil's highest electoral court is reviewing allegations that the Rousseff-Temer ticket received illegal campaign financing, and if it should annul their victory, Maia also would take over and Congress would choose a new president. Congress cancelled its sessions, including suspending work on legislation that Temer's administration hopes will pull Latin America's largest economy out of its worst recession in decades.
Globo published what seemed to be pictures showing men delivering a suitcase of cash for Neves, who was suspended Thursday from his position.
The Eurasia risk consultancy said the new allegation threatens Temer.
Social groups and members of parliament are demanding the resignation of Brazil's coup-imposed president, Michel Temer, after a wiretap implicated the leader in a political corruption scandal. Aecio Neves, at Planalto presidential palace in Brasilia, Brazil.
The 39-minute recording was made public Thursday by the newspaper O Globo after Brazil's supreme court lifted a seal on it and opened a probe against Temer amid signs that his center-right coalition could be crumbling.
Now "those efforts may come to nothing", he warned, calling for a "full and very rapid" investigation at the Supreme Court.